Art-Invest Real Estate has reached an agreement with Union Investment on the sale of Neuer Kanzlerplatz in Bonn, Germany. Union Investment will take over the building ensemble after completion, which is scheduled for the beginning of 2022. Art-Invest Real Estate will retain full responsibility for the project until then. The purchase price was not disclosed.
Comprising three buildings, the scheme, which is being built to the highest construction standards for modern working environments, will provide 60,000m² of rental space. Apart from a public square that will connect the buildings and provide an inviting open space in which people can meet and relax, the project will feature high-quality food offer to further generate added value for local residents and tenants. The scheme will also provide an underground car park for 950 vehicles. The future complex has already been pre-certified LEED Gold.
The largest of the three separate buildings on Neuer Kanzlerplatz in Bonn will be added to open-ended retail real estate fund Unilmmo: Deutschland. It will offer around 32,000m² spread over 28 floors. More than 8,000m² of space in this building is pre-let to Design Offices. The completion is scheduled for spring 2022.
The two other buildings that make up the office complex each provide around 14,000m² of rental space and are being acquired by Union Investment on behalf of institutional investors. They are due to be completed in summer 2021. Building 2 is fully pre-let to DB Privat- und Firmenkundenbank, while Building 3 is expected to offer a number of local amenities, including 2,600m² of retail space earmarked for café/restaurant use.
Arne Hilbert, managing director of Art-Invest Real Estate, commented: “The people of Bonn have strong feelings and high expectations with regard to this major project, so it’s important for us to be responsible for all aspects of development and to implement it right through to completion. We are delighted to be working in partnership with Union Investment as a reliable and long-term investor.”
“We consider Bonn to be one of the most dynamic secondary locations in Germany. The vacancy rate in the office segment is just two per cent and prime office rents have increased by around 55 per cent over the past ten years. Prime rents in Bonn have now reached the same level as Cologne,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment Real Estate. “Overall, the conditions are excellent for a successful long-term investment. With a wide range of real estate funds focusing on Germany, we are able to structure major investments of this kind in a number of ways. This allows us to create flexible, reliable solutions for our transaction partners.”
