Eurocastle Investment Limited has sold EUR 219mln of property assets as part of its ongoing programme to harvest mature or non-strategic assets. The listed company, which focuses on German commercial real estate, has sold two buildings at an average NOI (Net Operating Income) yield of about 4.5%. One of the assets, the Furstenhof office/commercial building in Frankfurt am Main, was sold to Hamburg-based Union Investment Real Estate in a deal worth around EUR 129mln. Further details on the other asset were not disclosed.
Eurocastle Investment Limited has sold EUR 219mln of property assets as part of its ongoing programme to harvest mature or non-strategic assets. The listed company, which focuses on German commercial real estate, has sold two buildings at an average NOI (Net Operating Income) yield of about 4.5%. One of the assets, the Furstenhof office/commercial building in Frankfurt am Main, was sold to Hamburg-based Union Investment Real Estate in a deal worth around EUR 129mln. Further details on the other asset were not disclosed.
Built in 1900, Furstenhof comprises some 18,450 m2 of office space. It was fully modernised in 1992 and is let on a long-term lease to Dresdner Bank. The surrounding area is home to international financial service providers and law firms. The nearby underground station at Willy-Brandt-Platz provides a direct link to Frankfurt's main railway station and the city centre.
In a statement, Eurocastle said that these sales represent a portion of the EUR 350mln of German commercial real estate assets which are currently being sold. Additional sales are expected to close in the near future, it added.
