TMW Pramerica Property Investment GmbH, on behalf of its open-ended fund TMW Immobilien Weltfonds, has announced that it has acquired Boston Properties' office portfolio in Loudoun County, Virginia. The property is near Dulles International Airport, one of the largest airports in the U.S., which serves the Washington, D.C., metro area.
The portfolio, acquired for about US$130 million (approx. €82m), comprises four office buildings, including three that make up the Orbital Science Corporation campus, home to one of the world's leading developers of satellite and missile systems. Orbital's 156-acre campus totals 337,228 ft² of space. The fourth building, totaling 127,000 ft², has three tenants, including the U.S. Postal Service and VeriSign.
"This acquisition gives our clients access to an outstanding opportunity to benefit from an investment in one of the fastest growing areas in the United States," says Sebastian Lohmer, managing director and portfolio manager of the TMW Weltfonds. "With current market conditions, we've been monitoring the U.S. very closely to find the right investments for this fund. We believe that this portfolio's location, strong tenant base and excellent quality provides the potential for growth."
Loudoun County, an international hub for technology, communications and transportation services, is the third-fastest growing county in the United States, with an average growth rate of 8% a year since 2000, according to the Economic and Social Research Institute. The region benefits from strong economic fundamentals, fueled by demand generated by government contractors and telecommunications firms. In fact, economy.com projects that Northern Virginia will add more than 12,500 new jobs to the region in 2008.
The Loudoun acquisition is the third U.S. transaction for the portfolio. With this purchase the U.S. share within the Weltfonds portfolio grows up to more than 20%. With a total fund volume of approx. €515 billion as of October 31st the globally investing fund has reached a yield of over 6.3% (BVI method).
TMW Pramerica Property Investment GmbH is a wholly-owned subsidiary of Pramerica Real Estate Investors, the real estate investment and advisory business of the U.S.-based Prudential Financial, Inc. It's a fully licensed KAG offering Spezialfonds and global Publikumsfonds to retail and institutional investors.