Tristan’s long-life fund buys Parseval Square office building in Duesseldorf

Located at Parsevalstrasse 7-9 in Duesseldorf North, the city’s largest office submarket, the 26,675 sq m recently refurbished office building is currently approx. 78% let and has a strong mix of 13 international and creditworthy tenants with a WALT of 2.4 years and a strong leasing pipeline.

Ali Otmar, Senior Partner at Tristan Capital Partners, said: “This is the second investment CCP 5 has made in Germany, which continues to be a core market for us. Germany continues to outperform its Eurozone peers, with submarkets such as Dusseldorf proving increasingly attractive to an international investor base. We are seeing pockets of value in the office market in particular, where there is a large amount of ageing stock and substantial demand for high-quality space. Our aim is to capitalise on this by working closely with Barings, drawing on their relationships with existing tenants, their knowledge of the asset and the Dusseldorf market, to lease up the remaining vacancy at Parseval Square.”

Greg Davison, Associate - Investment & Asset Management at Floreat Real Estate, adds:  “This sale demonstrates our ability to turn around significantly underperforming assets in short timeframes, delivering returns which greatly exceed market norms.  A targeted CAPEX plan and re-branding exercise were implemented to help accelerate the leasing pipeline. This strategy proved to be successful, with five new tenants signing in quick succession, facilitating an early sale.”

Chris Gillum, Director of European Cross Border investment at Savills, comments: “We are delighted to have concluded another transaction together with Savills Germany, utilising the Savills network to transact this German asset on behalf of a UK based seller, to a UK based purchaser. With its central location in the heart of Europe and a highly developed infrastructure, Duesseldorf is ideally positioned to continue to prosper as a business location and is drawing increasing international interest.”

Stefan Mellies, Director Investment at Savills, comments: “This is a fantastic deal for both parties involving a strong asset in the Duesseldorf North office sub-market which has benefitted from increasing tenant demand with key drivers being the excellent transportation links and relatively affordable rental levels when compared to other areas of the city and Germany.”