Union Investment has acquired an office building with a total rental area of 6,750 sq m in Bad Homburg, north of Frankfurt am Main. The property was constructed in 2014 and is fully let to IT service provider Dimension Data. The acquisition is being made on behalf of the UII GermanM special fund. The vendor is Warburg-HIH Invest Real Estate.
The asset deal was brokered by BNP Paribas Real Estate as part of a structured sales process. The vendor was advised on legal aspects by the Frankfurt office of Clifford Chance Deutschland LLP. Law firm KFR Kirchhoff Franke Riethmüller Partnerschaft von Rechtsanwälten mbB advised Union Investment on the transaction. The purchase price was not disclosed.
“This acquisition is in keeping with our current investment strategy for the DACH region, which not only focuses on high-value transactions but also includes smaller properties if we are convinced of a location’s long-term viability. Our targeted approach involves making maximum use of the additional opportunities offered by the diverse profiles of our real estate funds for institutional investors,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment Real Estate GmbH.
“This transaction was made for strategic reasons,” said Hans-Joachim Lehmann, managing director of Warburg-HIH Invest. “We were able to achieve a good overall return well above original forecasts thanks to strong demand in an attractive market environment.”
The office building at Horexstraße 7 is located in close proximity to Bad Homburg station, which provides good links to downtown Frankfurt and the city’s international airport. The A5 motorway is also easily accessible from the property. The high-quality building is designed in the shape of a parallelogram, with its inner courtyard used by the tenant as a terrace. The building is accessed via a central two-storey entrance hall.