City of Hamburg Completes EUR 205 Million Sale Leaseback of 52 Properties

Ad-Hoc-News - November 28, 2006

The Frankfurt-based DIC Group (Deutsche Immobilien Chancen) has acquired the real estate portfolio from the City of Hamburg, known as Primo 3. It consists of 52 commercial properties with a total floor space of around 176,000 sqm. The properties are located all over Hamburg. The total investment volume is around 205 million euros. The listed DIC Asset AG has a 20% share of the transaction. The transaction is still subject to the approval of the Senate and the Parliament of the Free and Hanseatic City of Hamburg.

80 percent of the portfolio consists of office properties. The remaining 20 percent consists of other types of commercial usage, such as retail and storage area. The vast majority of the properties are let long-term to public authorities and the local authorities of the City of Hamburg. In addition, there are several properties that have a development potential where project developments and refurbishments are concerned.

In the coming years, DIC will successively define the development potentials and will present plans for suitable construction projects. Prime properties in the portfolio include, for example, the centrally located buildings in Dammtorstraße/Große Theaterstraße as well as the local courts and revenue offices in the Wandsbek, Harburg and Bergedorf districts. In future, with its new asset and property management company, DIC will also maintain an office in Hamburg. Sphere: Related Content