23. September 2016

GxP German Properties invests in a 9,000 m² office complex in Hanover

• Hanover office complex boasts a total rental area of more than 9,000 m²
• Purchased for a high seven figure sum
• Attractive double digit initial rental yield
• Vacancy rate of approximately 25 per cent offers excellent value-add potential
• Hanover is an attractive commercial location with a low office vacancy rate

GxP German Properties (GxP) has successfully completed the acquisition of an office complex in Hanover. The value of the property lies at the high end of the seven-figure range, with an initial rental yield in the double-digit percentage area. The property was financed in conjunction with an institutional investor.

The office complex is located in Rendsburger Strasse in the borough of Bothfeld-Vahrenheide in the north-east of Hanover, the state capital of Lower Saxony. It boasts a total rental area in excess of 9,000 m².

The property currently has a vacancy rate of about 25 per cent and therefore offers lucrative opportunities for further value appreciation through the proactive in-house asset management of GxP. The current tenants include the local administration, with the weighted average unexpired lease term standing at roughly five years. The property, which was completed in 1990, is in a good condition and requires only little further investment.

Hanover is one of the most attractive investment locations for commercial properties in Germany. The city is home to more than half a million people and is the venue for major industrial and commercial trade fairs such as CeBIT and HANNOVER MESSE. Demand for high-quality commercial properties is correspondingly strong, which results in a low average vacancy rate of 4.4 per cent.

Johannes Meran, CEO of GxP: ‘We regard Hanover as an extremely exciting investment location, especially due to the value potential caused by high demand for office space. The current acquisition, which we have made in conjunction with an institutional investor, demonstrates our strong access to attractive properties in our key segments of Core+ and Value add in selected mid-sized German cities. We also see that the property offers considerable potential for further value appreciation.’

GxP German Properties AG

With its headquarters in Berlin, GxP German Properties focuses on the Acquisition, Ownership and Management of office and retail properties in Germany. The investment strategy focuses on attractive commercial properties in the Core+/Value add segments in metropolitan regions and selected mid-sized cities in Germany. The company’s strategy is to leverage significant appreciation potential through proactive portfolio management whilst safeguarding sustainable rental revenues at the same time. To this end, it draws on both its many years of experience in the property market and its extensive network. Together with institutional investors, the company has invested in a portfolio of high-value properties worth around €180 million and manages the properties as part of its asset management business.

Contact details:

GxP German Properties AG
Europa Center 19. OG
Tauentzienstr. 9
D-10789 Berlin
TEL: +49 (0)30 886 267 40
FAX: +49 (0)30 886 267 411
E-MAIL: info@gxpag.com

Kirchhoff Consult AG
Herrengraben 1
20459 Hamburg
TEL: +49 (0)40 609 186 65
FAX: +49 (0)40 609 186 60
E-MAIL: gxp@kirchhoff.de