TLG Immobilien AG has acquired a hotel and office complex in central Dresden from JP Commercial XIII S. à. r. l. for approx. €28.2m. The prior asset manager, Prelios Immobilien Management GmbH, which had developed the office and hotel complex, conducted the transaction on behalf of the property’s owner.
The property is located across the central station at Wiener Platz 8/9, adjacent to one of the city’s busiest high streets, Prager Straße. The building was completed in 2008, with approx. 12,300m² of lettable space. The buildings principal tenant is InterCityHotel GmbH, a company of the Steigenberger Hotel Group, which operates a 162-room hotel at the location. Contractual rent for the property amounts to approx. €1.66m p.a., and the weighted average lease term (WALT) is around nine years.
"This acquisition is a very good fit for our portfolio. It is a high-quality property in an excellent location which will generate attractive cash flows for years to come", said Niclas Karoff, Member of TLG Immobilien AG's Management Board. "As one of the largest growth and tourist hubs in eastern Germany, Dresden offers interesting perspectives for office landlords and hotel operators alike. In addition, we expect further enhancement for the micro-location going forward thanks to the immediately adjacent 'Prager Carrée' development project, which will see a mix of residential and retail use", said Karoff.
