GE Real Estate has acquired more than 1.8 million sq. ft. of chiefly commercial space in several German cities. The portfolio is valued at almost $295.2 million and is consists of 70% office, 20% retail and 10% residential properties.
The sellers were a number of institutional investors. Amounting to 1.8 million sq. ft. in 31 properties, the assets are concentrated in the former East German cities of Berlin, Saxony and Thüringen. The portfolio extends into Western Germany as well, including properties in Hamburg, Düsseldorf and Munich.
GE Real Estate is interested in acquiring properties in the areas of former East Germany that it feels will develop more quickly than the nation as a whole, according to Rainer Thaler, managing director at GE Real Estate in Germany.
“The cities of Leipzig, Halle, Dresden, Jena and Erfurt are currently enjoying a continuous upswing, and the forecast for these cities points to above-average economic growth,” Thaler says. “We are glad that we were able to acquire this portfolio and thereby strengthen our presence in Germany, especially in the eastern part of the country.”
P+P Pöllath + Partners, Colliers International and AtisReal advised GE Real Estate on the transaction. Jones Lang LaSalle and Taylor Wessing advised the sellers.