Aurelis Real Estate from Eschborn has sold a portfolio of 32 mixed-use commercial properties with around 538,000 square meters of rental space and about 38 million euros of rental revenues to Swiss Life Asset Managers. The properties make up the starting portfolio of the new open real estate special AIF’s CREFG IV, which is managed by BEOS AG.
The parties have agreed not to disclose the purchase price. Rothschild & Co acted as financial advisor to Aurelis and Clifford Chance provided legal advice.
The purchase agreement is subject to the usual closing conditions being met and the approval of the competition authorities. The transfer of the entire portfolio is expected to take place by the end of the first quarter of 2019. The bidding process, in which numerous national and international investors participated, began in summer 2018.
The portfolio includes commercial properties from the warehouse/logistics, office and light production sectors as well as mixed-use business parks and real estate that has been converted for commercial use. The properties are located in the metropolitan regions of Hamburg, Hanover, Berlin, Rhine/Ruhr, Rhine/Main and Munich as well as in various locations in Baden-Württemberg. The tenants are large corporations and medium-sized companies. The occupancy rate is around 95 percent and the weighted average lease term is more than five years.
Aurelis’ Asset & Property Management will continue to manage the properties for the time being.
“As expected, the portfolio has been met with great interest on the market,” sums up CEO Joachim Wieland. “With BEOS and Swiss Life Asset Managers, we have now found buyers who can assess this asset class and who are looking for exactly this type of well-rented mixed-use commercial properties for their institutional investors. In addition, they are known as professional and reliable partners for their tenants.”
Wieland views the transaction as a logical part of the Aurelis strategy: “With the current transaction, we are now implementing what has always been an integral part of our business activities: selling properties whose upside potential we have realized. We will continue to focus on the aquisition of mixed-use commercial real estate, in which we can apply our expertise in the redesign of rental space, in building construction and in land development. In this way, we will keep on offering our customers tailor-made solutions and creating value enhancement for Aurelis.”