JV Acquires German Office Asset

Düsseldorf

A joint venture between real estate funds managed by Ares Management Corp. and EDF Invest has acquired the IKB office building in Düsseldorf, Germany, from IKB Deutsche Industriebank. A purchase price was not disclosed.

The 629,688-square-foot property was built in 1997 and encompasses two separate but connected buildings. Located in the office submarket of Kennedydamm, key tenants at the property include IKB, Helaba, Colt and Berkshire Hathaway. IKB will remain the largest tenant in the building.

The new owners plan to transform the property from a primarily owner-occupied bank headquarters to a modern, multi-tenant office campus. Cells Property Investors was tapped as the local operating partner of the joint venture.

The deal marks Ares Real Estate Group’s latest German acquisition and its fifth acquisition in Düsseldorf over the last two years. The company has transacted nearly $2 billion in Germany over the two years.

Last month, the Hines European Value Fund acquired more than a dozen office buildings that make up the Karshoehe Portfolio in Stuttgart, Germany, for more than $341 million. In January, LaSalle Investment Management purchased a Munich office portfolio for $194 million.

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