Global private equity firm, The Carlyle Group has acquired a 12,000mÂ² building in Hamburgâs CBD from the liquidator of UFA Theater AG. This is the third deal in Germany by the Carlyle Europe Real Estate Partners fund.
The nine-floor office building and multiplex cinema is centrally located at GÃ¤nsemarkt 45 in the center of Hamburg, close to the State Opera. The building comprises offices, a cinema complex with 3,176 seats and a restaurant. UFA will continue to operate the cinema in the building for some time.
Carlyle plans to restructure the building and design new and modern retail and office space.
âWe think this will provide a very desirable development in the center of Hamburg, with good subway and bus links. We are delighted to be embarking on another development in Germany,â said Dr. Wulf Meinel, Managing Director, The Carlyle Group.
Carlyle was advised by Clifford Chance as legal advisers and financing was provided by Hypo Real Estate Bank AG. The seller was represented by the Hamburg-based brokerage firm Grossmann & Berger.
This investment is the third completed in Germany by the Carlyle real estate team. In Germany Carlyle has also invested in a 20,000mÂ² office building in DÃ¼sseldorf, which was acquired in November 2003, and an office and warehouse building composed of 55,000mÂ² based near Hamburg, which was purchased in October 2001.
âThe German market is becoming increasingly interesting for international operators like us, both in terms of its yields and its mid term market outlook. We will add significant investments to the existing German portfolio in 2005. Our focus will continue to be directed towards undervalued office, retail and residential properties with clear upside potential from repositioning, transformation or redevelopment,â said Dr. Wulf Meinel.
Source: The Carlyle Group