HighBrook Investors sells De Faun in Groningen
HighBrook Investors has sold iconic building De Faun located at the head of Herestraat in Groningen to the Bulten family. The monumental building was completed in 1935 and has many historical features such as mythical corner elements. In the past, the building was used as an office with a restaurant on the ground floor but since 1990 it has served as a shop. HighBrook has recently completed a full renovation of the building and has agreed a long-term lease with H&M for the entire property. Both the standard H&M shop and the H&M Home concept are located there.
The city of Groningen is the sixth largest city in the Netherlands and is the heart of the northern provinces. It is fundamentally a strong city driven by strong population growth, a growing tourism sector and it is a booming student town. Herestraat has comparable numbers of passers-by as the main shopping streets of the G4 cities and has proven itself to be a prime retail location in recent years.
Loes Ingwerda, Associate Director Retail Capital Markets at CBRE: “The inner cities of the Netherlands are being hit hard by the COVID-19 crisis. However, certain cities have been able to retain an above-average level of interest from investors. We have observed a trend in which private investors with a long-term vision in particular are seizing the opportunity to acquire iconic properties in inner cities. De Faun is a good example of this.”
The vendor was advised by CBRE and its asset manager Everglow Real Estate and received legal advice from Loyens & Loeff. The buyer was advised by Cushman & Wakefield.