(Dusseldorf, Germany) — Hines Pan-European Core Fund (HECF), an investment vehicle of international real estate firm Hines, today announced the sale of office property Metropolitan in the central business district of Dusseldorf to R+V Versicherungsgruppe. The asset has been in HECF's portfolio since 2011 and offers around 7,000 sqm of fully let office space on seven floors. The anchor tenant is patent and law firm Cohausz & Florack. The parties agreed to keep the purchase price confidential.
Peter Epping, HECF Fund Manager, says: "The sale of Metropolitan is a successful example of our strategy to create long-term value through active asset management and selectively realise profits through timely disposals. Following the restructuring of the tenancy, it was the right time now to take advantage of the extraordinarily strong German investment market. We are delighted with the value growth and double-digit returns we have created for our investors with this property".
Completed in 2003, Metropolitan is particularly impressive because of its location in the immediate neighborhood of Dusseldorf Schauspielhaus on Gustav-Gründgens-Platz. The property is characterized by timeless and top-quality architecture, which leads to a high recognition value of the building. The tenants appreciate the individually adapted floor plans, which allow for different space sizes and usage concepts.
Hines was advised by Colliers and P+P Pöllath + Partners. The buyer side was accompanied by GSK Stockmann/Frankfurt (Legal) and REC Partners GmbH (Technical).
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.
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.
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.