Hines has sold the Medicus portfolio with six mixed-use core properties in Dusseldorf and Berlin to Union Investment. The Medicus portfolio was sold by a pension scheme (“Versorgungswerk”) as well as a joint venture of several pension schemes and Hines. The transaction is one of the largest in the German office real estate market this year. The portfolio consists of six core properties with a total rental space of 46,000m², primarily comprising of office and hotel components. Three of the properties are project developments, and another three are portfolio properties. The Berlin portfolio includes the office building currently under construction in the "Sudkreuz Berlin" district. However, the residential units which are currently built there are not part of the agreement. The purchase price was not disclosed.
Christoph Reschke, Senior Managing Director of Hines Immobilien: "The high level of interest in the run-up to the sale as well as the now successful sale clearly shows the attractiveness of the portfolio. We are very pleased that we were able to demonstrate our capabilities once again in negotiating one of the largest transactions in the market. We are convinced that with our vertically integrated platform we will continue to identify and develop attractive properties in the future and thus create sustainable value".
Wolfgang Kessler, Managing Director of Union Investment Institutional Property: "The Medicus portfolio has an outstanding property quality in predominantly top core locations with an attractive mix of new and existing properties, different lease terms with stable cash flow and rental potentials, as well as a stable value going forward. The portfolio has enabled us to lay the essential foundation for a prime core strategy for our institutional investors".