Hines Managed Fund Acquires Mixed-Use Developments in Germany

By Adriana Pop, Associate Editor

Germany–Hines Immobilien GmbH, a fund set up and managed by Hines, has acquired two mixed-use property assets in Germany, namely Kö-Quartier in Düsseldorf and Kronprinzbau in Stuttgart.

Hines purchased the developments in off-market transactions, with the intent of adding them to the strategic long-term component of the fund portfolio.

Located along Königsallee, one of the best commercial areas of Düsseldorf, Kö-Quartier is a complex offering more than 590,000 square feet of office and retail space, along with approximately 420 parking spaces. The property’s existing five buildings are occupied by a mix of long-term tenants, including Deutsche Bank AG, Linklaters, Bank of Tokyo and Lang & Schwarz Wertpapierhandelsbank AG. Another two buildings on Breite Straße and Benrather Straße are scheduled for completion in 2017.

BNP Paribas Real Estate, Eastdil Secured and Clifford Chance Germany advised the seller in the transaction, while LBBW is providing debt financing for the property and the associated development project.

Sold by Credit Suisse, Kronprinzbau is a mixed-use building featuring approximately 275,000 square feet of office and retail space, along with 266 parking stalls in one of the most modern parking garages in the City Center of Stuttgart. LBBW is the long-term tenant of the property’s office space, while the retail component is leased to fashion retailers Max Mara and René Lezard, the traditional Stuttgart firm Feinkost Böhm and a dm drug store. Debt financing is being provided by ING.

“Kö-Quartier offers the investors the possibility of cooperating with existing premium tenants and the rare opportunity of a new development in the best office location in Düsseldorf. In particular, after the development and sale of Benrather Karree in 2003 and the purchase of the Metropolitan in 2011, I am very happy to reopen the local office of Hines Immobilien GmbH in Düsseldorf,” Benjamin Biehl, director of Hines Immobilien GmbH, says.

“As a citizen of Stuttgart, personally, I am also very satisfied with the acquisition of Kronprinzbau through the fund. The building is certainly one of the most distinguished ones in the entire city and, because of this, an extremely attractive long-term investment. After the completion of the Postquartier project and the acquisition of the headquarters of Mercedes-Benz Bank, Hines Immobilien GmbH now manages another trophy asset in Stuttgart,” adds Emanuel Coskun, director of Hines Immobilien GmbH.

For both acquisitions, Hines Immobilien GmbH was advised by Pöllath + Partners, Clifford Chance Luxembourg and PwC. Savills provided additional commercial consulting for the fund’s purchase of the Kö-Quartier complex.