Develica Deutschland has bought a €266.3m (£176m) office portfolio in Germany at an initial yield of 5.87%
The AIM-listed German property company bought the portfolio – known as Blue Star – from an unnamed vendor. It comprises three buildings in Bonn, Stuttgart and Munich, which total around 860,000 sq ft (80,000 sq m).
Tenants include Deutsche Telekom, Daimler Chrysler Bank and Hewlett Packard. The portfolio has a yearly income of €15.6m (£10.3m).
Derek Butler, chairman of Develica, said it had bought more than €583m (£385m) of assets in Germany in the last six months, yielding more than 6%.
Last month it exchanged contracts to buy around 1m sq ft (9,290 sq m) of retail and logistics properties for almost €135m (£89.2m). Butler said it had a further pipeline of €635m (£419.8m) at different stages of due diligence.
Colliers CRE's Stuttgart office and DTZ advised Develica.