DIC Asset AG has purchased the office real estate Office Center Plaza in Hanover for its investment fund DIC Office Balance II for approx. €32 million.The seller is a private investor. The property has a total lease area of 17,700m² and borders on the Hanover exhibition site, with its worldwide important trade fairs CeBit and Hannover Messe.
The anchor tenants occupying around 13,200m² are Niedersächsische Landesentwicklungsgesellschaft (NILEG) Immobilien GmbH, building-service company and property developer that is a member of the Vonovia Group, and htp GmbH, a company operating in the telecommunications branch in the Hanover area. The lease level for the building, which was erected in 2002, is currently 93%. GSK Stockmann + Kollegen and ANGERMANN were involved in the purchase as consultants. DG Hyp AG provided the financing.
"With the Office Center Plaza we have acquired a modern property in an outstanding location with very good public-transport connections; an ideal extension of the previous investment portfolio. Given the high level of demand in the office market in Hanover, we are confident that we can quickly reduce the existing vacancies," said Aydin Karaduman, Chairman of the Board of DIC Asset AG. In Lower Saxony's state capital, according to the real-estate-market report for Northern Germany issued by DG Hyp in June 2016, the number of office employees has risen over the past three years by three percent. With top rents of €14.50/m² and a vacancy rate of 4.8%, Hanover is positioned in the German office-real-estate market directly behind the Top 7 cities. "The purchase in Hanover also strengthens our regional diversification with a higher valuation of the northern region. B–cities throughout the entire territory of the federal republic will continue to form a focus of our future investment strategy," added Karaduman.
With the purchase DIC Asset increases its fund investment volume for 2016 to more than €330 million. This already amounts to two-thirds of the target volume stipulated for 2016 of €500 million, which was increased after the presentation of the half-yearly report at the beginning of August.
