New Owner of Vodafone Building
Mirae Asset Daewoo will pursue the acquisition of Vodafone's head office building, a landmark edifice in Dusseldorf, Germany.
On March 5, Mirae Asset Daewoo announced that it had begun negotiating on the acquisition of the property at the end of last year and was selected as a preferred bidder to acquire Vodafone Campus on February 20. The volume of the real estate investment is about 350 billion won (US$297 million), and the company’s investment funds will be composed of equity capital investment and local senior lending.
Vodafone Campus in Germany consists of a 19-story building, an eight-story building and a parking building. The building was completed at the end of 2012, and is under a 20-year long-term lease agreement with Vodafone. At the end of the lease term, an additional 10-year extension will be possible. Its annual expected return is 5%.
"We are expecting not only a stable lease income but also an additional profit due to a rise in inflation in the future as the building has a profit making structure where the German CPI will rise, elevating rents," said a representative of Mirae Asset Daewoo.