Tristan Capital Partners has closed five property acquisitions in Germany totalling over €300 mln, the pan-European investment manager announced at Mipim on Thursday.
Tristan said the recent succession of acquisitions takes the combined value of its transactions in Germany to €1.2 bn in the past 12 months.
Ali Otmar, senior partner and deputy head of investments at Tristan, said: ‘Germany continues to be strategically important for us and has typically represented around a quarter of the deals we have done across both opportunistic and core plus fund series.
‘The transactions we have completed over the last twelve months show that there are still interesting opportunities, but with a 17-year track record of investing in Germany, we know that this is the point in the cycle where watching supply at a local market level and maintaining our discipline is critical.’
The five new deals carried out by Tristan-managed funds Episo 4 and CCP 5 include the acquisition of the Access Office Center in Frankfurt for €81 mln; a multi-purpose office building in Heidelberg’s Bahnstadt for €64 mln; a portfolio of seven offices across Dusseldorf, Essen, Mulheim an der Ruhr and Neuss; Hery Park, a retail park with logistics in Bavaria for €53.5 mln; and Eurocenter, a hotel/office scheme in Dusseldorf for a total development cost of €70 mln.
Commenting on market conditions in Germany, Otmar said: ‘We are cautiously optimistic about the outlook for Germany and we are still seeing interesting opportunities despite the macro-economic headwinds. Germany is further into the “growth phase” of its cycle than the rest of Europe, but just as countries within Europe are moving at different speeds, so too are German cities.
‘As with other European markets, yield compression has been the dominant value driver in Germany, but if you look at the occupier market, all major cities have been experiencing rental growth ranging from 1.5% p.a. in Frankfurt to 8.5% p.a. in Berlin.’
Over the past year, Tristan-managed funds have closed a total 11 deals in Germany. In addition to the five recent transactions, they have acquired the Deutsche Telekom complex in Sternengasse, Cologne, Werfthaus in Westhafen, Frankfurt and Parseval Square in Dusseldorf, bringing the total investment volume to €550 mln in the last 12 months.
In the same period, Tristan funds have disposed of Garden Tower in Frankfurt, Schutzenquartier in Berlin, a logistics portfolio across Germany and Rathaus Mitte Berlin for a total of €635 mln.
To date, Tristan-advised funds have completed €4 bn of acquisitions in Germany.