Inovalis Real Estate Investment Trust announced that it successfully completed the purchase of a DGNB Gold certified office property (the "Property") in Neu-Isenburg, Germany, as part of a 50-50 joint-venture arrangement with a global institutional investor. The Property is a Class A office building constructed in 2013 and has a gross leasable area of approximately 12,500 m² (134,550 sq. ft). The multi-tenant property is fully occupied and anchored by the high profile tenant Arrow Electronics. In addition to outstanding build quality, the Property has a weighted average lease term of 5.2 years. The Property is located in Neu-Isenburg, a key mid-sized city in the greater Frankfurt area and located less than 10km from downtown Frankfurt. The Property is also anticipated to benefit from the future connection of the S-Bahn (Frankfurt subway network) via the Regional Tangent West and the adjacent urban development project "Stadtquartier Süd", which consists of a city led urban intensification project to develop mainly commercial and multi-unit residential properties, with the aim to create a new modern city center. Furthermore, the greater Frankfurt area is a leading financial hub within Germany, and is expected to experience continued macroeconomic tailwinds driven by "Brexit" and the move to continental Europe by corporations. The Property was acquired through a share purchase agreement, which valued the Property at approximately EUR 38.3 million and included a senior bank loan of EUR 21.4 million. With European interest rates continuing to remain at historical lows, the REIT intends to refinance this senior bank loan in first quarter of 2018 with a new, 10-year senior term loan of EUR 22.8 million. The REIT anticipates securing a few fixed rate loan for the property in the range of 1.70% to 1.75%. This transaction represents a going-in cap rate of approximately 5.8%, and is expected to be immediately accretive to both FFO and AFFO.