Deutsche Investment just acquired a mixed residential/commercial building with a total lettable area of around 4,100 square metres in Leipzig. The acquisition was completed for one of the investment manager’s single mandates.
The property consists of a building complex near Johannapark in the Zentrum-West locality in Leipzig’s inner city. Featuring a Belle Époque façade design, it was constructed as a mixed residential/commercial building in 1996, and has a sound building fabric. Its total lettable area of around 4,100 square metres divides into 42 residential and eight commercial units. In addition, tenants have the use of 40 parking spots in the underground car park. Virtually all of the units are occupied.
“The property is located in a very sought-after location. This is explained by its proximity to the city centre and to Leipzig University – either one being mere minutes away by public transportation. When you put the transaction in context with the economic strength of the city of Leipzig and its demographic trend of recent years, the acquisition perfectly complements the existing portfolio of our single mandate,” explained Tamay Demirel, Senior Transaction Manager of Deutsche Investment Kapitalverwaltung AG.
During the transaction, Deutsche Investment was advised on legal aspects by the law firm of GSK Stockmann, and in regard to the technical due diligences by CBRE. For HGA Capital Grundbesitz und Anlage GmbH, the selling party, JLL acted as estate agent. Legal counsel to the seller was provided by CMS Hasche Sigle.
For Deutsche Investment, the acquisition of this property was motivated by its optimisation potential. Pierre Hofmann of Principal Asset Management at Deutsche Investment Kapitalverwaltung AG, elaborated: “The property currently qualifies for energy efficiency class C. It is perfectly reasonable to consider this a sound building standard. And yet we see potential for enhancing the property’s value and occupier amenities. One of the aspects that will play a key role in the long term is the digitisation of the building’s mechanical and electrical engineering. For example, we use smart metering to raise the level of transparency in regard to individual energy consumption and with it the sensitivity of each household, which ultimately helps to lower the heating and operating costs in the best interest of the tenants.”