Davy Stockbrokers has bought a key commercial property in the centre of the German city of Hamburg for €28 million on behalf of the firm's private clients.

The stockbroking firm announced yesterday that it has bought Neuer Wall 52 in Hamburg's premier retail district for €28 million.

According to its statement, the property covers 3,065 sq m (33,000 sq ft) and is let to a range of retail and office tenants, including Marc Cain, Denim Wall and the private bank Julius Baer.

A Hamburg-based developer, RIPA, recently built and let the property.

David Goddard, of Davy Private Clients, said yesterday that the move was designed to cash in on the economic recovery in the EU's biggest country.

"Germany has shown strong signs of economic recovery over the past 18 months," he explained.

"When the consumer recovery begins to take hold, properties in districts such as Neuer Wall will be the primary beneficiaries."

Earlier this year, Davy bought another central Hamburg commercial property, the Spitaler Hoff, also on behalf of its private clients.

Hamburg is Germany's second richest city and the country's biggest port.

It has a population of 1.7 million, with over four million people living in its greater metropolitan area.

Davy said yesterday that, unlike many other German cities, its population is growing. The firm claimed that this was a "reflection of its underlying economic strength and its importance as a centre of trade".

The firm's management is currently in the process of buying out Davy's biggest shareholder, Bank of Ireland.