AEW has sold its Selection Portfolio, seven office assets in Germany, to Curzon Capital Partners 5 LL fund which is advised by Tristan Capital Partners.
Reports have put the price paid at between €410 million and €420 million.
The portfolio, which comprised the AEW City Office Germany Fund, has a total floor area of 83,000 sq m across Munich, Berlin, Hamburg, Düsseldorf, Frankfurt and two assets in Cologne.
AEW said during its ownership of the portfolio, that it had increased occupancy across the properties by 15% to 98% while the rent roll increased by 22% to its current €16 million per year.
AEW’s head of funds and separate accounts Germany, Marc Langenbach, said the success of the strategy has enabled the firm to secure capital commitments for the next fund in the series, the AEW City Office Germany II.
Tristan said in a statement that Germany looks set to be one of the markets that recovers fastest from the Coronavirus crisis and currently has unemployment at around 4%.
“We believe that we will see sustained demand for high-quality office space in prime locations in Germany over the next few years and that the ongoing demand and supply imbalance will outweigh any short-term, incremental rise in vacancy in the immediate wake of the current crisis,” said Tristan Capital Partners managing director Constantin Plenge.