German lender DekaBank has emerged as the financier behind the €220 mln acquisition of Pollux office tower in Frankfurt.
In a statement on Wednesday, the bank said it has arranged and fully underwritten a seven-year €92 mln senior investment facility backed by the asset on behalf of two institutional investors advised by Schroders Real Estate Investment Management.
Pollux is a 130-metre high tower originally built in 1997 and recently completely renovated. It provides 35,000 m2 of rental space, 95% of which is leased to companies such as Zurich Insurance, HauckSchuchardt, the FinTech Community (the TechQuartier), Aon and Lavazza.
Amar Latif, responsible for DekaBank’s German origination business, commented: 'The property was recently refurbished and is now almost fully let to good tenants on a reasonable Weighted Average Lease Length in an improving office location. There is the added attraction of potential upside on the current rents which together with very conservative Day One leverage and a strong sponsor makes this an attractive financing proposition for DekaBank.'
