Warburg-HIH Invest Real Estate sold an office property in Vienna to a real estate fund managed by Blue Colibri Capital. The eight-storey office building was built in 2002. It provides a gross lettable area of about 13,830m² and 147 underground parking spots. The main tenant is the federal government of Austria with its Ministry of Finance. The weighted average lease term of the office property is roughly ten years. Acquired by Warburg-HIH Invest in December 2015, the property was now sold via a limited tender process. The scheme is conveniently located in the 11th district in south-east Vienna, near the A23 motorway, and around two kilometres from Vienna’s central railway station.
“The asset strategy succeeded in securing long-term rental upside potential. The above-average length of the lease terms reflects the demand for efficient office accommodation in this sub-market,” said Jana Wetzel, Real Estate Manager at Warburg-HIH Invest Austria.
“At the End of the past year, we made the strategic decision to sell because we saw an opportunity to achieve significant appreciation compared to our total investment costs at the time of the acquisition in late 2015,” added Matthias Brodesser, Head of Transaction Management International at Warburg-HIH Invest. “Notwithstanding this disposal, we intend to add further commercial real estate properties to our existing portfolio in Austria in the future.”