Savills IM Fund to Acquire Leipzig Office Building
Savills Investment Management (Savills IM) has signed a purchase agreement for an office building currently under construction in Leipzig for its club deal special fund, “Savills IM Real Invest 1”.
The developer and seller is Helaba Real Estate Group business, OFB Projektentwicklung GmbH, which specialises in sustainable large-scale real estate development, project management and estate management, with the transaction representing a forward commitment for an undisclosed purchase price.
Savills IM Real Invest 1 which was launched in 2013 for three German insurance companies will grow its portfolio to 11 properties in 10 German cities upon completion of the current transaction and a second office building acquisition in Nuremberg.
The “NETZWERK” office building currently under construction is scheduled for completion in the fourth quarter of 2022. It will comprise around 11,500 sqm of rental space on seven floors. The office space has already been fully let to Mercateo, an operator of B2B e-commerce platforms, for a term of 10 years.
The property has excellent connectivity, with its central location granting easy access to the inner-city ring with the main shopping area, the university, the main railway station as well as tram and bus stops in the immediate vicinity. The ultra-modern building is designed as a smart building and will be equipped accordingly with sensor technology for daylight control and intelligent building management systems. DGNB Gold certification is being sought.
Tim Ulrich, Deputy Head of Transaction Management Germany at Savills IM, comments: “Leipzig, one of the most dynamic B locations in Germany, has been experiencing strong demand for office space and rising take-up for a few years now. At the same time, vacancy rates have fallen and rents have risen. The dynamically growing metropolis has developed into an important business and technology hub. It benefits from an excellent infrastructure and is one of the fastest growing cities in Germany in terms of population. These qualities mean we have increasingly set our sights on Leipzig for real estate investment opportunities.”
Markus Bartelmeß, responsible Portfolio Manager of Savills IM Real Invest 1 at Savills IM, adds: “This modern and sustainable new office building in a central location with its long-term lease to a tenant with a strong credit rating, as well as efficient and flexible space with high third-party usability, in a highly sustainable location, fits perfectly into the portfolio of our Club Deal fund. We are pleased that we were able to secure the office property for our investors at an early stage.”
Ralph Holeschovsky, Branch Manager Erfurt of OFB Projektentwicklung, says: “The NETZWERK convinces with its central location and with its striking façade is one of the most prominent project developments in Leipzig. The long-term lease agreement with a renowned tenant and the sale even before the start of construction exemplify the quality of the project.”
The advisors to Savills IM were DLA Piper (legal and fiscal), Diederichs International (technical), JLL and BDO (commercial), and Steinhaus (legal). Prof. Dr. Griesar Partnerschaftsgesellschaft acted as the legal representative of OFB Projektentwicklung, with real estate consulting firm BNP Paribas Real Estate accompanying the transaction.