Hines Pan-European Core Fund Acquires Werfthaus in Frankfurt - Hines

Hines Pan-European Core Fund Acquires Werfthaus in Frankfurt

Hines, the international real estate firm, has acquired Werfthaus in Frankfurt, for a price of approximately €114 million on behalf of the Hines Pan-European Core Fund (HECF). The building was sold by Tristan Capital Partners; Barings Real Estate has acted as asset manager so far. Werfthaus offers 14,336 square meters of office space and 208 parking spaces at Frankfurt Westhafen. The building’s new anchor tenant is the online platform Check24.

Peter Epping, HECF Fund Manager, said, "We are happy to have secured this attractive investment opportunity for our Hines Pan-European Core Fund. Besides Marienbogen, this is the second investment by the Fund into the Frankfurt office market. Our Fund offers investors a stable earnings profile, consisting of a diversified portfolio. We invest in high-quality properties across major European cities.”

Daniel Reichwein, Head of the Hines office in Frankfurt, added, "The Werfthaus building is recognized for its location in the emerging Westhafen submarket, high-quality furnishings and a unique view of the Main River and the Frankfurt skyline. Our local team has significant expertise in development and asset management. Our aim is to continuously improve the value of the building."

Werfthaus was completed in 2009 according to a design by the architectural firm KSP Jürgen Engel. Located in Frankfurt's Westhafen, it offers flexible office space in an attractive location as well as generous outdoor areas for recreation. The immediate area also offers a wide range of restaurants and high-quality living space.

Hines was advised by P+P Pöllath + Partners, Arendt, REC Partners and PWC. The seller side was accompanied by Greenberg Traurig, PWC and BNP.

About the Hines Pan-European Core Fund (HECF)

The Hines Pan-European Core Fund was set up in 2006 with the aim of providing investors with a resilient income profile derived from a diversified portfolio of high-quality assets located in inner-city locations across major European cities.

The Fund combines disciplined sustainable management policies with a risk-adjusted return profile and has been awarded the European leadership in the GRESB ranking for three years while delivering an average net total return of 8.2% between 2014 and 2018, with an income return of 3.5%.

As of Q3 2019 the HECF portfolio was 97.3% occupied with an aggregate value in excess of €1.4bn. The portfolio of the Fund is currently composed of 21 assets invested in 15 city markets across eight different European countries.

The Fund has continually improved asset level performance of buildings by working in close collaboration with the local Hines teams and property managers and engaging tenants in a variety of ways. An example of this has been the drive to optimize the energy consumption of the buildings, resulting in a 12% reduction in like-for-like consumption since 2016. The total return of 8.4% achieved in 2018 illustrates that sustainability improvements could also be combined with strong performance for Fund’s investors.

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management, including $63.8 billion for which Hines provides fiduciary investment management services, and $60.5 billion for which Hines provides third-party property-level services. The firm has 148 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,362 properties, totaling over 449 million square feet. The firm’s current property and asset management portfolio includes 514 properties, representing over 222 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. Visit www.hines.com for more information.

Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 47 cities in 12 countries. Hines currently has over €18 billion of assets under management in Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.

Since the opening of its site in Germany in 1991, Hines has acquired or developed a total of 42 properties with an overall surface area of over 1.9 million m² for Hines or on behalf of external clients, including properties such as the Main Tower, 160 Park View and the Silberturm in Frankfurt, Zoom and Quartier Südkreuz in Berlin, Hofstatt, Uptown München and OSKAR in Munich, the Überseequartier Nord district in Hamburg, the Benrather Karree and Kö-Quartier in Düsseldorf, and the Postquartier and Kronprinzbau 1+2 in Stuttgart. Hines currently manages property in Germany with an overall value of around €4.2 billion as an asset and development manager.

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