Standard Life and Swiss Life pay €325m for German 'Lilli' portfolio

UK-based Standard Life Investments has bought a portfolio of seven prime offices across Germany for €325m, bringing in Zurich-based insurer Swiss Life as a co-investor.

The portfolio, known as the 'Lilli' portfolio, was sold by two Luxembourg real estate funds created and managed by Frankfurt-based Conren Land and the Paris-based N+1 REIM. The seven office buildings, totalling 115,000 sqm, are located in Frankfurt, Hamburg, Munich, Nuremburg and Stuttgart and will be split between four separate Standard Life investment funds.

The assets are located in Frankfurt, Hamburg, Munich, Nuremburg and Stuttgart, and include: the Hanse Carrée, a seven-storey office building in the City-South district of Hamburg, the landmark Hamburg building Deichtor, the Hanse Forum in Hamburg’s CBD, the Helmholtz listed office in Munich, the Coreal Tower in Frankfurt’s Westend, the Von-der-Tann office in Nuremberg and the mixed office and retail asset Büx in Stuttgart’s city centre.

According to Daniel McHugh, head of Continental European real estate at Standard Life Investments, "The portfolio has a range of risk profiles to match the varying risk profiles of different Standard Life Investments funds. The transaction demonstrates our ability and appetite to deliver large, complex deals in Europe and it also reinforces our confidence in the German market." The Edinburgh-based Standard Life Investments manages assets across all asset classes worth €250bn.

The properties will be managed by Corpus Sireo, a subsidiary of Swiss Life. The deal marks the first time that Swiss Life has been the co-investor in a deal since it bought asset manager Corpus Sireo last year.