Investcorp sells the KÖ3 office building in Germany in off-market transaction

5 Sep 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.”