HIH Invest Real Estate (HIH Invest) has acquired the office building WEST.SIDE – EMBER at Vaclav-Havel-Platz 6 in Bonn on behalf of a separate account mandate for an institutional investor. The seller of the property, which was completed in the first quarter of 2024, is a major Swiss real estate investor.
Of the total 11,241m2 of rental space, 9,383m2 is designated for office use, 1,443m2 for storage and server space, and 415m2 for bicycle parking. The property includes 65 underground parking spaces, with an additional 60 spaces secured in a nearby parking garage. The G-shaped building encloses a landscaped courtyard.
The sole tenant is the German Federal Agency for Real Estate (BImA), which is housing half of its approximately 850 Bonn-based employees of the General Customs Directorate in the building. The lease agreement has a 15-year term with renewal options for up to 20 years.
The energy-efficient office building was constructed to KfW-55 standards, utilizing district heating for heating and concrete core activation for cooling. The roof features extensive and intensive greenery, and provisions have been made for a future photovoltaic system. The striking red-glazed ceramic façade includes nesting sites for various bird species. The property is aiming for a Gold certification from the German Sustainable Building Council (DGNB).
The office building is part of the WEST.SIDE district development in the Endenich neighborhood in western Bonn. The development involves the revitalization of a former 60,000m2 industrial site, where commercial and residential spaces have been constructed since 2014. The General Customs Directorate, along with research, administrative, and university institutions, are located in the immediate vicinity.
"The Bonn office real estate market recorded its best performance in recent years in 2024, primarily due to large-scale leases by public sector institutions. Rental price levels continue to rise, while vacancy rates are slightly decreasing. The location of WEST.SIDE – EMBER is ideal for the tenant, offering direct access to S-Bahn and U-Bahn trains, multiple bus lines, and highways," said Daniel Asmus, Head of Transaction Management Office Germany.
David Sanders, Head of Fund Management/Multi-Manager Business, added: "The office building at Vaclav-Havel-Platz is an all-around attractive investment: a high-quality new development, a top-tier tenant with long-term prospects, cutting-edge building technology, and a prime location. We took the opportunity to invest counter-cyclically. After recent market adjustments, now is a favourable time to invest in properties of high quality with stable rental income, as not all potential buyers have returned to the market yet."
The legal and tax due diligence was conducted by Norton Rose Fulbright, while the technical and ESG due diligence was carried out by Drees & Sommer. The property was brokered by CBRE.
Image source - HIH Invest.
Europe Real Estate — an overview of real estate developments in European countries.
