Sonar Real Estate sells Neumarkt complex in Cologne to PAMERA

Sonar Real Estate (Sonar), on behalf of CCP 5, a fund managed by Tristan Capital Partners, has successfully sold the Neumarkt complex in Cologne to a capital investment company (KVG) structure, represented by the real estate family office PAMERA Real Estate Partners GmbH (PAMERA). The financial terms of the deal remain undisclosed.

The transaction includes the fully leased properties at Neumarkt 35-37 and Lungengasse 34-46, offering a total lettable space of approximately 8,650 square metres. The property’s allocation consists of 55% office and medical space, 23% retail, and 19% storage. Major tenants include AllDent, Kreissparkasse Köln, REWE, and dm. Originally constructed in 1962 on a 2,365-square-metre site, the buildings underwent extensive refurbishment in 2023. The weighted average unexpired lease term (WALT) stands at 9.5 years.

Following the sale, Sonar will retain its role as the asset manager for the property and will collaborate with PAMERA going forward.

Commenting on the sale, Julian Kaup, Managing Director of Sonar Real Estate, stated: “Despite challenging market conditions, the full occupancy and comprehensive refurbishment have significantly enhanced the property’s value. This transaction underscores our team’s expertise in managing complex disposals and reaffirms the strong demand for diversified properties in prime locations.”

The transaction was facilitated by Colliers, with legal advisory services provided by Clifford Chance for the seller and Böttcher & Fischer Rechtsanwälte for the buyer. WITTE Projektmanagement GmbH conducted vendor-side technical due diligence, while ARGOS Projektmanagement GmbH performed due diligence for the buyer. Tax advisory for the purchaser was handled by SRP Steuerberatungsgesellschaft, Cologne, while PWC advised the seller.

This successful sale reflects continued investor confidence in well-located, diversified commercial assets in Cologne’s thriving market.