Frankfurt-based German Estate Group (GEG) has announced the acquisition of the renowned IBC – International Business Campus - in Frankfurt am Main in an off-market transaction worth €400 mln in the largest single property deal in Germany so far in 2016.
The property was sold by landlord RFR Holding after it managed to raise the market value of the IBC considerably through massive capital expenditures as well as lease signings and renewals.
US-based RFR Holding, which was founded by German-born Aby Rosen and Michael Fuchs, bought the complex in November 2014 from Canada's Ivanhoé Cambridge for €300 mln.
The complex consists of three buildings including a 112-metre high tower and offers a total of 85,000 m2 of space. It is fully leased, with tenants including Deutsche Bank and Degussa Bank, as well as German firm Universal Investment and state bank KfW. The weighted average lease term is around 10 years.
Designed by architectural firm Köhler Architekten on behalf of Deutsche Bank, the asset was built in 2003-04 and acquired in 2005-07. It boasts a Leed Gold environmental certificate.
The transaction brings the total amount invested by GEG since its foundation in early 2015 to over €640 mln. In addition, the company - which is jointly owned by KKR and Deutsche Immobilien Chancen Group - has more than €1 bn in property developments under management, including the MainTor scheme in Frankfurt, the Opera Offices in Hamburg, and Junges Quartier Obersendling in Munich.
'With the IBC, we acquired an attractive premium building of campus character in a contested market. The outstanding competitive position of the IBC will ensure a permanently high occupancy rate and stable dividend yields,' said Ulrich Höller, CEO of GEG.
Berlin Hyp financed the deal. GEG was advised by CMS Hasche Sigle and Jebens Mensching, while Clifford Chance acted as counsel for RFR.
