Bahrain, 5 September 2022 – Investcorp, a leading global alternative investment firm, today announced that its European Real Estate business has sold the Kö3 office building, part of the KöCampus, at Kölner Straße 3 in Eschborn, Germany, in an off-market transaction with CONREN Land.
Built in 1992, KöCampus comprises three adjacently-located, self-contained office buildings (Kö3, Kö10 and Kö12) with an aggregate size of approximately 39,000 m2. Each of the three properties is made up of seven office floors above ground and two basement levels used for parking and storage. Located in Eschborn’s Gewerbegebiet Süd, seven miles northwest of Frankfurt CBD, the properties are in a well-connected commuter location and near Frankfurt’s main train station.
Over the last five years, the Eschborn market has experienced significant investments through the refurbishment of existing stock and the construction of new developments. The area is expected to benefit from further investments with the Regionaltangente West suburban rail line due to complete in 2026, providing a direct cross-link to Frankfurt Airport.
Following significant refurbishment and modernization by the Frankfurt-based project developer Cilon in 2017/18, Investcorp acquired KöCampus (Kö3, Kö10 and Kö12) in July 2018. Leasing momentum and tenant retention have been very strong since Investcorp’s acquisition. As of August 2022, following pro-active asset management, the office space in all three properties is fully leased to a diversified range of 40 national and international tenants.
The Kö3 office building comprises a total leasable area of around 11,500 m². The diversified tenant mix includes GLS IT Services GmbH and 11 other well-known companies from growth sectors such as IT and consulting. Of the total leasable area, around 10,500m² is office space and around 1,000m² is warehouse and ancillary space.
The sale of Kö3 follows the acquisition by Investcorp earlier this year of a Flemish Government Office and Marsh’s Belgian headquarters in Brussels, as well as IFAD’s headquarters in Rome. Investcorp’s European Real Estate business has to date acquired approximately €1.2 billion of real estate assets across the U.K. and Europe. Investcorp’s European portfolio now consists of 10 office properties across Germany, the Netherlands, Belgium, Italy and the U.K., as well as 35 industrial assets in the U.K
Neil Hasson, Managing Director – Head of Investcorp European Real Estate, said: “We continue to see tremendous opportunity across our portfolio across Europe, including Germany. The Kö3 office building is a fully-stabilized, high-quality asset located in a market with enormous potential. Having realized our business plan, we are pleased to be selling the property to CONREN Land. We look forward to continuing to invest in the Frankfurt area and growing our portfolio across Europe.”
Khulood Ebrahim, Real Estate Specialist, added: “Germany is a market where we continue to see investor interest and we are pleased to announce this exit today. Our European Team continues to see tremendous opportunity across our portfolio within Europe as we focus on high-quality, value-creating assets. The Kö3 office building within KöCampus was no exception.”
Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure and insurance asset management. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach. In January 2022, Investcorp issued its 2021 Responsible Business Report which outlines its Environmental, Social, and Governance (ESG) highlights for 2021 and specific initiatives the Firm implemented to meet its goals: https://www.investcorp.
Investcorp has today 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2022, Investcorp Group had US $42.7 billion in total AUM, including assets managed by third party managers, and employed over 480 people from 50 nationalities globally across its offices.