Montano Real Estate acquires educational campus 'Haus des Lebenslangen Lernens' in Dreieich, Hessia, from Hannover Leasing Fund

Montano Real Estate acquires educational campus "Haus des Lebenslangen Lernens" in Dreieich, Hessia, from Hannover Leasing Fund

• School campus has 32,500 sqm of space and its own parking garage
• Purchase price of approx. 116 million euros - one of the largest single transactions on the German commercial real estate market in 2023
• Property is let long-term to the district of Offenbach

Munich, 4 October 2023 - Montano Real Estate GmbH ("Montano", www.montano.eu), the highly specialised partner for investments in commercial real estate, has acquired another attractive property. The "Haus des Lebenslangen Lernens" (HLL) education centre in Dreieich, Hesse, has 32,500 sqm of space as well as its own parking garage and is leased to the Offenbach district until 2038. The purchase price is just under 116 million euros. The seller is a fund of Corestate subsidiary Hannover Leasing.

"We are very pleased to have successfully closed another deal with the acquisition of the HLL Dreieich education campus. A ‚big thank you‘ to our team for pulling off this complex transaction in a highly professional manner," says Montano co-founder and Managing Partner Ramin Rabeian. "Social infrastructure - facilities and services that provide social care to our population - is an extremely important pillar of our society. We are proud to be able to contribute to this with the HLL." The HLL is very renowned as one of the largest school and flagship projects. There is a huge need for investment in education."

Campus HLL an important part of the public education infrastructure
With the highly acclaimed education project „Haus des Lebenslangen Lernens, Campus Dreieich“, the district of Offenbach has implemented the education concept of the European Council and the "Strategy for Lifelong Learning" of the federal and state governments. The education centre in Dreieich-Sprendlingen, which was partly renovated or rebuilt and partly newly built from 2007 onwards, has become an important component of the public social infrastructure. It brings together various forms of schools, education and care in the district of Offenbach in one campus. On the HLL grounds, children learn alongside young professionals, adult education students, students and pensioners. The core of the facilities is formed by the Max Eyth School (vocational school), a grammar school and a secondary school for adults, as well as the Volkshochschule Kreis Offenbach. Closely linked to this are the adult education centre and the Dreieich music school as well as the media centre, which have also moved onto the campus. In addition, there are other education providers, such as Allservice, Asklepios Nursing School, Hessian Academy for Office Management, Promethean, Strothoff International School Rhein-Main as well as facilities of the Episcopal Ordinariate Mainz, Deutsche Vermögensberatung and facilities of the Diakonie, which bring a variety of skills, experience and programmes.

High transaction security thanks to floating price clause
In order to take into account the volatile interest rate development until the planned closing at the end of September, a price escalation clause was integrated into the purchase contract. If market interest rates continued to rise, the purchase price was to fall, whereas it was to rise if interest rates fell. This mechanism gave both sides transaction security.

Investments in Public Social Infrastructure as a Safe Investment
Investments in public social infrastructure in Germany have become much more attractive in recent years. Investors focus on real estate and projects that are essential for maintaining important social functions, such as administration, health care, transport networks and energy supply, but also education. Especially in times of highly volatile markets, the investment segment of public social infrastructure proves to be a reliable haven for institutional investors. Owners or tenants in this segment are predominantly government agencies, which have a very low default risk compared to the private sector.

"As an investor and active asset manager, Montano also strives to increase the value of the properties entrusted to us and, of course, our own properties as well," Rabeian continues. "Particularly in the case of existing properties, targeted ESG measures sometimes result in considerable potential for value enhancement. The associated contribution to more sustainability and climate protection in the real estate sector is more than just a nice side effect."

Montano was advised on the transaction by McDermott under the leadership of partner Frank Müller and technically by Kroll.

About Montano Real Estate
Montano is the highly specialized, like-minded partner for commercial real estate. We act consistently entrepreneurial and simplify complexity. From offices in Munich, Frankfurt and Berlin, we explore the market. We recognise opportunities quickly and exploit them boldly. For more than 10 years, we have been developing investment products for German and international institutional investors, consistently pursuing the goals of sustainability, yield and value enhancement. www.montano.eu

Contact
Montano Real Estate GmbH
Lenbachplatz 5
80333 Munich, Germany
Phone +49 89 24 21 69 80 0
Email presse@montano.eu