Fund manager BlackRock Real Estate has acquired a 28,500 m2 office building in Frankfurt as part of its strategy of investing in office properties with clear value-add potential in the Big-7 German cities.
Financial details were not disclosed.
The Grade B building is located in Frankfurt’s largest back office cluster, known as Lyoner Viertel, and is currently 83% let.
The location is part of an urban regeneration scheme, which aims to provide an attractive mixed-use environment, incorporating residential, retail and hotel offerings.
Wolfgang Koedel, director within BlackRock’s German real estate business, commented: ‘Frankfurt, along with Berlin and Munich, are the three largest and highly institutionalised office markets in Germany which provide for great liquidity to investors. This investment offers an attractive opportunity to invest in an established yet transforming submarket. We will focus on providing contemporary, efficient space to occupiers paired with superior infrastructure.’
HoganLovells, Savills and Drees und Sommer advised BlackRock on the transaction.
BlackRock Real Estate is part of investment manager BlackRock and invests in strategies across the risk and return spectrum. The business manages over $21 bn of private and public real estate equity and debt on behalf of investors worldwide.
