KINGSTONE Investment Management (KINGSTONE IM) has acquired the office property MAYOFFICE in Stuttgart from GIEAG Immobilien AG for its Special AIF “KINGSTONE Wachstumsregionen Süddeutschland” (KWS). The purchase price is in the mid double-digit million euro range.
The new construction project, located at Maybachstrasse 20, has a gross floor area of approx. 10,000 m² and is scheduled for completion in the second quarter of this year. More than 80 per cent of the available areas have already been leased in the long term, with tenants including the IT firm ADWEKO Consulting, ISM International School of Management, and the Stuttgart-based notary public Christiane Stoye-Benk. Talks are also being held on leases for the remaining areas, with the effect that it is to be expected that additional lease agreements will be concluded in a timely manner.
MAYOFFICE is part of a quarter development comprising two multifunctional structures – the adjacent MAYLIVING will accommodate 67 apartments as well as a day-care centre for children and an additional retail unit for an ice cream parlour. Well-known venues in the city such as the Theaterhaus Stuttgart and Friedrichsbau Varieté theatres as well as Höhenpark Killesberg public park are in the immediate vicinity. “With MAYOFFICE we are not just creating attractive office areas in the long term, but also setting urban development standards, of which we are very proud,” says Thomas Männel, a board member at GIEAG Immobilien AG. “We were able to post several leasing successes before the completion of the project. This is testimony to its high quality and shows that first-class office space in prime locations is in demand despite the current pandemic. In KINGSTONE IM we have found a partner who recognises and appreciates well-balanced and well thought-out concepts just as we do. We believe that with MAYOFFICE we have laid the foundation for many more joint projects in the future.”
“The project stands out thanks to its very good micro location, appealing architecture with a greened inner courtyard and roof terraces, as well as ultra-modern office areas. The optical integration of the outdoor areas into the new square in front of the neighbouring theatre not only makes the property attractive for tenants but also for the users of the surrounding buildings,” adds Philip Greilich, Head of Transactions Commercial Germany at KINGSTONE IM. “With charging stations for electric cars, a sufficient number of bicycle stands, as well as sanitary areas with showers and changing facilities, we are also taking into account sustainable mobility concepts. Furthermore, we are aspiring to attain LEED Gold sustainability certification.”
The special alternative investment fund KWS primarily invests in core office properties and commercial real estate in selected growth regions in southern Germany, and is geared towards institutional investors. The risk-return profile of MAYOFFICE is within the target range of the special AIF and contributes to its diversification in terms of geography and the tenant structure. The special AIF was launched in the summer of 2019 and is already fully invested to a large extent.
Dr. Tim Schomberg, Managing Partner at KINGSTONE IM, underlines: “The transactions since the launch of the fund show that we can quickly call capital commitments. The excellent access to first-class products through our network will also safeguard this with future acquisitions. With MAYOFFICE we are securing a sustainable office property for our investors which is attractive in the long term. The location, fit-out and LEED certification suit the profile of KWS in an outstanding manner.”
KINGSTONE IM was advised on the transaction by DLA Piper (legal due diligence), Drees & Sommer (technical due diligence), and on tax issues by ARNECKE SIBETH DABELSTEIN. The law firm GSK Stockmann provided support for GIEAG Immobilien AG.
GIEAG is a family-run Munich real estate stock corporation. The shares of GIEAG Immobilien AG are traded on the Munich Stock Exchange as well as the Frankfurt Stock Exchange and Xetra. By combining the three asset classes - office, residential, logistics - and the two service areas of development and portfolio management, the company offers stability that is unique in the market. The GIEAG team of experts is a guarantor for innovative and forward-looking concepts.
Over the past 22 years, GIEAG Immobilien AG has developed and optimised a large number of real estate projects with areas of up to 145,000 square metres and an individual investment sum of 15 to 150 million euros. Partnership, transaction security, perseverance and speed are the basis of sustainable value development for GIEAG.