HIH Invest Real Estate Acquires KOB Office Scheme in Mönchengladbach

Property with over 5,000 square metres of total lettable area

Asset earmarked for “Deutschland Selektiv Immobilien Invest II” Article-8 fund“

Offices in core location, DGNB “Silver” certified

Hamburg, 21 October 2021 – HIH Invest Real Estate (“HIH Invest”) just acquired a mixed-use property of offices and doctors’ surgeries in the inner city of Mönchengladbach via an asset deal. It was sold by the German company Jordan Grundbesitz GmbH. The property, which is located at the corner of Viersener Strasse and Kaiserstrasse and was built in 2013, represents a fully occupied multi-tenant building with a total lettable area of about 5,040 square metres, thereof about 4,280 square metres of office space, 510 metres of doctors’ surgery space, and 250 square metres of archive and storage area. Main tenant is the law firm of Kapellmann und Partner, one of Germany’s leading providers of legal services, which occupies more than 90 percent of the lettable area. There is also a doctor’s surgery on the premises. In addition, the “Kapellmann Office Building” (“KOB”) features an underground car park with 84 parking spots and several EV charging stations. The property was certified for the DGNB “Silver” sustainability standard and was acquired for the portfolio of the “Deutschland Selektiv Immobilien Invest II” fund.

“With the KOB property, we managed to secure yet another attractive investment in the Rhine-Ruhr metro region, the largest conurbation in Germany,” said Daniel Asmus, Senior Transaction Manager Germany at HIH Invest. “The KOB is defined by high alternative use potential, because two circulation cores and cavity flooring create the option to partition the lettable area into bespoke units. Moreover, a stable cash flow is ensured by the fact that the building is fully occupied by two high-net-worth tenants.”

Tilman Kaminsky, fund manager at HIH Invest, added: “Our fund pursues a sustainable investment strategy and is in the process of building up an attractive and energy-efficient portfolio. The KOB is a perfect fit: Certified under the DGNB Silver standard, the property satisfies our ESG criteria for the fund, and is optimally integrated into the local infrastructure. The economic conditions and long-term leases signed for the property will secure attractive and stable cash-on-cash returns for the funds.”

The building is located in the centre of Mönchengladbach and benefits from excellent public transportation access while also conveniently reached by car. The central railway station is roughly a ten-minute walk away, and the nearest bus stop is located directly across the street. Also within walking distance lies Mönchengladbach’s prime high-street pitch along Hindenburgstrasse, the “minto” shopping centre and a number of restaurants.

Mönchengladbach is characterised by a diversified economic structure of mid-market companies. The city has a population of more than 260,000 and is optimally connected to the German motorway network and less than an hour away from two international airports. Formerly an industrial town, Mönchengladbach has evolved into a services-dominated city and generates strong demand for office real estate.

The legal and tax due diligences for the buyer side were handled by the law firm of CLIFFORD CHANCE in Frankfurt am Main. The technical and environmental due diligence (TEDD) was performed by C.P.H. Projekt- und Baumanagement GmbH in Hamburg. The due diligences on the seller side were done by Jordan Capital GmbH, a family-run independent asset manager for private and business clients, while tax advice was provided by the tax consultancy firm of WWS – Wirtz, Walter, Schmitz in Mönchengaldbach. Anteon, a member of German Property Partners (GPP), acted in an exclusive advisory and mediating role for the seller. It was agreed not to disclose the selling price.

“With the KOB property, we managed to secure yet another attractive investment in the Rhine-Ruhr metro region, the largest conurbation in Germany. The KOB is defined by high alternative use potential, because two circulation cores and cavity flooring create the option to partition the lettable area into bespoke units. Moreover, a stable cash flow is ensured by the fact that the building is fully occupied by two high-net-worth tenants.”

Daniel Asmus, Senior Transaction Manager Germany
HIH Invest Real Estate

“Our fund pursues a sustainable investment strategy and is in the process of building up an attractive and energy-efficient portfolio. The KOB is a perfect fit: Certified under the DGNB Silver standard, the property satisfies our ESG criteria for the fund, and is optimally integrated into the local infrastructure. The economic conditions and long-term leases signed for the property will secure attractive and stable cash-on-cash returns for the funds.”

Tilman Kaminsky, Fund Manager
HIH Invest Real Estate