QUEST Funds and Universal Investment have acquired four inner-city office properties in Berlin, Hamburg, Frankfurt and Munich as part of an investment for Bayerische Versorgungskammer (BVK). The real estate portfolio named “Urban Office RE” and comprising around 25,000m² will be part of a fund managed by Universal-Investment. The properties are core/core plus properties in central locations that were acquired by the QUEST Group in recent years and specifically developed to reach portfolio quality. QUEST Funds acts as investment and asset manager of the portfolio.
The Berlin property is known as “P88”. Measuring 8,400m² in size, it was built in 1965 and extensively renovated in 2010. It is fully let to the security company Securitas and the Bioscentia laboratory. The complex includes 101 parking spaces. The building at Potsdamer Straße 88 is only a few minutes' walk from Potsdamer Platz and the underground station Kurfürstenstraße.
In Frankfurt, it is the “Hotel Hohenzollern Office” right next to the central station that will become part of the portfolio. The office property was repositioned in recent years by QUEST's project development division. The building, which is partly listed and dates back to 1910, offers a total rental space of 7,300m².
At Neuer Wall 54 in Hamburg, QUEST Funds has secured an office and commercial building with 4,700m² of total rental space, of which 65% is office space and 35% is retail space. Here, QUEST is currently modernising the entrance area and the common areas. The long-term tenant of the entire retail space is the Danish furniture store Illums Bolighus. The office spaces are partially vacant. They are to be upgraded and rented out in the course of the modernisation measures.
The property in Munich is “Fritz”, a project developed by QUEST. In Munich’s Ludwigsvorstadt district, the QUEST Group is revitalising the office and commercial building at Schillerstraße 23a, south of the central station, which was built in 1973. Completion is scheduled for early 2022. Following its modernisation and extension by two full storeys, the property will feature 4,500m² of total rental space and a new roof terrace. It will be added to the BVK portfolio as part of a forward deal.
“Thanks to the very good micro-locations in Germany's top four cities and the high degree of diversification, this investment is a strong addition to our real estate portfolio and will generate attractive returns for our clients", said Norman Fackelmann, Head of Real Estate at BVK.
Roland Holschuh, Managing Partner of QUEST Funds, commented: "The mix of properties offers a strong combination of stable cash flows and upside potential. We look forward to working together and especially to actively further developing the portfolio."