01/11/2022 | Press release | Distributed by Public on 01/11/2022 12:11
The property is part of the portfolio of the institutional real estate special fund "Savills IM Real Invest 1", a club deal which was launched in 2013 by Savills IM on behalf of three German insurance companies. Following this sale, the fund holds ten properties in nine German cities including an office property under construction.
The VTG Center was built in 1996 and is located in the Hamburg-Mitte district of Hammerbrook. The four interconnected building sections, each with its own entrance, comprise a total of approx. 22,750 sqm of rental space across eight floors. The building is let on a long-term basis and has excellent visibility and infrastructure connections. The surrounding area is characterised by a heterogeneous use of residential, office and commercial buildings.
Tim Ulrich, Deputy Head of Transaction Management Germany at Savills IM, says:
There is still a high demand for office space in Hamburg, as well as a low vacancy volume. Large spaces in particular have reduced availability which tightens supply, especially for large occupiers. The "City South" submarket benefits from its central location and excellent infrastructure, and has developed from a back-office location into an urban district which is very well connected to Hamburg city centre.
Markus Bartelmeß, responsible portfolio manager of Savills IM Real Invest 1 at Savills IM, adds:
The VTG Center was acquired in 2015 for our real estate special fund. The transaction is the first sale of the fund. By selling at this point, we are realising the increase in value of the property for our investors. The freed-up capital is to be reinvested promptly in modern, sustainable office properties.
Advising on the transaction on behalf of Savills IM were Norton Rose Fulbright (legal), KPMG (tax) and CBRE (technical). CBRE and JLL acted as brokers.