FOM Invest acquires office and residential real estate in Stuttgart
- Acquisition of an office building and an office, residential and commercial building in the west of downtown Stuttgart
- The two-part portfolio comprises around 16,600 square meters of office space, four apartments, four commercial units and 200 parking spaces.
- The purchase will be made through a property company and, once the corresponding sales permit has been granted, will be transferred to an investment limited partnership (Investment-KG) currently being planned by FOM Invest as an AIF for institutional investors
Heidelberg, January 29, 2021 FOM Invest, the AIF capital management company in the FOM Real Estate Group, has completed a transaction for its first special AIF planned for this year, acquiring two properties in Stuttgart. The two-part portfolio comprises an office property at Rotebühlstrasse 125 with around 14,800 square meters of office space and an office, residential and commercial building at nearby Schwabstrasse 18 with around 1,800 square meters of office space, four apartments, four commercial units and 200 parking spaces. Rotebühlstrasse 125 is currently the headquarters of SÜDWESTBANK. The property was acquired as part of a sale-and-lease-back transaction. Both acquisitions were initially carried out via a property company and will be transferred to the portfolio of the first special AIF of FOM Invest after the corresponding sales permit has been granted. With the planned upgrading and partial repositioning of the properties, FOM intends to offer institutional investors attractive returns in the future. The two purchases in Stuttgart are the first of the acquisitions announced by FOM for FOM Invest AIF-KVG.
Prof. Reinhard Walter, Managing Partner of the FOM Real Estate Group, comments: "Stuttgart remains a highly competitive market due to the low supply. We are all the more pleased about the successful purchase and will start project planning as soon as possible. As part of our "manage-to-core" strategy, we are using our many years of proven development and asset management expertise for the planned repositioning after the existing main lease expires."
As the previous owner, SÜDWESTBANK will initially continue to use the building in Rotebühlstrasse itself as its headquarters. The other space in the property is leased to the food retailer EDEKA and the parking space management company APCOA. Both buildings are located directly at the Schwabstrasse S-Bahn station in the center of Stuttgart, with very good connections to Stuttgart's main train station and airport.
With the newly founded FOM Invest AIF-KVG, FOM Real Estate now enables institutional investors to participate in project developments and acquisitions with high value-added potential. Dr. Bernd Wieberneit, Managing Director of FOM Invest, adds: "The revitalization of the main building gives us the opportunity to realize sustainable space concepts for a high-quality rental property in an urban location with landmark character. This project is virtually ideal for our planned business activities." The revitalization is scheduled for completion in 2026.
FOM was advised on the transaction by alea real GmbH (technical due diligence), ARNECKE SIBETH DABELSTEIN (tax advice), P+P Pöllath und Partner (legal advice), and Westbridge Advisory GmbH (ESG requirements/management costs).
According to the BNP Paribas Investment Market Report published in December 2020, office properties remain by far the most important sales driver in the Stuttgart market, accounting for almost 63%. Despite a Corona-related sharp decline in transaction volume on the Stuttgart investment market (by 45%), the city is still considered one of the most attractive office markets with long-term prospects for rental development in Germany. According to its report on the Stuttgart office leasing market published in January, JLL expects a further increase in prime rents in 2021, as many companies continue to look for space in prime locations, the availability of which is severely limited.
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Contact FOM Invest GmbH
Dr. Bernd Wieberneit
Tel.: +49 6221 36366712
About FOM Real Estate
FOM Real Estate is an owner-managed company and has been successfully active as a project developer and asset manager for over 20 years. Since 1997, FOM has successfully completed projects with a total volume of over 3.5 billion euros. FOM's investment partners include well-known national and international institutional investors. In addition to the existing investment opportunities via individual mandates or club deals, FOM also plans to launch its own special real estate funds in the future. The company's investment activities are bundled in FOM Invest. FOM Invest is a fully licensed AIF capital management company (KVG) according to KAGB.