Cromwell has signed an agreement to sell an office and light industrial property located in a technical and industrial park in Darmstadt in Germany to specialist alternative investment fund VB Immo Select from HANSAINVEST. The fund is advised by the independent transaction, asset and fund manager Arminius Group.
Cromwell completed the disposal from the Cromwell European Diversified Fund (CEDF). Financial details of the transaction will not be disclosed. The closing of the transaction is expected in Q1 2020.
Comprising an office building and light industrial hall with a total lettable area of 17,600 sqm, the property is part of the larger Schenck Technology and Industry Park, which totals 110,000 sqm across 110 buildings. It is currently occupied by Schenck Process Europe GmbH on a long-term lease that was extended in 2018 and has a WALE of 10 years.
With excellent transport links, the property is a 15-minute train journey from Frankfurt and well connected by road to the city centre of Darmstadt and the national motorway network.
This sale completes the successful disposal of all the assets from the German portfolio within CEDF, which Cromwell launched in April 2014.
Rob Cotterell, Head of Investment, Europe at Cromwell Property Group, commented: “The disposal of this property from the German part of the Cromwell European Diversified Fund further demonstrates the strength of our local platform and our ability to generate attractive investor returns by repositioning and improving value-add properties. Since launch CEDF Germany has generated an IRR of 19% over a five-year period from a diversified portfolio of 19 single and multi-let retail, office and logistics assets.”
Cromwell was advised by Bryan Cave Leighton Paisner LLP and Gleeds Deutschland GmbH, whilst Jones Lang LaSalle SE has been instructed as the sales agent.