Deutsche Asset & Wealth Management, the investment arm of Deutsche Bank, is eyeing other mega deals in Germany following its acquisition earlier this week of the PalaisQuartier site in Frankfurt for €800 mln.

Deutsche Asset & Wealth Management, the investment arm of Deutsche Bank, is eyeing other mega deals in Germany following its acquisition earlier this week of the PalaisQuartier site in Frankfurt for €800 mln.

DeAWM has taken a 90% stake in the deal, with Hamburg-based developer ECE taking a 10% stake. ECE will also manage the adjacent MyZeil shopping centre, which forms part of the complex.

‘The deal represents our largest acquisition in Germany so far this year, reflecting our faith in the Frankfurt market,’ Jörn Stobbe, head of transactions and asset management for Germany, Austria and Switzerland at DeAWM, told PropertyEU. ‘The PalaisQuartier marks a unique investment opportunity for us. The site is in a prime location in Frankfurt, with fantastic views of the skyline, and offers a popular shopping mall on the Zeil, office space and a first class hotel. DeAWM would be open to similar deals in Germany, should we find the right investment opportunities,’ he added.

The PalaisQuartier is located in the heart of Frankfurt and comprises around 115,000 of rental space across five properties: the 33,800 m2 Nextower office block, the Jumeirah Frankfurt hotel comprising 26,300 m2, the 43,800 m2 MyZeil shopping centre and the recently restored 6,300 m2 Thurn and Taxis Palace. The scheme was sold by KP Investments, a unit of Rabo Real Estate Group, itself a unit of Dutch lender Rabobank.

Interestingly, despite unprecedented demand for prime assets in Germany, Rabo is believed to have failed to get its initial asking price of €1 bn, according to those who track the market.