Floreat Real Estate and Cornerstone Real Estate Advisers acquire "Büropark am Flughafen" in Dusseldorf
Dusseldorf, 14 July 2016 – Floreat Real Estate Limited (“Floreat”), with Cornerstone Real Estate Advisers GmbH (“Cornerstone Germany”), as asset manager, has advised on the acquisition of the "Büropark am Flughafen" [Airport Office Park] in Dusseldorf by the Real Assets (RA) Global Opportunity Fund I Ltd. The vendors of the property, situated at Parsevalstrasse 7-9, were Varia-Bau AG & Co. KG and Parsevalstrasse GmbH & Co. KG. The management team of Cornerstone Germany is also participating in the deal as co-investor.
The "Büropark am Flughafen" is a complex of two buildings, constructed in 1994, with a total lettable area of around 29,600 sq m. Approx. 27,900 sq m is office space, with around 1,700 sq m of filing and canteen accommodation. The main tenants include ZTE Services, SITA Airport IT, ARVOS and Atraveo. The property, which is currently 68% let, includes 525 car spaces in an underground car park and 83 surface parking spaces.
Floreat and Cornerstone Germany are planning further upgrading of the building, formerly the head-quarters of LTU International Airways. The plans include improvements to the entrances and the façade, as well as the landscaped areas. The underground car park and the roof are to be refurbished and tenant fit-out carried out.
Clive Thomas, Managing Director of Floreat Real Estate, comments: “The acquisition is our second in Germany, and fits our strategy to acquire well located assets in markets with strong fundamentals, and to add value to create good future cash flows. The Dusseldorf office market has favourable a supply and demand balance, and the proposed upgrading of the property, which is well positioned close to the airport, will drive performance and future lease up. Floreat hope to add to their portfolio of assets in Germany over the next 12 months, with a focus on Office and Logistics sectors.”
Julian Kaup, Dusseldorf Branch Manager of Cornerstone Germany, says: "We will continue to develop this value-add property actively. The next stage is to further stabilise and gradually improve the letting situation. The reconfiguration and refurbishment works scheduled for the next 12 months will have positive effects on this, so that the property will be successfully repositioned in the booming Dusseldorf office market. The Eleven Office Center, which we have asset-managed since 2011 and is currently being sold, is an example of our success in this field. By carrying out extensive refurbishment works and an innovative letting concept, we have completely turned round the initial situation of almost 90% vacancy. That property is now 95% let."
The "Büropark am Flughafen" is situated in the highly sought-after Dusseldorf Nord/Airport office sub-market. Districts that have considerably increased in importance in the last few years, attracting numerous companies, include the Airport City site, "Quartier(n)" and the area around Theodorstrasse. Major companies there include the Porschezentrum and the headquarters of C&A, as well as Fujitsu Siemens, NaturStromHandel and WISAG Produktionsservice.
Situated next to Dusseldorf Airport, the ICE (high-speed train) station and with fast and easy access to the motorway network, the location benefits from very good transport connections. Unterrath S-Bahn station is within walking distance.
Savills Immobilien Beratungs-GmbH brokered the deal and provided consultancy services.
Taylor Wessing LLP were legal advisors to Floreat and Cornerstone Germany, whilst McDermott Will & Emery Rechtsanwälte Steuerberater LLP advised the vendor.