AEW announces the acquisition of Trinity,a c.22, 000 sqm multi-let office property located in Cologne’s Zollstock district. The asset was acquired on behalf of a separate account mandate for an institutional German investor. AEW has managed the account since 2017 and aims to implement an active core to core plus strategy across Europe’s most attractive investment markets. AEW purchased the asset from a Luxembourg special fund.
The asset is located in close vicinity to Cologne’s city center and benefits from direct access to public transport with metro and bus stations situated in front of the building. Parkstadt Süd is the largest urban development project in Cologne comprising c. 265 acres and located directly adjacent to the asset and will significantly reshape the area upon completion.
Trinity was built in 1994 and offers c.22, 000 sqm of lettable office space. It is currently 90% let to a variety of tenants, of which around 70% are public bodies offering strong covenants. AEW has identified an opportunity to leverage upcoming lease events and grow rents which are low compared to the market level.
Matthieu Samaran, Director of Investment at AEW, said: “The Cologne office market has developed very positively in the recent years and is highly resilient, benefiting from the city’s dynamic and well-diversified economy. The property offers a long-term, secure rental income with attractive reversionary potential. The future development of the Parkstadt Süd will also significantly improve the attractiveness of this micro-location over the medium-term.”
Lars-Henning Pylla, Separate Account Fund Manager at AEW, commented: “Cologne can still be considered as one of Germany’s relatively underrated investment spots with future growth potential thanks to high demand and larger-scale development projects covering entire districts. As Cologne’s office vacancy recently dropped below the 3%-mark, we expect to benefit from actively decreasing the property’s under-rented position.”
Source : Company