Swiss Life KVG: Acquisition in Cologne
Swiss Life Asset Managers has acquired an office complex in Cologne for a fund of its subsidiary Swiss Life KVG.
This is one of the first purchases made for Swiss Life KVG, which was established at the end of November 2016. The seller is WealthCap, and the purchase price is in the three-digit million range.
The former head office of the Galeria Kaufhof department store chain at the company's traditional headquarters in Leonhard-Tietz-Strasse, near Neumarkt in the middle of Cologne's city center, was acquired.
The property is currently being developed into the HBC Europe Service Center and is leased on a long-term basis. The connected office buildings have a total area of 38,000 sqm, which HBC Europe fully occupies together with Galeria Kaufhof and other sales divisions of HBC Europe. Hudson's Bay Company (HBC) has been the parent company of Galeria Kaufhof GmbH since October 2015.
As Gabriele Volz, managing director of WealthCap, says, the property's lease was extended for the long term before the sale. The company was thus able to increase the value of the property by more than 30 percent during the fund's holding period.
According to Roy Brümmer, Head of Investment & Transaction at Corpus Sireo Real Estate, the purchase was made as a joint investment for two Swiss Life vehicles. This investor group currently has a high investment demand.
Corpus Sireo, the German Swiss Life Asset Managers real estate subsidiary, was responsible for sourcing as well as for the acquisition and due diligence process, legally advised by Pöllath + Partners. JLL acted as transaction advisor in a mediating capacity.
