HAMBURG, Germany, Dec. 21, 2021 /PRNewswire/ -- Funds managed and controlled by Starwood Capital Group, through a JV with operating partner CELLS Group, have sold two Hamburg office properties, Sachsenkamp and Kieler Park, with a total rental area of 22,900 sqm on December 1, 2021. The parties initially acquired the portfolio in December 2017. Both Sachsenkamp and Kieler Park were sold to European institutional investors for undisclosed purchase prices.
Federico Bianchi, Managing Director at Starwood Capital commented: "The high degree of investor interest in these properties confirms that well located and managed office assets continue to be in demand. Over the past four years, our value-add strategy for both properties was focused on securing high-calibre tenants of superior covenant strength, including public sector entities and blue chip national and international corporates."
Thomas Ostermann, Managing Director at the CELLS Group added: "Our hands-on asset management approach allowed us to successfully re-let under-rented space at market levels, achieving full occupancy on both assets within just two years and securing a considerable increase in net operating income. Both properties have proven very resilient throughout the pandemic and did not suffer any rent arrears."
Sachsenkamp is a 6,700 sqm, four-storey office building, developed in 1991 and part-renovated in 2013. The property is fully let, with the main tenant being an international pharmaceutical company with a top credit rating, occupying c.40% of total leasable area. The Hammerbrook S-Bahn station is only a short walk away from the property.
Kieler Park is a 16,200 sqm office complex consisting of four buildings, all developed in 1994. The property is fully let to a diversified tenant roster, the largest occupier being a publicly listed German manufacturing company. The complex is located in Hamburg's Eimsbüttel submarket within a ten-minute walk from the lively Osterstraße and close to the "Diebsteich" train station, which will undergo a major expansion over the coming years.
Starwood and CELLS Group received legal advice from GSK Stockmann and technical advice from CBRE. The buyers received legal advice from P + P Pöllath + Partners, technical advice from WBRE and environmental advice from Arcadis. CBRE acted as intermediary.
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $65 billion of capital, and currently has over $105 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $76 billion of capital since inception and manages a portfolio of over $21 billion across debt and equity investments. Over the past 30 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
About the CELLS Group
The CELLS Group has been developing, realizing and managing residential and commercial properties in Germany for more than 25 years.
An experienced team of more than 100 employees in Berlin, Munich, Frankfurt am Main, Hamburg, Düsseldorf and Luxembourg ensures consistently high quality and sustainability of the real estate portfolio. The operational strength and reliability make the CELLS Group a recognized and renowned business partner for tenants, service providers, private investors, family offices and institutional investors.
Since it was founded, the CELLS Group has bought and implemented projects with a total volume of more than 3.6 billion euros.
SOURCE Starwood Capital Group