Peakside Capital, a specialist European real estate private equity firm, announces that it has signed a contract to acquire Solvay's German HQ in Hanover for an undisclosed sum, in a sale and leaseback transaction on behalf of the Peakside Real Estate Fund I.
Solvay GmbH has entered into a new 15-year lease at the property.
Solvay, the international chemical group, has occupied the building since it was first built in 1951. Solvay GmbH will remain in full occupation of the property following the transaction and has entered into a new 15-year lease.
Solvay's Hanover office building, Hans-Böckler-Allee 20, comprises circa 23,700 m² of high quality space. Situated in Hanover Bult, the building benefits from its central Hanover location and excellent transport connections.
Boris Schran, Founding Partner of Peakside, comments: "This sale and leaseback transaction underlines our commitment to both the Hanover and wider German property markets, which we believe continue to offer attractive investment opportunities. This is a well maintained, high quality and well located asset. In particular, we were attracted by the strong covenant of Solvay and the long lease term, providing surety of income and a stable medium to long term investment."
Dr. Andreas Meier, Managing Director of Solvay GmbH, adds: "This deal is in line with our strategy to return capital to the Group's balance sheet by selling our non-operational buildings, an exercise that we have already completed with properties in Barcelona, Milan and Paris.
"As is illustrated by the significant lease length, we remain fully committed to this building and Solvay's Hanover base. We are delighted that Peakside, who has a good reputation as an investor in the Hanover region and across Germany, will be our new landlord."
The transaction was brokered by Jones Lang LaSalle Hanover in connection with Henschel Immobilien.
Source: FTI Consulting