- The seller is a closed-end fund of Real I.S.
- Nearly 30,000 square metres of lettable area, occupied by BayernWerk Netz GmbH as single tenant
- Investor pool with institutional fund “HIH Deutschland Selektiv Immobilien Invest II”
Hamburg, 24 May 2023 – HIH Invest Real Estate just acquired the “Netzwerk” office scheme located at Lilienthalstrasse 7 in the Bavarian city of Regensburg in a club deal on behalf of German institutional investors. The property was sold by a closed-end private investor fund managed by Real I.S. Completed in 2011, the building was constructed for the E.ON group in the Westenviertel district and has since then served as head office of the group’s subsidiary, BayernWerk Netz GmbH. The building, which represents a core property, features four full storeys as well as a recessed storey with a roof terrace, and is grouped around three greened courtyards. Out of the total lettable area of 28,545 square metres, office units account for 24,761 square metres, and storage areas for 3,669 square metres. Also included are 600 underground car park and surface level parking spots. The property is DGNB Platinum certified.
BayernWerk Netz GmbH occupies the property as single tenant with a remaining lease term of around eight-and-a-half years plus one renewal option. The company has the option to sub-let units to collaborative ventures and thereby to retain flexible control over its own floor-space requirements. Overall, nearly 2,300 square metres are occupied by the prestigious WTS business consulting firm, the listed Thyssen Krupp Schulte industrial group, and the Konzept Service marketing company at present.
“What makes Regensburg a compelling office location is the city’s high economic strength and its widely diversified demand for space, which is matched by a virtually depleted supply. Over the years, the site on Lilienthalstrasse has established itself as a coveted high-end office location that supplements the inner city, specifically because of its convenient transportation access,” explained Stefanie Wicke, Senior Fund Manager at HIH Invest.
In its role as AIF management company, HIH Invest launched a closed-end institutional fund for the club deal that will be structured in accordance with Article 8 of the Sustainable Finance Disclosure Regulation (OffV). FONDSGRUND Investment GmbH, domiciled in Hamburg, acts as asset manager and transaction manager. HIH Invest has taken over the fund management and risk management.
The investment pool consists of seven institutional investors as well as the special AIF, “Deutschland Selektiv Immobilien Invest II.” The Article 8 pool fund under HIH Invest’s management invests in attractive 2/3 office locations in prospering major cities in Germany. The fund is still in its acquisition phase, having now added its fifth property asset.
“In BayernWerk Netz GmbH, we have a blue-chip tenant who occupies this attractive accommodation on a long-term lease, the property being one of the most valuable office buildings anywhere in Regensburg. We were able to acquire the property at an appropriate initial cost ratio, thereby opening up the prospect of a profitable cash-on-cash return for our investors,” elaborated Alexander Eggert, Managing Director of HIH Invest.
The legal and tax due diligences for the acquisition were undertaken by GSK Stockmann, while Cushman & Wakefield acht+ GmbH was commissioned to conduct the technical due diligence.
“What makes Regensburg a compelling office location is the city’s high economic strength and its widely diversified demand for space, which is matched by a virtually depleted supply. Over the years, the site on Lilienthalstrasse has established itself as a coveted high-end office location that supplements the inner city, specifically because of its convenient transportation access.” Stefanie Wicke, Senior Fund Manager HIH Invest Real Estate
“In BayernWerk Netz GmbH, we have a blue-chip tenant who occupies this attractive accommodation on a long-term lease, the property being one of the most valuable office buildings anywhere in Regensburg. We were able to acquire the property at an appropriate initial cost ratio, thereby opening up the prospect of a profitable cash-on-cash return for our investors.” Alexander Eggert, Managing Director HIH Invest Real Estate
