Irish private investor company Signature Capital has bought the Raffay Smart City building in Hamburg for €60m (£40m) at a yield of 6.79%.

The 275,000 sq ft building it located on Friedrich-Erbert-Damm and is let to seven tenants including Peugeot, Smart and UCI Multiplex with average unexpired lease lengths of 17 years.

The company, which is headed by former investment bankers Ciaran McNamara and Enda Woods, has been active in the German property market for the last two years and now has a German portfolio valued at more than €400m (£268m).

Last November it raised more than €50m (£33m) of equity from private investors to co-invest in German commercial property, which with bank debt, will create a portfolio value of more than €250m (£168m).

Signature’s purchase of Raffay Smart City follows its deal in June when it bought the Galleria Kaufhof Department Store in Berlin for €61.3m (£41m).