More than one-and-a-half years ahead of its completion, German insurer and asset manager HanseMerkur Grundvermögen has agreed to acquire the new headquarters of media group Frankfurter Allgemeine Zeitung (FAZ), one of the most prestigious office projects currently under construction in Frankfurt, for one of its investment vehicles.
HanseMerkur is paying €196 mln for the asset, which will provide 27,300 m2 of space across 18 stories upon completion in the third quarter of 2022.
The tower will be realised by developer and vendor UBM Development (75% share) together with the Paulus Immobiliengruppe (25%).
'The FAZ Tower proves that the demand for first-class office buildings in major European cities is unbroken despite the pandemic,' commented Thomas G. Winkler, CEO of UBM Development. 'In the current challenging market environment, the risk appetite of investors is declining – their focus has shifted more to prime locations and partners with top credit standings. This project offers the perfect mix from an investor’s viewpoint: a well-known developer with strong financials and a long-standing track record and a 15-year lease with a top quality tenant at an excellent location.'
After Zalando and Scout24, the 60-metre-high FAZ Tower represents UBM’s third headquarters development for a well-known German corporation within a very short time. The asset is leased to FAZ on a 15-year contract.
