The office buildings are located in Frankfurt, Munich, Hamburg, Dusseldorf, Stuttgart, Bonn, and Karlsruhe. The properties have a strong investment-grade tenant base and long-term leases, according to GE.
GE Real Estate Germany's managing director Rainer Thaler says the investment is the first sizeable commercial real estate transaction the company has made in Germany and also is its first foray into the regulated funds market. The fund provides "a base vehicle for future investments," he says.
GE did not reveal the initial yield on the investment. Research from CB Richard Ellis shows yields in Frankfurt for prime office properties in the 5% range.
GE Real Estate Germany will manage the fund as iii-investments. Property Partners advised GE Real Estate with regard to the transaction. Freshfields and Pöllath and Partners was GE's legal advisor.
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