Swiss specialty chemicals company Clariant has sold the Industrial Park Fechenheim, in Frankfurt, Germany, to Frankfurt-based real estate investor Lugman Group.
The deal, valued at €95 mln, is expected to close in 2025.
The industrial park, located in eastern Frankfurt, covers approximately 428,000 m2.
Clariant anticipates a book gain of approximately CHF 70 mln (€74.5 mln), which will be recorded as an exceptional item in the company’s EBITDA at closing.
The company plans to use the proceeds to reduce debt and strengthen its balance sheet, reflecting its commitment to maintaining an investment-grade credit rating.
Knight Frank Industrial managed the bidding process on behalf of Clariant. The firm sought an investor who would consider the interests of the current tenant, chemical company Allessa, and other businesses on the property.
This is the first investment for Lugman Group, which describes itself as a single-family office specializing in real estate. The company plans to preserve the chemical park and develop only the unused areas.
Together with the city of Frankfurt, a new district for various commercial uses is planned for the western part of the site, covering approximately 120,000 m2.
Although no rental agreements have been signed yet, discussions are already underway with five companies from the biotechnology, pharmaceutical and technology sectors, as well as a data centre operator. The investor also plans to establish a so-called retail park, which will accommodate small businesses.
According to preliminary estimates, Lugman Group plans to invest over €100 mln in the site.
