CDPQ-backed Avison Young buys German mixed-use property

Avison Young's investment arm has acquired mixed-used property in Germany on behalf of some Canadian pension funds.

Avison Young’s investment arm has acquired mixed-used property in Germany on behalf of some Canadian pension funds. No financial terms were disclosed. Toronto-based Avison is backed by Caisse de dépôt et placement du Québec.

PRESS RELEASE

TORONTO and FRANKFURT, Jan. 31, 2020 /CNW/ – Avison Young’s Investment Management group today announced the completion of its fifth German portfolio acquisition on behalf of institutional Canadian Pension Plans. The four-story mixed-used property in Leinfelden-Echterdingen near Stuttgart, Germany, achieved Gold certification from the German Sustainable Building Council (DGNB).

“Structured as a forward commitment, the redevelopment involved reconfiguring and modernizing a manufacturing facility built in 1940 into a mixed-use, state-of-the-art facility. We are pleased the property achieved both DGNB Gold certification and near full lease-up prior to completion,” says Amy Erixon, Avison Young Principal and Global Head of Investment Management. “The purchase demonstrates our focus on long-term strategies backed by a deep understanding of market dynamics to deliver returns for our clients across the investment lifecycle and in keeping with robust environment, social and governance investment strategies.”

Avison Young’s Investment Management group oversaw the project from its onset in 2016, through the December 2019 closing, including debt financing, leasing and development oversight services. The mixed-use property comprises 16,500 square meters. It is more than 97 percent let. Among other long-term tenants, the property serves as regional headquarters for SYNLAB Medical Supply Center Leinfelden-Echterdingen GmbH, the leading medical testing company in Germany. The seller is Core Development GmbH. The parties have agreed to not disclose the purchase price.

“We regularly advise our clients on purchasing strategy and we were able to exceed target investment returns with this fifth completed purchase as a result,” adds Udo Stöckl, Avison Young Principal and Managing Director of the firm’s German offices. “German market conditions are challenging and we are proud to have shown determination and discernment obtaining this property as we continue to expand the portfolio.”

Avison Young’s Investment Management group provides strategic counsel and oversight of multi-national portfolios on behalf of institutional clients. The team is focused on developing and proactively managing diverse portfolios comprised of various asset types to create stable income and above average growth. It does so with a keen eye to providing risk adjusted returns for investors, while also addressing resiliency and sustainability in accordance with environmental, social and governance factors.

KPMG and Linklaters provided tax and legal support for the transaction on the buyer’s side. Technical support was provided by REC.

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 108 offices in 14 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.

Avison Young is a 2019 winner of the Canada’s Best Managed Companies Platinum Club designation, having retained its Best Managed designation for eight consecutive years.
www.avisonyoung.com