PATRIZIA Immobilien AG has signed the purchase agreement for the acquisition of another office property portfolio in the German federal state of Hesse. The portfolio, known as Leo I, includes 18 buildings with a market value of approximately €1 billion. The seller is a subsidiary of Commerz Real AG. The execution of the transaction is scheduled in the first quarter of 2014.
PATRIZIA is acquiring the portfolio for a newly established real estate special fund.
The properties, whose tenants include the Hessian finance ministry, and the police headquarters in Frankfurt am Main, are leased to the federal state of Hesse on a long-term basis. “With this transaction, we are again demonstrating our expertise in large, non-standard real estate transactions. Via our subsidiary, PATRIZIA Alternative Investments GmbH, we are in a position to restructure real estate portfolios, which run into difficulties due to problems with capital structure,” says CEO Wolfgang Egger. The most recent example is the acquisition of the Deikon portfolio from an insolvency administrator, which was restructured successfully within a short space of time.
As early as autumn 2013, PATRIZIA acquired an extensive office property portfolio in Hesse. The portfolio known as Leo II includes 36 buildings with a transaction volume of approximately €800 million. In terms of properties, the buildings are used primarily by ministries, courts, the police and tax authorities and leased to the federal state of Hesse on a long-term basis. The Leo II portfolio was acquired likewise for a real estate special fund.
On acquiring the Leo I portfolio in April 2011, the newly created Alternative Investments segment has already successfully concluded five transactions in the office, retail and residential sector, with a total volume of over EUR 6 billion. To this, PATRIZIA attracted over €2.8 billion in institutional equity. Egger: “The expansion of our range of services was very well received by our customers. We are therefore on track towards becoming one of the leading fully integrated real estate investment houses in Europe.”
Source: PATRIZIA AG
