DeAWM, ECE keep mum on report of €800m PalaisQuartier deal

Deutsche Asset & Wealth Management (DeAWM) and ECE have declined to comment on a news report that they are to acquire the PalaisQuartier urban regeneration scheme in Frankfurt for about €800 mln.

Website Debtwire cited well-informed sources as saying that Deutsche Bank's investment division and Hamburg-based shopping centre specialist ECE entered into exclusive negotiations with the vendor, Rabobank of the Netherlands, in June and are now poised to clinch the deal.

German lender LBBW has agreed to provide a senior loan of 50-60% loan-to-value at 85 basis points above Euribor, Debtwire said.

DeAWM and ECE declined to comment on the report when contacted by PropertyEU.

Centred on the baroque Thurn und Taxis city palace, PalaisQuartier is located on the Zeil high street in Frankfurt and comprises a 77,000 m2 shopping centre, a 48,000 m2 office tower, a 22,000 m2 hotel and a 1,400-space underground parking garage.

Rabobank, which is acting through a subsidiary, KP Investments, is said to have initially sought €1 bn for the scheme. Other bidders, according to Debwire, were Abu Dhabi Investment Authority (ADIA), CBRE Global Investors, LaSalle Investment Management and Hines.