Chinese investor Fosun Group and its European partner Resolution Property have completed their first acquisition in Frankfurt, with the purchase of the 30,000 m2 Estrella building for an undisclosed sum.
The 30,300 m2 six-storey office building, which is situated in the city's main business district Theodor-Heuss-Allee 44, will be refurbished and repositioned by Resolution to create a prime mixed-use development.
'Our aspiration for Estrella is to create a dynamic and exciting hub for creative and digital businesses, which will complement the area's business community and assist in the wider regeneration of the area,' commented Henning Keil, head of Germany investments at Resolution Property. 'Following on from our pioneering schemes at Alphabeta, Ampersand and Dept W in London, Estrella has the potential to contribute to Frankfurt’s growing appeal within the creative and start-up industry and the corresponding high demand for innovative and creative office space, which is currently lacking in the city.'
'Estrella is a significant step for Fosun Property’s European investment and management platform, marking the debut of Resolution Property in mainland Europe and representing a meaningful commitment to the German market. We look forward to similar value-add opportunities in the future,' added Alex Gong, vice president of Fosun Group and president of Fosun Property Holdings.
Works on Estrella are expected to start this year with completion expected at the end of 2018.
'Estrella is Resolution Property’s second acquisition with Fosun following the purchase of the Thomas More Square estate, London in March 2016. This is a major milestone for our investment strategy and we will continue to seek value-add real estate opportunities across Europe,' concluded Robert Laurence, chief executive of Resolution Property.
In July 2015, Fosun and Resolution formed a joint venture company, Resolution Property Investment Management (RPIM), to invest in value-add real estate opportunities in 14 countries across Europe. The jv is majority owned by Fosun, with the majority owned by Resolution Property's partners.
