The future anchor tenant has leased three floors and is also planning a new Nespresso flagship boutique at the location. Since taking over the asset management mandate, Hines has been working on the strategic realignment of the residential and commercial building at number 9. Handover to Nespresso has already taken place with opening scheduled for March 2021.
Christoph Reschke, Senior Managing Director at Hines Immobilien, says: “We are very pleased about the successful new lease, especially in this thoroughly challenging market environment for retail properties. With Nespresso, we have gained a renowned tenant who is an excellent match for the property and the prestigious address in Vienna’s city center. The leasing success shows that our concept for the realignment of the property is convincing. At the same time, we have started marketing the other spaces, aiming for a balanced tenant mix.”
Hines took over active asset management for the property in early 2020, along with seven other mixed-use properties in Germany, Austria and France. All assets are owned by a German pension fund. The realignment at Kärtnerstrasse is taking place in response to changing retail requirements. The space, which was originally large and contiguous over several floors, is being divided into smaller units that can be used sustainably. Modernized space for office and residential tenants will be created on the upper floors.
The property is located in Austria’s most popular shopping street and the capital’s old city center. Apple and Swarovski, as well as many other well-known retailers, are in immediate vicinity.
Hines was advised by DPC Real Estate and BNP Paribas.