STUTTGART, GERMANY—The Mercedes-Benz Bank Building here is the latest addition to the Hines Global REIT Inc. portfolio. Hines bought the property from DDE 24 Ltd. for 51.9 million euros, or US$69.8 million, according to an official filing.
“The Mercedes-Benz Bank Building is a high-quality asset with a strong tenancy that complements Hines Global REIT's existing portfolio,” comments Charles Hazen, president and CEO of Hines Global REIT. “Germany's economy is one of the strongest in Europe, and by purchasing this asset, we have increased the geographic diversity of the REIT to a fifth country outside of the US.”
Mercedes-Benz Leasing GmbH, a subsidiary of Mercedes-Benz Bank AG, leases the entire 263,038-square-foot property as its headquarters. The 10-year-old asset consists of two separate six-story buildings, including two ground-level cafeterias and two levels of below-grade parking, located at Siemensstrasse 7 in the north end of Stuttgart.
Alexander Moell, senior managing director of Hines in Germany, says, “We are pleased that Hines Global REIT has recognized the strength of the German market and has made its first acquisition here. This property was particularly appealing due to its location near Stuttgart's CBD, its access to public transportation as well as its high visibility.”
Colliers Bräutigam & Krämer brokered the transaction, and the local LBBW, Landesbank Baden-Wrttemberg provided debt financing.
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