Blackstone in talks to buy Frankfurt office towers

US private equity giant Blackstone is close to signing the acquisition of the Pollux office tower in Frankfurt from Germany's IVG Institutional Funds and is reportedly also in talks to buy the nearby Messeturm scheme from German fund managers GLL and KanAm.

According to well-informed market sources, Blackstone is on the verge of inking the purchase of the 130-metre high Pollux complex in Frankfurt's Westend district.

The 32,000 m2 scheme over 32 floors is largely vacant and is being sold for an undisclosed price.

Blackstone is also understood to have offered €250 mln for the nearby Messeturm tower, although the asset is said to be valued at €400-500 mln.

Built in 1991 by Tishman Speyer as Europe’s largest skyscraper, the 247-metre high office tower offers 62,000 m2 across 63 storeys. GLL and fund manager Kanam bought the asset from the developer for around €440 mln in 2002. The scheme is about 70% leased.

The building, which is being sold through JLL, was refinanced in early 2012 with a €155 mln loan from Pbb Deutsche Pfandbriefbank and Landesbank Baden-Württemberg (LBBW).

All parties declined to comment.