German investor and asset manager GEG has acquired the Garden Tower in the heart of Frankfurt’s banking district from a core-plus fund advised and managed by Tristan Capital Partners.
The transaction price amounts to €275 mln.
Designed by architects Novotny Mähner Assoziierte, the building was constructed between 1973 and 1976 as a head office for Hessische Landesbank (Helaba), which used it until 1999. The building consists of two towers: the higher Tower A reaching a height of 127 metres over 25 floors and Tower B with 15 floors.
The LEED Gold-certified complex provides 27,000 m2 of office space, a business centre as well as 111 underground parking places. It is let to three main tenants, Société Générale (occupying 31% of space), AIG Europe (14%), and co-working space provider Tribes (10%). The occupancy rate currently stands at 95%.
Tristan originally acquired the building in December 2015 for €175 mln, adding it to the Curzon Capital Partners IV (CCP IV) fund. It launched the sale of the building through CBRE in April this year.
'Garden Tower has emerged as one of the most attractive high-rise buildings in Frankfurt’s Central Business District following the successful execution of our business plan,' said Jean-Philippe Blangy, head of asset management at Tristan Capital Partners.
With the Global Tower development, which is currently under construction, and the Japan Center acquired towards the end of 2017, GEG now holds three prominent properties in the centre of Frankfurt’s banking district – with an aggregate investment volume in excess of €850 mln.
'The Garden Tower complements our investment strategy for high-rise buildings with superb location in Frankfurt/Main,' said Ulrich Höller, CEO of GEG. 'This investment clearly demonstrates that – alongside the Japan Center and the Global Tower development – we are convinced about the potential of micro-location development in the centre of Frankfurt’s CBD.'
The buyer was advised by Ashurst and Drees & Sommer; Greenberg Traurig and PWC advised the seller. Barings Real Estate worked as operating partner with Tristan. CBRE acted as sales broker and Eastdil Secured as financial advisor.
