GERMANY – The €2.4bn pension fund for dentists in the German state of North Rheine-Westphalia has acquired an office development in Frankfurt.

The purchase, brokered by BNP Paribas Real Estate, will see IVG gain control of a pre-war office building, as well as an adjacent six-storey development, through a Spezialfonds launched on behalf of the Versorgungswerk Zahnärztekammer Westfalen-Lippe (VZWL).

IVG said both came with existing tenants – the local branch of Berenberg Bank and US law firm Kaye Scholer, respectively – which had already committed to long lease agreements.

The asset manager added that BoLa 25 had total lettable space of 9,300 square metres and that both properties met LEED Gold standards, following a 2011 renovation of the historic office block.

The multi-storey new development was constructed at the same time, following the demolition of an existing building.

IVG would not disclose the purchase price agreed with previous owner DWI Group.

According to VZWL's most recent annual report from the end of 2011, the fund had a €214m allocation to real estate comprising 24 industrial properties, a residential building, a retirement home and the offices occupied by the dentist's association itself.

That year, the 8.8% real estate allocation outperformed all other asset classes, returning 9.1%.