Barings LLC, one of the world’s largest diversified real estate investment managers, announced today that it has acquired, through a forward funding, a fully pre-let hotel and office development in Stuttgart, Germany, on behalf of a separate account mandate “SIS” run for Stuttgarter Insurance Group. The project is being developed by weisenburger Projekt GmbH.
Due to complete construction in Q4 2020, the property will comprise a brand new ca. 7,000 sq m hotel with 198 rooms and ca. 3,800 sq m of prime grade A office space over a common underground garage.
The hotel component has been pre-let to NOVUM Hospitality on a 25-year lease, and will be operated as a niu hotel (the niu Kettle), while the office has been let entirely to HWS GmbH & Co KG on a ten-year lease.
The property is located directly next to the government council in the Stuttgart borough of Vaihingen – 10 km south west of the city centre. The asset also benefits from excellent connectivity via public transport and the road network, with Stuttgart Airport accessible in 15 minutes via the A8 motorway. The nearest over- and underground station are 270m away and Vaihingen railway station is a five-minute walk, where trains into the centre of Stuttgart take 15 minutes.
Christoph Wittkop, Managing Director, Real Estate Country Head – Germany at Barings, said:
“Once completed, the property will be a modern building that meets the growing demand for hotel beds and office space in the Stuttgart area. The microsite of the property is currently undergoing major development, including the construction of new office properties for Daimler and Allianz. The property will provide long-term stable earnings, and therefore supports our customer’s German and European core strategy.”
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe for Barings, said:
“We have a long standing track record acquiring and managing buildings in Stuttgart and we are very positive on this particular submarket development. Aside from Germany we are very interested in acquiring core office, hotel or logistics buildings in Sweden and Finland that will deliver some value enhancement possibilities over a longer holding period for this separate account.”
Source : Barings