Purchase involves three commercial buildings in Dortmund, Wiesbaden (Walluf) and Berlin
Tenancy consists mainly of mid-market companies of the German service, IT and logistics sectors
Additional assets worth 65 million euros short-listed for acquisition
BR-NAS, a Luxembourg-based joint venture of BlueRock and NAS Invest, just acquired an office property each in Dortmund, Berlin and Walluf west of Wiesbaden within the framework of its “BR-NAS German Mittelstand Properties” strategy. BR-NAS invests in multi-tenant office properties and medical centres in German metro regions whose tenancy is defined by small and medium-sized enterprises (SME).
The property in Dortmund represents an office complex with a floor area of 6,500 square metres that was raised on Stockholmer Allee in 2001, and which is fully occupied. Tenants include Deutsche Bank, the IT service provider Adesso AG, and IBM. The multi-tenant office property in Walluf, completed in 2003, has a gross lettable area of 11,900 square metres. Its main tenant, having a remaining lease term of eight years, is PS-Team Deutschland GmbH, a mid-market process service provider active in the automobile industry. The other tenants are mainly service providers from automotive and IT industries. In Berlin, the joint venture acquired a commercial building centrally located in Kreuzberg, a period building with a gross lettable area of 1,970 square metres.
“The locations are defined by their attractive locations in the economically strongest metro regions of Continental Europe, and offer a well-diversified tenant mix that includes mainly mid-market companies,” said Ronny Pifko, Director and founder of BlueRock. “The multi-tenant structure and the focus on mid-market companies as the backbone of Germany’s economy offer a high degree of diversification, and thus optimal risk minimisation as well as a stable cash flow.”
“The proprietary real estate inventories of German mid-market companies offer market players with adequate market access and real estate know-how particularly attractive investment opportunities,” added Nikolai Dëus-von Homeyer, Managing Partner of NAS Invest. “There is considerable potential to be raised by applying professional asset management and by consistently developing the assets, not least in terms of their tenant structure.” The Group’s offices in Berlin and Frankfurt am Main will handle the active management of the properties.
BR-NAS structures its investments in the form of AIFMD-regulated Luxembourg investment funds that are open to qualifying investors, such as institutional investors, family offices and high-net-worth individuals. Additional assets worth 65 million euros are short-listed for acquisition and are currently undergoing a detailed review process.