Hines has acquired a second “high-potential” mixed-use asset in Stuttgart for a fund which it jointly set up with Ärzteversorgung Westfalen-Lippe (AVWL).
The purchase of Kronprinzbau 2 from the closed-end fund of the Deutsche Fonds Holding AG (DFH) follows the acquisition of Kronprinzbau 1 in April 2014 from Credit Suisse.
Kronprinzbau 2 is a mixed-use building in the immediate vicinity of Stuttgart’s main shopping and Königsallee shopping street.
It has about 90,000 sq ft of office and retail space. All office space has been leased long term to LBBW.
The Kronprinzbau 2 currently provides a balanced mix of tenants from the luxury segment.
Dr. Andreas Kretschmer of the ÄVWL said: “For us, such a significant object in the heart of the city is the optimal subsequent investment in immediate proximity of this prime location. Thus another core asset was added to the fund, which, especially in the long run, is a secure investment in one of Germany’s largest economical metropolis.”
Hines senior managing director Alexander Möell added: “Kronprinzbau 1 and 2, in particular as one unit, are without a doubt outstanding properties and feature an excellent portfolio of tenants. We feel absolutely confident about both investments.”