German property group ABG Real Estate and real estate fund manager HanseMerkur Grundvermögen have jointly acquired an office tower in Frankfurt from a private investor, with plans to redevelop the iconic asset.
The Oddo BHF-Tower is fully let to Franco-German financial group Oddo, which has used the building for several decades, first as owner and later as tenant. When the firm moves out in 2024, ABG said it intended to redesign the tower while respecting heritage legislation, with a view to revitalising the building.
According to the firm, the redevelopment should create a scheme that conforms to top quality new-build specifications. The expected total project investment volume amounts to over €300 mln.
Ulrich Höller, managing partner at ABG, said: 'With the acquisition of this extraordinary landmark property, ABG has returned to the Frankfurt real estate market as an investor and developer – a market that I am personally convinced is a good place to invest!
'This iconic structure, caught between modernity and tradition, will once again stand out in Frankfurt’s architectural landscape after it has been revitalised. This is our common goal at ABG and HanseMerkur.'
The project is scheduled for completion by 2027 at the latest, with implementation and construction work commencing after the tenant vacates the building.
Lutz Wiemer, deputy CEO at HanseMerkur Grundvermögen, added: 'The fact that we invested in this high-profile property development together with ABG as a joint venture partner once again demonstrates that we are not only active as an investor but have firmly established our profile as a potential project and financing partner.'
The sales process was managed by CBRE, while the transaction was accompanied by the law firms Hengeler Mueller and Wagensonner and the financing was supported by DZ Hyp.
