Starwood and CELLS sell 23,000 sqm of office space in Hamburg

Funds managed and controlled by Starwood Capital Group, through a JV with operating partner CELLS Group, have sold two Hamburg office properties, Sachsenkamp and Kieler Park, with a total rental area of 22,900 sqm on December 1, 2021. The parties had acquired the portfolio in December 2017. Both Sachsenkamp and Kieler Park were sold to European institutional investors for undisclosed purchase prices.

Federico Bianchi, Managing Director at Starwood Capital Group commented: “The high degree of investor interest received on these transactions confirms that well located and managed office assets continue to be in demand. Over the past four years, our value-add strategy for both properties was focused on securing high-calibre tenants of superior covenant strength, including public sector entities and blue chip national and international corporates.”

Thomas Ostermann, Managing Director at the CELLS Group added: “Our hands-on asset management approach allowed us to successfully re-let under-rented space at market levels, achieving full occupancy on both assets within just two years and securing a considerable increase in net operating income. Both properties have proven very resilient throughout the pandemic and did not suffer any rent arrears.”

Sachsenkamp is a 6,700 sqm, four-storey office building, developed in 1991 and part-renovated in 2013. The property is fully let, with the main tenant being an international pharmaceutical company with a top credit rating, occupying ca. 40% of total leasable area. The Hammerbrook S-Bahn station is only a short walk away from the property.

Kieler Park is a 16,200 sqm office complex consisting of four buildings, all developed in 1994. The property is fully let to a diversified tenant roster, the largest occupier being a publicly listed German manufacturing company. The complex is located in Hamburg's Eimsbüttel submarket within a ten minute walk from the lively Osterstraße and close to the “Diebsteich” train station, which will undergo a major expansion over the coming years.

Starwood and CELLS Group received legal advice from GSK Stockmann and technical advice from CBRE. The buyers received legal advice from P + P Pöllath + Partners, technical advice from WBRE and environmental advice from Arcadis. CBRE acted as intermediary.