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Godewind Immobilien to buy 2 German office complexes for €73.5M

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Godewind Immobilien to buy 2 German office complexes for €73.5M

German real estate company Godewind Immobilien AG agreed to pay €73.5 million, or €2,505 per square meter on average, to buy two office complexes in Germany.

The assets in Frankfurt and Dusseldorf are the first two commercial properties purchased by Godewind, according to a release.

Together, the two complexes span a total rental area of about 29,300 square meters, with a vacancy rate of about 1% and 9% at the property in Dusseldorf and Frankfurt, respectively.

The properties have a weighted average lease term of about three years and generate rental incomes of roughly €4.2 million per year, reflecting a gross initial yield of approximately 5.7%. Godewind aims to boost the annualized rental income for full occupancy by up to 14% to €4.7 million.

The deal, slated to close by 2018-end, will be initially financed using proceeds from the company's IPO in April.

Additionally, Godewind expects to complete negotiations for the purchase of other properties in the fourth quarter.

The company also disclosed the appointments of Jan Ohligs and Marcus Sälinger as head of M&A and head of asset management, respectively.

Ohligs previously oversaw the property business in Germany, Austria and Switzerland at American investment bank Jefferies, while Sälinger looked after asset management at Principal Real Estate Europe.