LaSalle sells property on behalf of LaSalle E-REGI to the City of Stuttgart
MUNICH (September 11, 2019) — LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has sold the property Torstrasse 15 to the City of Stuttgart. The almost fully occupied property was part of the portfolio of the LaSalle E-REGI.
- Multi-tenant property has a gross lettable area of 6,313 sqm
- Central and strategically advantageous location near the Stuttgart town hall
- Buyer State Capital Stuttgart will be the future main user
Raised in 1989 for the private bank Ellwanger & Geiger, and currently used predominantly as office accommodation, the six-storey building has a gross lettable area of 6,313 sqm and 49 underground parking spots. Located in a prominent downtown corner position on Torstrasse and the B14 federal route, near the town hall and the main shopping district along Königstrasse, the property benefits from excellent connections to public transportation. The current main tenant of the customizable multi-tenant building (including office, retail and restaurants) is the Barmer GEK health insurance.
The property was acquired by LaSalle in early 2017 for its open-ended pan-European real estate fund LaSalle E-REGI. The fund with a current AUM of ca. €710 million aims for stable income return from a diversified core portfolio (office, retail, logistics and hospitality) in transparent markets. The investment strategy is based on a quantitative model, the European Regional Economic Growth Index (E-REGI), which has been developed by LaSalle since 1999 and identifies the cities and regions across Europe that have the greatest economic growth potential over the short- to medium-turn.
Uwe Rempis, Fund Manager of LaSalle E-REGI , said: “The disposal is an excellent example for active fund management and reflects that opportunistic strategies can be successfully employed to generate profits. During its holding period, Torstrasse 15 generated highly satisfactory returns for our fund. The market in Stuttgart is currently demand-driven. The city, being one of the most attractive office locations in Germany and indeed Europe as a whole, has a low vacancy rate and limited options to expand because of its topography. In this situation, selling the property to the City of Stuttgart was the right decision in the best interest of our investors. Seizing opportunities to sell for the benefit of our investors has been part of our strategy for the LaSalle E-REGI fund for a long time: As early as 2014, we took advantage of a similar opportunity with the disposal of the Junghofstrasse asset in Frankfurt.”
LaSalle was advised by Beiten Burkhardt (Legal). E & G Real Estate acted as advisor to the buyer.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages more than $69 billion of assets in private and public real estate property and debt investments as of Q3 2020. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit http://www.lasalle.com, and LinkedIn.
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