LaSalle makes first acquisition for Testina mandate
LaSalle has acquired Barckhausstrasse 12-16, a state-of-the-art office building in one of the most established submarkets of Frankfurt. The asset was acquired by LaSalle on behalf of the investment foundation Testina and is the segregated mandate’s first investment in Germany.
The property, which has been recently extensively modernised, has a leasable space of 5,745 square metres, and consist of a mixture of office, residential and storage space. Located in the Westend, one of the most sought-after office and residential locations in Frankfurt, the asset also has excellent infrastructure links, with direct access to public transport via numerous metro lines and is in walking distance to several cultural, food and education facilities. It is majority let to a grade A tenant on a long-term basis, with further upside potential.
Mathias Malzbender, Fund Manager at LaSalle Investment Management, said: “I am delighted with the seed purchase of the LaSalle Testina mandate. We have acquired a modern and flexible property with good technical building fundamentals in one of the most established and successful office submarkets in Frankfurt - which also happens to be one of Germany’s top five office markets.”
Westend is a dense, mixed-use district, predominantly consisting of offices and upmarket residential buildings, with accommodation costs at some of the highest levels in the city. Frankfurt is one of the largest office investment markets in Germany; its role as an international financial centre and prominence of its occupier base has historically made it popular with investors. It is Germany’s main financial centre and the home of the European Central Bank and to large financial groups such as Deutsche Bank, Commerzbank and the Helaba Landesbank.
Karim Habra, Head of Continental Europe at LaSalle Investment Management, added: ‘The acquisition is in a prime office location with excellent accessibility and infrastructure. Not only does it align with our strategy of investing in core office and retail on a long term buy and hold basis, it also has essential sustainability and resilience features. These environmentally-friendly elements are closely linked to other secular, long-term drivers of real estate demand such as demographics, technology, urbanization and environmental sustainability (DTU+E), and a combination of these factors make this asset a great fit for the mandate.”
Testina is a Swiss investment foundation for international real estate investments. Testina was founded in 2005 by two large Swiss Pension Funds. The mandate is managed by LaSalle and targets continental European real estate. Its strategy is to invest in core office and retail properties in vibrant and growing cities in the main Eurozone countries on a long term buy and manage basis.
LaSalle was advised by CBRE (broker) and Jones Day (lawyers).