Schroder Real Estate has led a joint venture to buy a 32 storey office tower in Frankfurt for around €200m.
The partnership led by Schroders and funded by Ilmarinen Mutual Pension Insurance Company alongside another international institution has acquired Pollux in the German city.
The building was originally built in 1997 and has recently undergone a comprehensive refurbishment, with around 35,000sqm of rental floor area 95% occupied.
Duncan Owen, the global head of real estate at Schroder Real Estate said: “Schroder Real Estate is committed to long-term strategic partnerships and we are delighted to continue with this latest acquisition along with our close investors.
“Pollux is a high-quality building in a well-connected, neighbourhood which attracts occupiers from multiple alternative uses. The investment is consistent with our strategy of acquiring assets with strong fundamentals in Winning Cities that are benefitting from structural changes. We expect strong levels of income growth in this market.”
Mikko Antila, the head of international real estate at Ilmarinen, said: “The investment supports Ilmarinen’s strategy to improve the geographical diversification of its real estate portfolio. Pollux meets our investment criteria well due its central location, high quality building specifications and long and secure income profile.
”We take a positive view on the continued strength of the Frankfurt office market, and the see the city establishing itself as the financial centre of the European Union.”