AEW, on behalf of the AEW City Office Germany fund, has acquired an office building on Siegburger Straße in Cologne, Germany, from LOANCOS Group. A sales price was not disclosed.
AEW’s City Office Germany fund is primarily focusing on identifying properties offering value potential in either long-established or developing areas within Germany’s top seven metropolitan cities.
The multi-tenant property, which offers 8,600 square meters (93,000 square feet) of modern office space, was built in 2008 and is almost fully let. The building is located in the Deutz port area of the city, which is currently undergoing a regeneration into a new city quarter as part of Cologne’s urban development plan.
“This office location on the right bank of the Rhine has transformed over recent years and is underpinned by Cologne’s wider fundamentals, such as its continuously decreasing vacancy level of below 4 percent, which makes it such an attractive market to invest in,” said Sebastian Grobe, director of acquisitions for AEW in Germany. “Due to its accessibility and the quality of the location, we believe that the office market in Deutz has a positive momentum behind it that we are well-placed to capitalize on for this fund.”
