Commerz Real to develop 140-metre high tower in Frankfurt

German fund manager Commerz Real has agreed to acquire a tower project in the centre of Frankfurt on behalf of its hausInvest open-ended real estate fund for an undisclosed amount.

The company is teaming up with developer Groß & Partner to build the 140-metre high complex on the former AfE site, which provides 4,000 m2 at Senckenberganlage 15.

In total, the tower will provide 49,700 m2 of space on completion at the beginning of 2019.

Spanish hotel group Meliá has signed a 25-year lease agreement on the lower storeys up to the 15th floor and will use the space to house a four-star hotel offering 290 rooms.

In addition, the complex will provide around 300 apartments and 230 parking spaces.

'With this transaction we are continuing to pursue our strategy of securing attractive assets for the fund in good time by getting involved at a very early stage and thus participating in the resulting value creation at a considerably earlier point in time. At the same time we are expanding our investment volume in the urban living segment – as demonstrated most recently with the commitment to the Burstah Ensemble in Hamburg,' said Andreas Muschter, CEO of Commerz Real.

Groß & Partner Grundstücksentwicklungsgesellschaft will manage the project, which will be launched in early 2016.