München, 4 October 2023 – Hannover Leasing, a subsidiary of Corestate Capital Group (Corestate), has successfully sold "Haus des Lebenslangen Lernens, Dreieich („HLL“) for a closed-end public fund it manages, despite a challenging market environment. The buyer is the investment and asset manager Montano Real Estate.
Innovative and pioneering educational concept
With the highly acclaimed education project “Haus des Lebenslangen Lernens”, Campus Dreieich, the district of Offenbach in Hesse together with OFB-Projektentwicklung as project developer and Hannover Leasing as financing partner, had implemented the education concept of the European Council and the „Strategy for Lifelong Learning“ of the federal and state governments. The education center in Dreieich-Sprendlingen, which was partly refurbished or converted and partly newly built from 2007 onwards, is now an important component of the public social infrastructure. It brings together various forms of schooling, education and childcare in the Offenbach district in a campus for intergenerational learning. On the HLL site, children learn alongside young professionals, adult education students, students and retirees.
The educational campus was completed in 2008 with a total area of approximately 32,500 square meters and its own parking garage. The HLL is fully leased to the Offenbach district until 2038.
High transaction security thanks to price escalation clause
In order to take account of the volatile interest rate development up to the planned closing at the end of September, a price escalator clause was integrated into the purchase agreement. If market interest rates continued to rise, the purchase price was to fall, while it was to rise if interest rates fell. This mechanism gave both sides transaction security. With a purchase price of around € 116m, the sale is one of the largest single transactions on the German commercial real estate market in 2023.
Martin Eberhardt, Managing Director of Hannover Leasing Investment: "As early as 2007, the HLL Campus was an innovative beacon project in the field of education and thus far ahead of its time. The need for investment in public education infrastructure remains as strong as ever. Compliments go to our asset management team, which successfully executed this complex transaction in a very challenging market environment. With this sustainable investment in public infrastructure, we achieved a total return of over 320 percent in terms of equity (before taxes) for our investors over the life of the fund. This shows that we offer exactly what is needed from a single source to accompany sophisticated investments throughout the entire cycle from construction to management to sale. „The seller was advised in the transaction process by "von Kreisler & Cie. GmbH“, Pullach and legally and fiscally by „SATELL“, Munich.
About HANNOVER LEASING
The Hannover Leasing Group is a real asset investment manager with over 40 years of experience. In total, more than 70,000 private and institutional investors have invested around € 11 billion of equity in our products. It develops innovative and sustainable investment solutions for its investors, combining its many years of investment expertise, good market knowledge and consideration of mega trends and ESG principles. The investment focus is on real estate in Germany and abroad and here in particular on the asset classes office, residential and hotel properties. It generally pursues a “buy-manage-sell” approach to optimize its investments. In this context, the Hannover Leasing Group has experienced experts who provide professional support throughout the entire life cycle of a property. Hannover Leasing currently manages assets worth around € 5.8 billion, of which around € 1.9 billion is managed by its own asset management company (AIFM), Hannover Leasing Investment GmbH.
About Montano Real Estate
Montano is the highly specialized, like-minded partner for Commercial Real Estate. We act consistently entrepreneurial and make complex simple. From offices in Munich, Frankfurt and Berlin, we sound out the market. We recognize opportunities quickly and exploit them boldly. For more than 10 years, we have been developing investment products for German and international institutional investors, consistently pursuing the goals of sustainability, return and value enhancement.
www.montano.eu
Forward-looking statements
This press release may contain certain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial position, development or performance of the Company and the estimates given here. These factors include those described in published reports. These reports are available on our website. The Company assumes no obligation whatsoever to update these forward-looking statements or to conform them to future events or developments. No inappropriate significance should be attached to forward-looking statements, which apply only to the date of this communication.
