Stenprop Ltd., through a German partnership in which it owns a 94.9% stake, agreed to sell the leasehold of the Bleichenhof property in Hamburg, Germany, for about €160.2 million.
Bleichenhof Grundstücksverwaltung GmbH & Co. KG is selling the mixed-use property to Projekt Palais Verwaltungs GmbH.
The 94%-leased property has a total leasable area of approximately 19,500 square meters and generates a contractual rent of about €7.0 million per year. It is the single largest asset in the company's portfolio, making up roughly 21% of its gross portfolio by value.
The diversified real estate investment trust said it will use net cash proceeds from the sale to acquire additional multi-let industrial estates in the U.K. and to repay debt. It noted that the sale is part of its strategy to become a 100% U.K. multi-let industrial business.