Tristan Fund Sells German Office Building
Source: Tristan Capital Partners Press Release
22 February 2022, London: Tristan Capital Partners’ core-plus CCP 5 Fund and DW Real Estate have completed the sale of a multi-purpose, multi-let high-quality office building in the south-western German city of Heidelberg to Patrizia.
The c. 26,000 sq m property, situated in the Bahnstadt submarket benefits from its prime location in the town’s most established business district and within what has been designated as an ‘Integrated Campus of Knowledge’ due to the close proximity of a number of established research and development companies.
Tristan and DW Real Estate undertook a comprehensive refurbishment of the complex including the significant upgrading of the common areas and lobby space, which was leased to a café operator, and the conversion of the former canteen and auditorium into modern Grade A office and meeting spaces. Environmental improvement works were also undertaken resulting in a BREEAM In Use rating of “Very Good”.
Beatrice Freiberger, Director at Tristan Capital Partners, said: “We acquired the property as it presented the potential to drive rental income, increase average lease terms and enhance the environmental credentials of the building as a result of a refurbishment programme that was central to our business plan. Together with DW Real Estate we have successfully increased rental income by almost 10% as well as regearing leases with all major tenants resulting in a weighted average unexpired lease term of 8.2 years. This transaction demonstrates the continued demand for well-located, sustainable, high quality office assets.”
Tristan Capital Partners and DW Real Estate were advised by BNP Paribas Real Estate, Greenberg Traurig and PWC.