Signature Capital, the property group founded by investment bankers Ciarán McNamara and Enda Woods, has expanded its holdings in Germany with the €60 million purchase of the Raffay Smart City building in Hamburg.
The acquisition follows the purchase of the Galleria Kaufhof department store in Berlin for €61.3 million last June and takes the value of Signature's German property deals to more than €400 million in the last two years.
The building has a letting space of 25,755sq m over three floors. The property, built in 1999, is let to seven tenants, including Peugeot, Smart and a UCI Multiplex. Mr McNamara, Signature's managing director, said the property had a gross yield of 6.79 per cent. Signature's Berlin property has a gross yield of 7.17 per cent.
"Returns on investments made to date in Germany have been excellent and we remain positive on the outlook for the German property market as the economy continues to improve," he said.
In a recent fundraising, Signature raised more than €50 million in equity from private clients for investment in German commercial property. Its German portfolio has a value of more than €250 million. The company is conducting due diligence on a number of other German property investments.
