Montano Real Estate GmbH (“Montano”, www.montano.eu), a highly specialised partner for investments in commercial real estate, has acquired an attractive single-tenant office property in Düsseldorf on behalf of Beyond City Properties (“Beyond”), a real estate company specialising in fixed-income real estate investments. This is the sixth joint acquisition between Beyond and Montano.
In the last two years, the portfolio has grown to around 200 million euros, continuing the successful partnership that has now lasted for more than a decade. Montano will continue to identify unique commercial real estate market opportunities for Beyond’s property portfolio. The portfolio is to be further expanded, with sufficient capital available for further acquisitions.
The office building at Elisabethstraße 65 (“Elisé”) in Düsseldorf was built in 2000 and extensively renovated in 2021. It offers a total lettable area of 9,338 m² and has flexible floor plans that allow for both modern office concepts and single and multiple tenant configurations. The property is leased to the city of Düsseldorf on a long-term basis and is used by the municipal public order office and the office for building management.
“Elisé” is located in the Friedrichstadt office market, a location that is particularly popular with public users. The connection to public transport is excellent: Directly opposite the property is the Kirchplatz underground station, from which you can reach Düsseldorf city centre in just two minutes. The Bilk S-Bahn and regional train station is only one stop away. Düsseldorf’s main train station can be reached in about six minutes by car, and the Rheinkniebrücke offers a direct connection to the A52 motorway. Adjacent to the property, a 32,000 m² urban area along Friedrichstraße will be transformed into a modern, pedestrian-friendly promenade in three construction phases by 2027. The excellent transport connections combined with new leisure, health, gastronomy and retail facilities will further increase the attractiveness of the location and increase tenant satisfaction in the coming years.
“We are very pleased to acquire ‘Elisé’ as the property meets all the criteria we are looking for for a strong investment. It offers a central and urban location, a long-term lease with solvent institutional tenants and significant potential for appreciation. We want to tap into this potential through targeted ESG and capital improvement measures,” says Samson Weldemariam, Managing Partner at Montano.
“We have identified ‘Elisé’ as a property with an exceptionally attractive risk/return profile for Beyond. From an investor’s point of view, the long remaining term of the lease of 9.5 years and the rents, which are 100 percent linked to the consumer price index, are particularly convincing. The lease agreement with the City of Düsseldorf secures attractive cash flows in the long term and at the same time keeps the risk of loss of rent very low,” adds Katharina Weigl, Director Debt Finance & Investment at Montano.
Advisors to this transaction included Noerr (legal), Cumming Group (technical), Fair Audit (tax) and Tauw (environmental). The project financing was arranged by Volksbank Darmstadt Mainz. The seller was legally advised by Görg, BNP acted as broker.
