Austria's Immofinanz Group has announced the sale of its A1 high-street retail property in Hamburg, Germany to Aachener Grundvermögen Kapitalanlagegesellschaft. Although the companies agreed not to disclose the transaction value, Immofinanz said the price substantially exceeded the property's carrying value.

The disposal is part of the company's efforts to optimise its real estate portfolio and to focus on office, logistics and residential in Germany, it added.

The building was extensively renovated in 2006 and provides 6,400 m2 of retail space at a prime inner-city location. It is leased to companies such as Adidas, Fossil and WMF through long-term contracts. The transaction is expected to be completed in March 2011. Neither party was represented in the deal.

'Hamburg is a top European location and Germany a key core market for Immofinanz,' said chief executive Eduard Zehetner. 'Our strategy is to purchase and develop properties that have a potential for value growth and to then sell at the right time. With this transaction, we have now realised the increase in value.'