Allen & Overy LLP has advised CORESTATE Capital on the sale of a commercial real estate portfolio comprising six office buildings rented to Deutsche Telekom AG to DEMIRE Deutsche Mittelstand Real Estate AG by way of a share deal.
The six office buildings included in the portfolio are located in Ansbach, Bonn, Flensburg, Freiburg, Regensburg and Stahnsdorf near Berlin, and are let to Deutsche Telekom AG on long-term leases. The portfolio has a combined lettable area of approx. 144,000 sqm plus 1,170 underground and surface parking spots. The net annual rent, excluding utilities and based on the properties’ current full occupancy, amounts to roughly EUR 14.8 m. CORESTATE Capital acquired the portfolio with the legal assistance of Allen & Overy LLP in May 2013. The parties agreed not to disclose the purchase price.

Using sound timing, appropriate asset management measures and securitised debt, CORESTATE Capital managed to ensure sustainable rent revenues and to optimise the cost-income ratio. Going forward, CORESTATE Capital will continue to handle the asset management for the portfolio, and facilitate the strategic alignment of the new owner.
CORESTATE Capital is a specialised real estate investor based in Zug, Switzerland, with partner offices in Frankfurt, London, Luxembourg, Madrid and Singapore.

The Allen & Overy team was led by partner Dr Christian Eichner and Senior Associate Dr Michael Fink (both corporate/M&A, Düsseldorf) and further comprised partner Dr Oliver Waldburg (banking and finance, Frankfurt) as well as Associates Kyrill Chilevych (corporate/M&A, Düsseldorf), Dr Nicole Blinn (public law, Frankfurt) und David Schmidt (banking and finance, Frankfurt).