GEG invests €140m in Düsseldorf and Mainz

The Frankfurt-based GEG German Estate Group has bought two further properties in Düsseldorf and Mainz for a total of € 140 million for its funds "Deutschland Value I" and "Public Infrastructure I".

The Düsseldorf property at Karl-Arnold-Platz 1 (KAP1) in Düsseldorf was bought from Germany’s biggest ocupational pension fund, BVK Bayerische Versorgungskammer, Munich, for its manage-to-core fund "GEG Deutschland Value I ".

In Mainz's old town on the banks of the Rhine (Rheinstrasse 2), it bought a building used 100% by Deutsche Bahn from KGAL GmbH & Co. KG, Grünwald, for its "GEG Public Infrastructure I" fund. The total investment volume is around €140m.

The distinctive building in Düsseldorf's submarket, the Kennedydamm, has rental space totaling around 9,500 square meters, which is currently about 70% let. The areas are distributed on eight upper floors and four lower levels. The lettable space included 7,000 sqm of office space and around 2,500 sqm of showroom space, plus storage areas and 186 underground parking spaces. GEG will start to reposition the building immediately to add value and achieve full letting, while renaming it “Cabo”.

The Mainz property with over 31,000 sqm of flexible rental space and 178 parking spaces was built in 1998 and extensively modernized in the years 2016-2018. It is leased long-term and 100 percent to Deutsche Bahn AG as the headquarters of its subsidiary DB Cargo.

GEG now has about €3.2bn of assets under management across Germany, mainly high profile trophy assets including Frankfurt’s Global Tower and the Riverpark Tower, the Villa Kennedy hotel and Japan Tower, the Sapporobogen and Junges Quartier Obersendling in Munich, and Hamburg’s Opera Offices. The group, headed by Ulrich Höller, is owned by shareholders TTL-Gruppe and private equity group KKR.