Hines and ÄVWL Acquire Kronprinzbau 2 in Stuttgart for Long-Term Portfolio

(STUTTGART, GERMANY) – Hines, the international real estate firm, has acquired a mixed-use asset in Stuttgart, Germany, for a fund in which Hines and the Ärzteversorgung Westfalen-Lippe (ÄVWL) are jointly investing. The purchase of Kronprinzbau 2 follows the acquisition of Kronprinzbau 1 from Credit Suisse in 2014. The investment of Kronprinzbau 1 & 2 is intended to remain a strategic long-term part of the Hines-managed fund. Hines is responsible for the asset management.

Kronprinzbau 2 is a mixed-use building located in the immediate vicinity of Stuttgart’s main shopping street and promenade Königstraße and the suburban train station Stadtmitte. It provides approximately 8,500 square meters (92,500 square feet) of office and retail space. The entire office space has been leased to LBBW on a long-term basis. Kronprinzbau 2 is also a prime address for individual retailers with a well-balanced tenant mix from the luxury goods segment.

The building was sold by the closed-end fund of the Deutsche Fonds Holding AG (DFH). Further business consulting was provided by Colliers International, Stuttgart. Technical due diligence was provided by REC. On the seller side, Grunert-Albrecht, Duisburg/Hamburg provided tax and legal advice. On the buyer side, Pöllath + Partners, Clifford Chance Luxembourg, and PwC provided legal and tax consulting. Financing of Kronprinzbau 2 is provided by ING.

With the acquisition of Kronprinzbau 1 & 2, Hines was able to secure a prestigious ensemble of buildings with high location potential right in the heart of Stuttgart’s city center. The location has developed into a significant economical part of the city and is valued by office and retail tenants, as well as consumers.

Dr. Andreas Kretschmer of the ÄVWL commented, “For us, such a significant object in the heart of the city is the optimal subsequent investment in immediate proximity of this prime location. Thus another core asset was added to the fund, which, especially in the long run, is a secure investment in one of Germany’s largest economical metropolis.”

Hines Senior Managing Director Alexander Möell also commented, “Kronprinzbau 1 + 2, in particular as one unit, are without a doubt outstanding properties and feature an excellent portfolio of tenants. We feel absolutely confident about both investments.”

Ärzteversorgung Westfalen-Lippe (ÄVWL) is an institution of the Ärztekammer Westfalen-Lippe. It is one of Germany’s largest pension funds. With a capital investment volume of currently approximately €11.9 billion, including real estate investments of approximately €2.5 billion (equity at fair value), ÄVWL has been providing retirement benefits for more than 55,000 members and pensioners. Visit www.aevwl.de for more information.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 199 cities in 19 countries. Hines has $87 billion of assets under management, including $43 billion for which Hines provides fiduciary investment management services, and $44 billion for which Hines provides third-party property-level services. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,100 properties, totaling over 346 million square feet. The firm’s current property and asset management portfolio includes 531 properties, representing over 186 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world.