KGAL acquires timber-hybrid office building in Wiesbaden
KGAL has acquired a 5,300 sq m timber-hybrid office building in Wiesbaden, developed by Frankfurt-based project developer OFB, for an undisclosed amount.
“ESG lighthouse properties are attractive for tenants and investors now and in the long run, as they set standards in terms of sustainability and do not entail any stranded asset risk,” said André Zücker, co-CEO, KGAL.
The independent investment and asset manager acquired the Platinum building for one of its institutional real estate funds. There is a long-term rental agreement in place with Hessen Agentur, a service company of the state of Hesse, which guarantees stable and secure future cash flows at portfolio level.
The asset is characterised by its innovative building technology and the highest sustainability standards. It was built in 2023 using a timber-hybrid construction method. Around 50% of reinforced concrete was saved during construction. The timber hybrid property in Wiesbaden is one of the most future-proof office investments in terms of building quality and location, KGAL stated.
Designed as an energy-plus building, Platinum generates more energy over the course of a year than it requires to operate. The property has six above-ground office floors, a basement, which houses the underground car park and technical areas, and an outdoor area with additional parking spaces including electric charging stations.
The taxonomy-compliant Platinum is classified in energy class A+ and has DGNB Platinum certification. It also has WiredScore Platinum certification for digital connectivity and infrastructure.
The building is located in the centre of Wiesbaden, the Hessian state capital, which is a key part of the economically strong metropolitan region FrankfurtRheinMain. Thanks to its high sustainability standards, a municipal tenant with a strong credit rating, which in turn coordinates and promotes innovation and sustainability concepts itself, has opted for the single-tenant property on a long-term basis.
But in future, because of its flexible building layout, the combination of ecological construction and state-of-the-art building technology, and the excellent transport connections, the property could also be used by third parties.
In addition to the Platinum, KGAL is currently examining several other attractive properties, said Zücker: “Supply and demand in the real estate market are gradually coming back into line and we will actively seize the opportunities that are now opening up for our investors.”
