Henley’s advance on Europe continues with office buy

By 15th January 2016Property Week

Private equity real estate investor Henley has bought a 380,000 sq ft site in Essen, north-west Germany, from Ferrostaal for a price believed to be around €50m (£37.5m), Property Week can reveal.

The purchase, completed on 22 December, is Henley’s fourth mainland European acquisition and its largest to date.

The multi-let site comprises two institutional-grade office investments and one mixed residential and office block and is situated just south of Essen city centre in the established mixed commercial and residential location known as Südviertel.

It benefits from easy access to the A40 Autobahn and the inner-city ring road and will be held by Henley360, Henley’s European business.

“We are looking to asset manage and redevelop parts of the property, while proactively managing current tenant relationships,”

Said Henley360’s managing director, Kevin Oppenheim.

“We are happy to confirm that the vendor, Ferrostaal, will be retaining its headquarters in Building 1 on a new 11-year lease.”

Essen is also home to occupiers such as ThyssenKrupp, RWE (the second-largest utility company in Germany), Schenker AG, Eon and Germany’s largest construction company, Hochtief.

“In our opinion, Germany remains a highly attractive market, with the country’s strong economic position making it a safe haven for investors,” said Ian Rickwood, chief executive officer of Henley Investments.

“The German office market in particular continues to provide significant opportunities and this latest acquisition reflects our desire to capitalise on current market conditions within a major economic hub.”

He added that Henley viewed northern Europe as a highly attractive market given the spreads between real estate and bonds, the European Central Bank’s continuing policy on quantitative easing and the current level of the euro.

“We will continue to look for further opportunities that provide strong returns for our investors.”

Hanseatic Real Estate advised on the deal.

15th January 2016 | Article by Rhiannon Bury – Property Week

Read the full article at: www.propertyweek.com