Warburg-HIH Invest has acquired the “Milestone 4” property development in Freiburg im Breisgau from STRABAG Real Estate. The property, which is also known as JobRad-Campus-Sud, occupies a central location on Heinrich-von-Stephan-Strasse close to the city’s central railway station. Following its completion, the office asset will offer a total lettable floor area of around 8,550m² and will provide a mix of co-working and open-space units, individual and multi-person offices along with conference rooms and think tank spaces. Groundwater source heat pumps, ventilation and extraction systems that include heat recovery, and a roof area with extensive greening reduce the environmental impact of the building. It also comes with highly convenient access for public and private transportation, while also being within easy reach of neighbouring countries France and Switzerland. The property is part of a larger neighbourhood development of 47,500m² of lettable area in direct proximity to Freiburg’s railway station. Other established market players have settled in the immediate vicinity.
The “Milestone 4” is fully occupied by JobRad GmbH on a ten-year lease that includes two renewal options. Completion of the project is scheduled for the second quarter of 2023. The company will seek a DGNB Gold certification for it. The purchase price was not disclosed.
“The asset at hand is a fully occupied property development centrally located in Freiburg. The high quality of building and accommodation, the modern specification and the flexible floor plan structure all recommend this new-build construction, which boasts a high alternative use potential. JobRad, who will occupy the premises on a long-term lease, has a sustainable business model and a blue-chip credit rating,” said Nadine Robra, Team Head Transaction Management Germany at Warburg-HIH Invest. “We were able to secure this high-end asset within the framework of an off-market deal and a forward-funding structure. With an attractive cash-on-cash return of about 4.2% annually, the investment will generate a stable cash flow for our institutional investors.”
“This is an ESG strategy product in accordance with Article 8 of the Sustainable Finance Disclosure Regulation,” said Tilman Kaminsky, Fund Manager at Warburg-HIH Invest. “Through this acquisition, we managed to secure an environmentally sustainable asset that is perfect for building up an energy-efficient portfolio. It is an investment promising stable long-term cash-on-cash returns for the fund.”