Develica Deutschland, the AIM-listed property company, has purchased of a portfolio of three office buildings in Germany for €266.3m (£175.4m).
The deal for the Blue Star portfolio reflects and initial yield of 5.87%.
The buildings, which are located in Bonn, Stuttgart and Munich, comprise around 860,000 sq ft and generate €15.6m (£10.2m) of income pa.
In Stuttgart, the German-based company is purchasing a 240,000 sq ft (22,296 sq m) office building that currently produces annual income of €4.78m (£3.14m).
The building is let to Daimler Chrysler Bank a division of Daimler Chrysler AG – on a long lease with options to extend.
In Bonn, Develica is acquiring a 340,000 sq ft (31,587 sq m) high specification building let to Deutsche Telekom, producing an annual income of €7.05m (£4.64m) on a long lease with options to extend.
The Munich property is a 220,000 sq ft (20,438 sq m) office on a high-tech office campus, let to Hewlett Packard GmbH producing annual income of €3.77m (£2.48m) on a long lease with options to extend.
Derek Butler, chairman of Develica, said: “This acquisition, which follows December’s announcement of the acquisition of a substantial retail portfolio, demonstrates our ability to find and purchase high quality investments, as well as reflecting our determination to take a measured approach to our acquisition programme.
“We have now purchased €583m (£384m) of assets in six months”
Last month Develica exchanged contracts to acquire approximately 1m sq ft of retail and logistics properties for a total consideration of almost €135m (£88m).
As a result the fund has achieved acquisitions of €583m (£384m), yielding in excess of 6%, and has a pipeline of €635m (£418m) at different stages of due diligence.
Colliers Stuttgart office and DTZ advised Develica.
References: EGi News 15/01/07
