Hines Expands Footprint in Germany
- Dec 03, 2020
Hines has plans for a comprehensive repositioning of its latest acquisition in Düsseldorf, Germany. The company, alongside a German pension fund as its joint venture partner, acquired KOE37 in an asset deal from Deutsche Fonds Holding for an undisclosed price. Hines was advised by Pöllath & Partners, EY and CBRE Valteq, while the seller was advised by GSK Frankfurt am Main and Grunert Steuerberatung Duisburg.
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Located on the corner of Königsallee and Benrather Strasse, the 39,000-square-meter (approximately 420,000-square-foot) office building is currently leased to Commerzbank. The property offers 34,500 square meters (approximately 371,000 square feet) of leasable space and 215 underground parking spaces. However, Hines is planning a comprehensive repositioning of the property once Commerzbank’s lease is due at the end of 2020.
Benjamin Biehl, managing director and head of Hines’ Düsseldorf office, said in prepared remarks that KOE37 was located near its other Düsseldorf properties, including Kö-Quartier, Carlsquartier, Kasernenstraße and Benrather Karree and fits the company’s strategy of expanding its footprint in Düsseldorf’s banking district.
Growing the German portfolio
The acquisition of KOE37 comes several years after Hines’ previous Düsseldorf acquisition of Carlsquartier in 2016. Alongside its Düsseldorf properties, Hines has amassed more than $8 billion in assets under management in its Germany portfolio since being established in 1991.
The portfolio includes office, retail and mixed-use properties that are located in major German cities like Berlin, Hamburg and Stuttgart. The company made its debut in the Berlin office market in November 2019 with its $178 million acquisition of a nine-story property. Hines also sold a 160,000-square-foot office property in Stuttgart on behalf of its European Value Fund in April.