Warburg-HIH Invest has acquired a “hattrick portfolio” from one of the real estate special funds managed by Real I.S. The portfolio comprises a total of three fully let multi-tenant commercial properties in Mannheim, Wiesbaden and Munich. The lettable area totals approximately 12,200m², 70% of which is office space and 25% is retail/showroom space. The anchor tenants of the office space are Krankenkasse Barmer health insurance, which uses around 25% of the office space in the portfolio, and Mannheim city council, which leases around 15% of the total office space. The weighted average unexpired lease term (WAULT) is around 6.6 years; including the option clauses in the leases, the WAULT amounts to over 15 years. The transaction forms part of an asset deal for an individual client. The parties have agreed not to disclose the purchase price.
“With this acquisition, we are gaining three fully leased portfolio properties including anchor tenants with high credit ratings who are loyal to the location. The portfolio enables us to generate cash flows and realise medium-term appreciation potential for our investors,” said Hans-Joachim Lehmann, Managing Director of Warburg-HIH Invest.“In addition to acquisitions in the top seven cities in Germany, we also take advantage of investment opportunities in growing cities. For example, Wiesbaden is characterised by high demand for office rental space with a current vacancy rate of just under two percent. In the state capital of Hesse, tenants with high credit ratings, such as public authorities, ministries and other public service providers, are particularly on the lookout for new space.”