Diok RealEstate AG has acquired two office buildings, one being located in the Detmold area (North Rhine-Westphalia), the other in the greater Munich area (Bavaria). The office property in the Detmold area is fully occupied by a high-net-worth tenant. The property extends over nearly 4,800m² of lettable area and comes with an adequate number of parking spots. The current annual net rent equals c. €410,000. The remaining lease term is about 3.3 years but includes renewal options for the tenant, who has been in the building since 2001.
The office building in the Munich metro area has well over 15,000m² of lettable area and superb transportation access. This asset is let to several tenants, among them the two high-net-worth anchor tenants, and has a weighted average lease term (WALT) of around five years. The current annual net rent equals c. €1,800,000.
Both properties were acquired within the framework of off-market transactions, which are subject to various conditions precedent/subsequent for the time being. The purchase price was not disclosed.
Markus Drews, Member of the Board of Diok, said: “By investing in these three new assets, we are widening the risk diversification of our portfolio even further while sustaining a high rate of return. Against this background, we are always seeking and finding promising opportunities to ensure further portfolio growth. In fact, negotiations to secure our next properties are already in an advanced stage. The quality of the tenants and of the buildings included in our portfolio ensure that our cash flow, which is currently spread across more than 45 tenants in 16 locations, remains sustainable.”
