The Cologne-based multi-family office for real estate assets DERECO has acquired a property in the immediate vicinity of Hamburg Town Hall as part of its value-add strategy.

The building was constructed in 1957. Predominantly used as office space, it last underwent comprehensive refurbishment by its previous owner in 1997. It is a striking construction located on the corner of Rathausstrasse and Pelzerstrasse in the heart of central Hamburg, within sight of Hamburg Town Hall. Currently, this property covers some 1,750sqm of space to let on five storeys, one of which is a slightly detached floor on the top. Easy to reach by public transport, the house is located in a neighbourhood boasting numerous restaurants and shopping facilities.

In the medium term, DERECO plans to reposition the building in a sustained way. In this context, several major investments have been envisaged.

“The banking and stock exchange quarter in Hamburg is an attractive spot for offices with a high demand for space and low vacancy. With our asset management expertise and through future investments, we intend to create substantial value in the medium term,” says Jörg Kohlhaus, Head of Investment and Asset Management at DERECO.

For this transaction, DERECO received legal advice from the Berlin branch office of the TaylorWessing firm. It was agreed not to disclose the selling price.

For additional purchases, DERECO is searching the German market for existing properties and plots with a potential to increase in value. Relevant market segments include offices, housing, retail and hotels. In addition, DERECO is looking for developable land for new projects. Investment sums range between a minimum of EUR 20m for individual properties and up to EUR 500m for large neighbourhood projects. Besides top locations across the country, prospering cities and metropolitan areas with a population of at least 250,000 will be considered.