Savills Investment Management (Savills IM), an international real estate investment manager, has signed a purchase agreement for an office building under construction in Leipzig for its club deal special fund "Savills IM Real Invest 1".
The developer and seller is OFB Projektentwicklung.
This transaction is a forward commitment, with the purchase price remaining undisclosed. The club deal fund, which was launched in 2013 for three German insurance companies, will grow its portfolio to 11 properties in 10 German cities upon completion of this and another new office building acquisition in Nuremberg.
The "NETZWERK" office building currently under construction is scheduled for completion in the fourth quarter of 2022. It will comprise around 11,500 sq m of rental space on seven floors. The office space has already been fully let to Mercateo, an operator of B2B e-commerce platforms, for a term of 10 years.
The property has excellent connectivity, with its central location granting easy access to the inner-city ring with the main shopping area, the university, the main railway station as well as tram and bus stops in the immediate vicinity. The ultra-modern building is designed as a smart building and will be equipped accordingly with sensor technology for daylight control and intelligent building management systems. DGNB Gold certification is being sought.
Savills IM was advised legally and fiscally by DLA Piper, technically by Diederichs International and commercially by JLL and BDO. The law firm Steinhaus Prof Dr Griesar Partnerschaftsgesellschaft acted in legal matters for OFB Projektentwicklung. The real estate consulting firm BNP Paribas Real Estate accompanied the transaction.
Tim Ulrich, Deputy Head of Transaction Management Germany at Savills IM, says: “Leipzig, one of the most dynamic B locations in Germany, has been experiencing strong demand for office space and rising take-up for a few years now. At the same time, vacancy rates have fallen and rents have risen. The dynamically growing metropolis has developed into an important business and technology hub. It benefits from an excellent infrastructure and is one of the fastest growing cities in Germany in terms of population. These qualities mean we have increasingly set our sights on Leipzig for real estate investment opportunities.”
Source: propertyfundsworld.com on the 29th September