German listed commercial property landlord Deutsche Mittelstand Real Estate (Demire) has acquired a 50% stake in the Cielo office complex in Frankfurt from RFR Group, and inked a purchase right for the entire property.
In 2026, Demire will be able to take over 100% of the office - which is valued at €270 mln - under the terms of the deal.
Located at Theodor-Heuss-Allee 100-104 in Frankfurt, Cielo was built in 2003 and extensively refurbished from 2018 to 2020. It is let to Commerzbank on a long-term basis.
Cielo comprises around 37,000 m2 of total space and is situated within walking distance of the Frankfurt Trade Fair, on one of the city's main roads.
Ingo Hartlief, chairman of the management board of Demire, said: 'With this transaction, we are consistently continuing Demire's realignment. We expect this transaction to generate an average FFO I contribution of around €5 mln per annum in the coming years. In addition, we have the option to fully acquire the building complex from our partner RFR in five years on terms already agreed.'
Dr. Alexander Koblischek, managing director of RFR Management, added: 'We are pleased to have Demire as a strong partner from the region for this exciting property. After full occupancy and comprehensive refurbishment by RFR, we are now looking forward to the next chapter of Theodor-Heuss-Allee.'
