Sunday, February 22, 2009

German State of Hesse Resumes EUR 400 Million Sale Leaseback of 35 Public Buildings

PropertyEU - July 7, 2008

The German state of Hesse is putting the Leo III property portfolio back on the market, Minister of Finance Karlheinz Weimar (CDU) told newspaper Financial Times Deutschland (FTD). Weimar said that the sale process has been resumed and that a deal is expected by the end of 2008. The German state aims to fetch about EUR 400mln for the portfolio, which consists of 35 public buildings. According to the FTD, the assets generate a net rent of about EUR 25mln. HSH Real Estate and Atisreal have been appointed to market the portfolio.

The German state initially put the assets on the market last year, but eventually halted attempts to arrange a sale and leaseback of the portfolio because the ongoing turbulence in the financial markets had left potential buyers unwilling or unable to meet the asking price of around EUR 400mln.

In November 2006, Austrian real estate company CA Immo acquired the Leo II portfolio from Hesse for about EUR 770mln in a sale-and-leaseback operation. The portfolio comprised 36 state-owned properties and 170 homes. Sphere: Related Content

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