Union Investment has acquired Degerloch Office Center (DOC) 1 and 2 at Löffelstraße 40 and 34-38 on the southern fringe of the city center for Stuttgart, Germany, via a forward funding deal.
The acquisition will be added to the holdings of open-ended real estate fund Unilmmo: Deutschland. The vendor is Unmüssig, a developer based in Freiburg, Germany. The purchase price was €340 million ($347 million).
“On completion in 2023, DOC 1 and DOC 2 will be the most modern office buildings in Stuttgart’s Degerloch submarket. They enjoy a visible location in this established submarket with good public transport links and are therefore very well positioned to benefit from the medium-term rent growth predicted for Stuttgart, with its thriving economy,” said Alejandro Obermeyer, head of investment management DACH at Union Investment.
The DOC 1 development project involves the extensive refurbishment of an office building dating from 1989. About 24,200 square
