Prupim has entered into a commitment to purchase the development of a new headquarters for Lufthansa in Cologne, Germany. The development was purchased from CommerzLeasing and Immobilien AG on behalf of the M&G European Property Fund, and completion is planned for the 4th quarter of 2007.
This high-specification development will be the new flagship headquarters for Lufthansa who have been based in Cologne for the past 50 years. It comprises approximately 19,300 m² and is located in the Deutz district directly opposite the Cologne trade fair. It is pre-let to Lufthansa for 10 years. The location is well connected to Cologne City Centre and the international airport by train links from Messe station and an immediately accessible motorway system.
Cologne, the principal media metropolis and fourth largest city in Germany, is a focus for institutional investment in Europe, and is currently undergoing an economic renaissance, which promises strong rental growth and further investment from multinational firms.
David Jackson, Fund Manager at Prupim, commented, "Cologne is quickly moving into the top tier cities for investment in the German office market. The asset offers opportunities for excellent investment returns from a low rental base and we have secured it at a good time as this market recovers."
Cushman & Wakefield Investors were the acquisition advisors on the deal and will asset manage the investment in partnership with Prupim. Lovells acted as the legal advisors.