AEW, acting on behalf of its City Office Germany Fund, has acquired Novo|M office led mixed-use building on Neumarkt in Cologne, Germany, from Indigo Invest. The Fund, a German real estate Spezial-AIF, targets office properties with the potential to create further value in established and developing areas across Germany’s top six cities. The purchase price was not disclosed.
Built in 1962 and comprehensively refurbished by Indigo Invest in 2013 and 2018, the property offers c. 8,200m² of total lettable area in the heart of downtown Cologne. The building extends over four upper floors of offices, retail space on the ground floor and two basements used for storage purposes. The mixed-use building, which is currently fully let to 10 tenants from a diverse mix of industries, is in a central location in the Old Town South at one of the city's most important public transportation links and close to numerous food and beverage and retail offers.
Matthieu Samaran, Director of AEW's Düsseldorf investment team, said: “The prominent location of Novo|M in the “Domstadt” makes this an attractive investment. Furthermore, the balanced multi-tenant structure of the asset, flexible floor plans and high-quality space are aligned with the investment criteria for this Fund.”
Lars-Henning Pylla, Fund Manager of AEW City Office Germany, added: "The Cologne real estate market has continued to strengthen over the past few years, which is reflected in the current rental and vacancy levels. Having already acquired a similar asset for the AEW City office Germany Fund in Deutz on the right side of the Rhine in 2018, we are pleased to complete the fund portfolio with this inner-city property."
