Irish investors in €15m Hamburg deal

IRISH investors have purchased office and retail properties in Hamburg for a knockdown price of €15 million from a German financial institution.

Signature Capital, whose principals are Ciaran McNamara and Enda Woods, has completed the acquisition of three properties with a combined 275,000sq ft of office and retail space in Hamburg, Germany.

Signature said the deal was an “off-market transaction” and said the portfolio was purchased directly from a German bank for €15m, which equates to only €55 per sq ft.

“The properties, despite having an occupancy rate of just over 50%, generate a yield of 8.2% off current rent. The properties have been formally valued at €22.7m,” said Signature.

Signature director Enda Woods said: “We are delighted to have sourced and completed this acquisition in circumstances which resulted in achieving a very favourable price. This is a great opportunity for us to add value through active asset management.

“Already since the purchase further lettings have taken place bringing the current yield to 9%.

“The current market conditions can create an environment where a number of significant opportunities become available. We are confident Signature Capital is in a position to identify and secure a number of these opportunities said Mr Woods.”

Signature Capital, founded in 2004, has property investments valued by the company at €700m under management, primarily focused on commercial, retail and residential property in Britain, Europe and the US.

Last month Signature offloaded a prime shopping centre in Frankfurt for €52m, earning a return of 70% for investors in the space of 18 months.