AUGSBURG, GERMANY-Patrizia Immobilien AG has agreed to buy 36 German office properties valued at about $1.1 billion, or $800 million euros in what would be the country's biggest commercial real estate transaction this year.
Patrizia plans to buy the buildings from Austria's CA Immobilien Anlagen AG (CAI), according to a statement released earlier this week, and a subsequent report from Bloomberg.
The company is making the purchase through a fund backed by institutional clients including German savings banks, pension funds and insurers. Demand for German real estate is intensifying as investors seek profitable havens from the European debt crisis.
Investors are expected to spend about 27 billion euros on German strores and offices this year, the most since 2007, when 54 billion euros of properties changed hands, according to data compiled by Jones Lang LaSalle.
The targeted properties of this deal are in the western German state of Hesse and most are leased to the government, Bloomberg notes. The buildings make up 450,000 square meters (4.8 million square feet) of space. The deal is expected to close before year's end.
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