CA Immo exchanges on two-thirds of Frankfurt tower

Austrian property group A Immobilien Anlagen is selling a majority stake in its landmark Tower 185 office scheme in Frankfurt to two German pension funds for around €330 mln.

Vienna-based CA Immo said it will retain a one-third stake in the building and the responsibility for asset management.

The deal values the asset at around €500 mln, and coincides with the agreement with German pension fund Bayerische Versorgungskammer (BVK) to provide a €300 mln long-term mortgage loan for the property.

'The partial disposal successfully concludes the largest development project undertaken by the company to date,' commented Bruno Ettenauer, CEO of CA Immo. 'This step is aligned with our strategic goals and enables us to reap further benefits from both the location's growing popularity and the special quality of this property.'

Reaching to a height of 200 metres, Tower 185 provides a 100,000 m2 of space on Friedrich-Ebert-Anlage between Frankfurt's banking quarter and the convention centre. The building was completed in January 2012 and is mainly let to PwC, which occupies 71,000 m2 and uses it as its Frankfurt headquarters. The asset is currently 80% let.

CBRE advised on the deal.

Separately, CA Immo announced on Tuesday that it has completed the new InterCityHotel at Berlin’s central station and handed it over to the Steigenberger Group after a construction period lasting almost two years. CA Immo’s investment in this building amounts to around €53 mln.

The InterCityHotel, situated on Katharina-Paulus-Straße, has 412 rooms spread over a total of eight floors.