The real estate investment company SEB Immobilien-Investment GmbH has made another anticyclical investment by acquiring the "Halle E" office property in the Eppendorf district of Hamburg (Falkenried/Strassenbahnring 6-18) for its open-ended real estate fund SEB ImmoPortfolio Target Return Fund.
The property, which was completed at the end of 2004, is a fully converted former train shed belonging to the Hamburger Hochbahn elevated railway. This has been repurposed into a modern six-part office building with a total of around 8,400 m² of rental space and 176 parking spaces. Only the listed brick facade of the train shed was preserved. The building has been fully let to RTL Television, the Grey advertising group, Cucinaria Kitchen-Equipment GmbH and Closed GmbH.
The seller is a real estate company belonging to the Hamburg Team Gesellschaft für Projektentwicklung group, which was responsible for the entire development of the Falkenried site. Atis Real Hamburg acted as an advisor on the purchase. The purchase price, including incidental acquisition costs, amounted to around EUR 26.6 million. In line with Fund strategy, 50% of the acquisition was financed with external funds. The investment's initial return amounts to around 8.2%.
With the acquisition of "Halle 5", the Fund now manages ten properties in four countries with a market value of around 218 million.
The Eppendorf district has an excellent transport infrastructure: centrally located near an underground station and several bus lines, and only a few minutes by car to the airport and motorway access in the northwest of the city. Eppendorf features high-quality retail locations and exclusive residential areas. In the past, office properties were more likely to be standalone properties with tenants belonging to the professions. The repurposing of the former train shed in Falkenried has resulted in a unique office location with residential facilities, which with total usable space of around 60,000 m² has sufficient critical mass to position itself for the long term on the market.
Source: SEB Immobilien
