CMC Capital purchases Electrolux headquarters

CORK-based property investment company CMC Capital has purchased the headquarters of global domestic appliance firm AEG-Electrolux in a €60 million investment.

The property, which is located in Nurnberg, Germany was purchased in the form of a sale and lease-back arrangement, which sees AEG-Electrolux taking a long lease for office accommodation on the site.

It will retain its international headquarters building, which covers 20,000sq m, leaving the opportunity for further development on the rest of the 150,000sq m site.

More than 700 AEG employees will continue to work at the complex.

CMC Capital director Richard Kingston said: “The deal is a considerable coup for the CMC syndicate investors, in that the rental income from the AEG lease makes the project a solid and self-financing investment, while there is the added prospect of substantial profits in the coming years as the site is developed into an office and retail park with more than 150,000 sq m. We are raising monies for our next round of investment in Germany, for which we have targeted a pipeline of other opportunities.”

The transaction was structured as a joint venture with CMC’s German partner, Berlin-based real estate firm MIB.

Under the terms of the agreement, CMC Capital and MIB will look to further develop the site following this acquisition.