Patrizia Spends $1.1 Billion on German Office Property

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Patrizia Immobilien AG, the Ausberg-based real estate company, is paying 800 million euro ($1.1 billion) for a collection of 36 German office buildings, in a transaction described as the country's biggest commercial real estate transaction of the year. 

The office properties are located in the German state of Hesse and leased to the federal government, according to a release. The properties total 450,000 square meters of space.

"It's an ideal investment for safety-oriented investors who are looking for long-term, stable income," Patrizia chief operating officer Klaus Schmitt told Bloomberg.

The seller is Austria based CA Immobilien wants to focus on building properties in Berlin, Munich and Frankfurt, chief executive officer Bruno Ettenauer told Bloomberg.

"The current market environment is ideal for selling the portfolio," Mr. Ettenauer said.

The deal is expected to close by the end of the year.