Warburg-HIH Invest acquires 31,450 sqm Square One office property in Vienna
Warburg-HIH Invest Real Estate (Warburg-HIH Invest) has acquired an office property in Vienna for two individual mandates from German institutional investors as part of a club deal. The seller is STRABAG Real Estate Austria. The multi-tenant property with the addition of retailers is located in the 19th district (Döbling) in the north of Vienna and has a total rental area of around 31,450 square meters. The property, which was completed in 2018, currently has an occupancy rate of 91 percent. Office tenants include the global insurance group Zurich, the pharmaceutical company AOP Orphan and the provider of flexible office solutions, Spaces. Around five percent of the rental space is accounted for by retail and restaurant space. There are 354 parking spaces available to tenants. Warburg-HIH Invest acquired the property in a share deal. The parties have agreed not to disclose the purchase price.
Matthias Brodeßer, Head of Transaction Management International at Warburg-HIH Invest, says: “The Vienna office market has shown itself to be stable and crisis-resistant. Since the inner city districts are virtually fully let with a vacancy rate of less than two percent, the north of Vienna is becoming more attractive. With good transport links, the location attracts established companies, start-ups, and educational and research institutions alike. Overall, the office market in Vienna has so far been unaffected by the pandemic: In 2020, the second highest office space absorption in all of Europe was recorded."
The neighborhood will be further enhanced in the coming years through the planned realization of the Muthgasse urban district, one of the largest urban development areas in Vienna. “STRABAG Real Estate recognized the potential of the location early on and set the course for this strategically important business park. Square One is a showcase project with added value in ecological, economic and socio-cultural aspects. We are very pleased that the Austrian Society for Sustainable Real Estate Management (ÖGNI) has awarded our project the DGNB certificate in the platinum category, ”says Erwin Gross, Managing Director of STRABAG Real Estate Austria. Due to the close proximity to the Heiligenstadt underground station and the A23 motorway, a direct connection to Vienna's city center is ensured by public transport and private transport.
"The modern, flexibly usable areas of 250 to 5,000 square meters in Square One allow all modern office shapes and can be perfectly adapted to the individual needs of prospective tenants," adds Sebastian Pende, Vienna branch manager of Warburg-HIH Invest Austria. The retail space (including a Billa supermarket, a Raiffeisen bank, two catering concepts) round off the usage concept and complement the location functionally. “With Warburg-HIH Invest, STRABAG Real Estate has found a very reliable and strategically important partner for future deals. We are already looking forward to our future cooperation,” says Erol Milo, Head of Commercial Real Estate at STRABAG Real Estate Austria.
The legal due diligence was carried out by the law firm DORDA Rechtsanwälte GmbH, Vienna. The tax and financial due diligence was carried out by TPA Steuerberatung GmbH, Vienna. Alpha & Partner Immobilien Consulting GmbH, Vienna was commissioned to carry out the technical and ESG tests. The economic due diligence was carried out by EHL Investment Consulting GmbH, Vienna.
Photo: Daniel Hawelka