Commerz Real sells Frankfurt tower to Qatar and Finnish investors
Qatar Investment Authority (QIA), Varma Mutual Pension Insurance Company and Elo Mutual Pension Insurance Company have joined a consortium to buy the TaunusTurm skyscraper in Frankfurt.
Tishman Speyer, which co-owns the 65,400sqm asset with Commerz Real, is leading the consortium.
The announcement comes the same day it was revealed that Commerz Real, the fund management arm of Commerzbank, is selling another Frankfurt office building to PGIM Real Estate and local developer FGI.
Tishman Speyer, which developed the building, will continue to own a stake but has brought in new capital in the form of sovereign wealth fund QIA and Finnish institutional investors Varma and Elo.
Last year, IPE Real Estate reported that Varma was looking to invest significantly in European real estate. Earlier this year, it bought a Swedish shopping centre in joint venture with Capman and Cavendo.
Elo, created in 2014 through the merger of Pension Fennia and LocalTapiola Pension, told IPE Real Estate last year it would look for new European real estate investments to maintain its allocation to the asset class.
No financial details of the transaction were disclosed, but it had been reported earlier this year TaunusTurm could be valued between €500m and €600m.