AEW has acquired an office asset in Dresden, Germany on behalf of one of its funds in a joint venture with local partner Catella Asset Management. The vendor is a Luxembourg vehicle represented by Optimum Asset Management. The purchase price was not disclosed.
Located on Blasewitzer Strasse, East of the Dresden city centre, at the intersection of the Johannstadt and Blasewitz districts. The area is heavily populated by healthcare businesses and media research institutes that gravitate around the city’s University Hospital and is easily accessible by public transport. The property was built in 1995 and provides a total lettable area of approximately 16,200m² over five floors across two connected buildings, as well as 170 basement car parking spaces. There are 10 retail units totalling 936m² at ground level, with the remainder comprising office space. It is 95% occupied to 20 tenants.
Alexander Strassburger, Co-Head of Investments for AEW in Europe, said: “The Dresden office market is underpinned by attractive fundamentals with a clear lack of supply and limited development pipeline combined with a growing tenant demand. Having partnered with local operators Catella Asset Management to implement our asset management plan for the property, we are confident that we can deliver attractive income uplifts and capital value growth on behalf of our investors.”
Andreas Hauff, Managing Director of Catella Asset Management, added: “The property is located in an area with high potential for value growth. Thanks to our local expertise and our experience in the value-add segment, we will reposition the property for AEW with targeted revitalisation measures.”
