Tristan, Freo JV buy landmark Cologne estate for €110m

The EPISO 3 Opportunity Fund managed by London-based real estate manager Tristan Capital Partners has bought the landmark Barthonia Forum mixed-use estate in Cologne for €110m in a joint venture with Luxembourg-based developer and manager Freo. HSH Nordbank is providing senior financing of €91m on the deal.

The previous owner was Terra Heimbau, a company associated with Tel-Aviv listed investor Arazim Investments, for which Deutsche Immobilien Wirtschafts Gesellschaft (DIWG) had been managing the asset, including renovations and new leases.

The Barthonia Forum urban quarter, in the city’s Ehrenfeld district, consists of 12 buildings with 70,000 sqm of gross lettable area, including a shopping centre anchored by the Kaufland supermarket chain, an office tower, the former factory of the famous 4711 eau de cologne, partly converted into offices, and 200 residential apartments.

“Barthonia Forum presents an opportunity to transform an inner-city square, a short walk from the centre of Cologne, into a vibrant quarter with an attractive retail, office and residential offer thanks to great tenant demand,” said Tristan managing director Ali Otmar. The investment gives EPISO 3 a mixture of cash-flow and value-add opportunity in retail, residential and office repositioning.

Apart from co-investing, Freo will advise the joint venture on asset management and other repositioning activities. Tristan pan-European real estate funds include core-plus and value-added/opportunistic strategies with a total of €5bn of assets under management..