Corestate Group, a specialist private equity real estate investor based in Zug/Switzerland, has announced the acquisition of Rund Carré in Hanover from HSBC Trinkaus Real Estate for EUR 25.5 mln. The purchase price of the recently developed office and retail asset reflects an initial yield of 7.9%. A German bank provided financing for the asset.

Rund Carré comprises a fully-let, 14,000 m2 mixed-use scheme, which was completed in 2006. It provides 8,377 m2 of office accommodation long let to large German corporates. The remaining space is mainly arranged as good quality retail units. Located within close proximity of Hanover’s main train station, it is well-connected to public transport and only a short distance to Hanover’s International Airport.

Corestate founder Ralph Winter said: ' The Rund Carré asset represents a prime income producing scheme, let to strong covenants, and we believe that we have secured this asset at an attractive price. Furthermore, Hanover is an attractive investment market with strong local economic fundamentals which compare favourably to the national average in Germany.'

Corestate, which has partner offices in Frankfurt, London and Luxembourg, was advised by Fürst Immobilien Hannover and Angermann Global Property Alliance.