Allianz Real Estate is acquiring a €1.4bn office skyscraper in Frankfurt on behalf of a joint venture involving Germany’s largest pension fund Bayerische Versorgungskammer (BVK).
The real estate manager is forward funding Tower 1 (FOUR T1) of the new FOUR development, on behalf of the joint venture between several Allianz group companies and BVK, which is investing through Universal-Investment.
FOUR T1, which is being developed by Gross & Partner, is a 233-metre building offering more than 82,500sqm of which 74,800sqm will be offices – across its 54 floors. Two-thirds of FOUR T1’s office space has already been pre-let.
The building, expected to be completed in 2024, is part of a development consisting of four towers.
The acquisition is the second joint venture between Allianz and BVK fund. The pair in 2019 acquired the EDGE East Side Tower in Berlin in a forward funding deal.
Annette Kröger, the CEO for north and central Europe at Allianz Real Estate, said the acquisition ”demonstrates our ability to source the best assets for our investors and emphasizes our continued conviction” towards prime, future-oriented offices.
“FOUR T1’s combination of intelligent technologies and focus on sustainability will offer its users unmatched comfort and well-being while also contributing to our target to reduce carbon emissions across our real estate portfolio by 25% by 2025 and be carbon net-zero by 2050.”
Nicole Pötsch, the head of acquisitions and sales for north and central Europe at Allianz Real Estate, said: “Frankfurt is one of the most influential business locations in Germany and the financial centre of Europe.
“The city’s central business district is characterised by a low vacancy rate at 2.8% and limited office supply until 2024 and has shown tremendous resilience during the pandemic. That a number of the leases for FOUR T1 were signed during the pandemic underlines the attractiveness of the asset and its location.“
Rainer Komenda, the head of real estate investment at Bayerische Versorgungskammer, said: “As members of the Net-Zero Asset Owner Alliance and a signatory to the UN Principles for Responsible Investment, BVK is committed to making its contribution to limiting global warming to 1.5 °C.
“Our real estate investments, therefore, must adhere to these membership principles, which is why the opportunity to co-invest with Allianz on FOUR T1, with its focus on sustainability, held such strong appeal.”
Felix Becker, real estate investment DACH at Bayerische Versorgungskammer, said: “We are delighted to once again invest with our proven partner Allianz in this landmark asset. The FOUR ensemble and in particular Tower 1 will set new standards in real estate in all aspects.”
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