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€285M European Property Portfolio
24 July 2006
The London office of HDG Mansur has completed the acquisition of €285 million of European real estate transactions on behalf of a private client. The six properties are located in Germany and the Netherlands, two new markets for HDG Mansur. The net yield for the combined purchases in Germany and the Netherlands is just under seven per cent.
Five modern office buildings were purchased in Germany – four in Frankfurt and one in Munich from, Calliston, a leading German developer who specializes in business parks and asset management, for €190 million. The buildings are all fully occupied and leased to international corporations. The four buildings in Frankfurt are leased to GE, Siemens, Celanese and Techem AG. The building in Munich is leased to Sun Microsystems. The five buildings offer a total of 832,000 sq. ft. of office space.
Chairman and CEO of HDG Mansur, Harold D. Garrison stated: "This is our first foray into the German real estate market and we are very pleased to have wrapped up this transaction at this stage of the property cycle. The German market has been through a difficult period with over building and falling rents but these acquisitions are timed to take advantage of an increased market optimism which is already resulting in strengthening occupier demand for space.
"The investment market is expected to become even more competitive with the weight of international money seeking a home in real estate resulting in increasing values over the next several years."
The Netherlands deal involved the acquisition of a newly constructed purpose built office complex for €95.85 million in Zwolle. The landmark 19 storey tower is leased to ABN Amro for ten years and serves as its headquarters. HDG Mansur purchased the building from a fund managed by the German Bankhaus Wölbern, based in Hamburg. The tower has a total of 318,500 sq. ft. of rentable office space along with 482 parking spaces. The building is in a prime location near the motorway providing easy access by car from within Zwolle and to and from other major cities in the Netherlands.
Harold D. Garrison continued: "This is our first purchase in the Netherlands and we are looking at completing more deals in the territory. Current soft market conditions in the Netherlands for the office sector are expected to improve over the next five years following projections of economic growth and more restrained supply conditions. The investment market is anticipated to remain competitive which combined with an improving office market is forecast to result in yield compression throughout the Amsterdam region.
"€285 million in real estate transactions is a clear indication to the market that HDG Mansur is a serious player in the European real estate market. These are the first two deals we have completed in Germany and the Netherlands. We have plans for further acquisitions throughout Europe and are actively looking for further opportunities, particularly in Italy, France, Spain, Poland and the Czech Republic."