Hines has acquired a high potential mixed-use asset in Stuttgart, Germany, for a fund in which Hines and the Ärzteversorgung Westfalen-Lippe are jointly investing.
The purchase of Kronprinzbau 2 follows the acquisition of Kronprinzbau 1 from Credit Suisse in 2014. The investment of Kronprinzbau 1 & 2 is intended to remain a strategic long-term part of the Hines managed fund.
Kronprinzbau 2 is a mixed-use building located in the immediate vicinity of Stuttgart’s main shopping street and promenade ‘Königstraße’ and the suburban train station ‘Stadtmitte’. It provides approximately 8,500m2 of office and retail space. The entire office space has been leased to LBBW on a long-term basis. Kronprinzbau 2 is also a prime address for individual retailers with a well-balanced tenant mix from the luxury goods segment.
With the acquisition of Kronprinzbau 1 & 2, Hines was able to secure a prestigious ensemble of buildings with high location potential right in the heart of Stuttgart’s city centre. The location has developed into a significant economical part of the city and is valued by office and retail tenants, as well as consumers. Kronprinzbau 1 & 2 benefit from close proximity to Königstraße and to Stuttgart’s most prestigious office properties.
Damian Pons, director of the investment fund company, said: “We are excited about the successful closing of the acquisition for our fund. With its profile, the asset provides for further diversification of the portfolio.”
Dr. Andreas Kretschmer of the ÄVWL also expressed his consent: “For us, such a significant object in the heart of the city is the optimal subsequent investment in immediate proximity of this prime location. Thus another core asset was added to the fund, which, especially in the long run, is a secure investment in one of Germany’s largest economical metropolis.”
Emanuel Coskun, director of Hines Immobilien GmbH, added: “Kronprinzbau 2 is one of Stuttgart’s centerpieces and a very attractive investment. After the completion of the Postquartier project and the acquisition of the headquarters of Mercedes-Benz Bank as well as Kronprinzbau 1 and Caleido, Hines Immobilien GmbH now manages another trophy asset in Stuttgart.”
