Hines has acquired two mixed use assets in German city centres, financed with separate debt from LBBW and ING, on behalf of an investor client.
Kö-Quartier in Düsseldorf and Kronprinzbau in Stuttgart were the first purchases for a new Luxembourg fund set up by Hines for its investor. The assets will be managed by its German subsidiary, Hines Immobilien GmbH.
Kö-Quartier, a complex comprising seven buildings with more than 55,000 sq m of office and retail space, fronts onto Königsallee – in Düsseldorf’s prime office and retail location. Benjamin Biehl, a director of Hines Immobilien, said: “Five of the buildings are core and two are outdated and we will demolish those and rebuild brand-new office, in the heart of the banking district”. The two new assets on Breite Straße and Benrather Straße are planned to be completed by 2017.
Hines is believed to have paid €206m for Ko-Quartier and LBBW provided about €175m of acquisition financing as well as a development loan. Biehl declined to comment on the terms. He said: “Kö-Quartier offers the investor the rare opportunity of a new development in the best office location in Düsseldorf.” BNP Paribas advised the vendor, US firm Rockpoint.
Kronprinzbau is a 25,500 sq m mixed-used building located in the immediate vicinity of the Königstraße shopping mile which Hines acquired for €145m in an off-market deal with Credit Suisse’s liquidating CS EuroReal open-ended fund. Against this asset, ING provided c€90m of senior debt finance.
It is thought that Hines’ investor has not committed a fixed amount to invest and could make further purchases if the right assets were found.