Stuttgart, Germany—International real estate firm Hines announced the purchase of the Mercedes-Benz Bank Building in Stuttgart, Germany. The property was acquired by Hines Global REIT, Inc. from DDE 24 Ltd, a transaction initiated by Colliers Bräutigam & Krämer. Debt financing for the acquisition, Hines Global’s first in the German market, was provided by local bank LBBW, Landesbank Baden-Württemberg.
Located at Siemenesstrasse 7, in Stuttgart’s northern end, near the central business district, the property comprises two separate six-story buildings for a total surface of 263,038 square feet. Completed in 2003, the asset is 100 percent leased, with Mercedes-Benz Leasing GmbH taking up most of the property, while two cafeterias occupy some street-level space. The asset features a two-level, 540-space underground car park.
According to Bloomberg’s coverage of the story, Mercedes-Benz Leasing GmbH holds the lease though January 2018. The news outlet also reported that a $69.8 million (€51.9 million) selling price for the asset.
“The Mercedes-Benz Bank Building is a high-quality asset with a strong tenancy that complements Hines Global REIT’s existing portfolio. Germany’s economy is one of the strongest in Europe, and by purchasing this asset, we have increased the geographic diversity of the REIT to a fifth country outside of the U.S.,” Charles Hazen, president and CEO of Hines Global REIT says.
Senior Managing Director Hines Germany Alexander Modell also attributes Hines Global REIT’s decision to purchase the asset to the strength of the German economy. He also motivated the decision by the property’s appeal due to its location, “its access to public transportation as well as its high visibility.”
The property’s tenant, Mercedes-Benz Bank AG, is a leading automotive bank in Germany. The Stuttgart-based company is a subsidiary of Daimler Financial Services, the Daimler Group’s worldwide provider of financial services.
Hines Global REIT is a public, non-traded real estate investment trust sponsored by Hines that owns interests in 26 real estate investments located in the United States and internationally. While this is Hines Global’s first foray into the German market, Hines itself holds 14 assets in Germany, in cities such as Berlin, Düsseldorf or Frankfurt, among others.