Frankfurt am Main – International real estate consultancy Avison Young advised a Canadian pension fund on the purchase of a mixed-use property in Leinfelden-Echterdingen near Stuttgart, Germany.

Frankfurt am Main – International real estate consultancy Avison Young advised a Canadian pension fund on the purchase of a mixed-use property in Leinfelden-Echterdingen near Stuttgart, Germany. The deal was firmed up in 2016 and closed in December 2019. The property on Nikolaus-Otto-Straße comprises around 16,500 sqm of rental space, which is divided into laboratory, offices and light industrial. The main tenant is SYNLAB Medical Supply Center Leinfelden-Echterdingen GmbH, which occupies around 7,000 sqm operating a modern laboratory. The seller is Core Development GmbH. The parties have agreed to not disclose the purchase price.The multi-tenant property is currently 97 percent let. The building was built in the 1970s. In 2016, Core Development started a comprehensive revitalization of the existing property, converting the space into a modern office and light industrial property. The property has received "Gold" certification from the German Sustainable Building Council (DGNB).

Simone Knopf, Director Investment Management, says: “The prospect of acquiring a state-of-the-art mixed-use property with DGNB certification constituted a great incentive for our investor as a robust environmental, social and corporate governance strategy has been implemented into their global portfolio for years. We have accompanied the project and the purchase itself throughout the entire process and are pleased to have been able to guide the deal towards a successful conclusion.“ Avison Young – Investments Canada (Inc) will take over the asset management for the acquisition.

Udo Stöckl, Principal and Managing Director of Avison Young in Germany, says: “It is the fifth completed purchase for our client with whom the purchasing strategy is regularly discussed. German market conditions are currtently very challenging and we are proud to have shown determination and discernment obtaining this property. We plan to continue to expand the portfolio with a strong focus on secondary locations and different types of use.“

Leinfelden-Echterdingen borders on Stuttgart to the south. The state capital of Baden-Württemberg is one of the strongest business locations – the surrounding region has proven itself as logistic hub in recent years. The property on Nikolaus-Otto-Straße is not far from the exhibition center and Stuttgart Airport. It is surrounded by hotels, companies from various industries and a plethora of shopping opportunities. An immediate connection to public transport is available using the nearby Echterdingen train station. The Autobahn A8 can be reached within minutes by car.

On the buyer's side, KPMG AG Wirtschaftsprüfungsgesellschaft and Linklaters LLP provided tax and legal support for the transaction. The technical support was provided by REC Partners GmbH.