CORESTATE Group acquires €25.5-mln. Hanover office and retail building (CH/DE)
Thursday 13 January 2011
CORESTATE Group, a specialist private equity real estate investor based in Zug/Switzerland, with partner offices in Frankfurt, London and Luxembourg, has announced that it has acquired Rund Carré from HSBC Trinkaus Real Estate GmbH.
The recently developed office and retail asset in Hanover was purchased for €25.5 million, representing an initial yield of 7.9%, which compares favorably to long-term yield trends. Financing for the asset has been provided by a renowned German bank on competitive terms.
Rund Carré comprises a fully-let, 14,000-m² mixed-use scheme, which was completed in 2006. It provides 8,377 m² of office accommodation long let to large German corporates. The remaining space is mainly arranged as good quality retail units. Located close to Hanover’s main train station, it is well connected to public transport and only a short distance to Hanover’s International Airport.
Ralph Winter, Founder of CORESTATE, said: “The Rund Carré asset represents a prime income producing scheme, let to strong covenants, and we believe that we have secured this asset at an attractive price. Furthermore, Hanover is an attractive investment market with strong local economic fundamentals which compare favorably to the national average in Germany."
CORESTATE Group received valuable local real estate advice from Fürst Immobilien Hannover GmbH and Angermann Global Property Alliance.