German office investor Godewind Immobilien has acquired the City Gate office tower in Frankfurt for €85 mln from an entity asset-managed by HRO Germany.
The 28-storey building, comprising 23,308 m2 of rental space, is situated on a 3,600 m2 plot on Nibelungenplatz in Frankfurt's Nordend. Previously known as the Shell Tower, it was modernised in 1993 and 2018.
The multi-tenant complex is around 87% leased, according to the vendor's agents, CBRE Germany. State body Land Hessen is the main occupier, with an average 6.7 years remaining on the lease.
Godewind said that the asset had 'significant appreciation potential', with a potential rent for full occupancy of around €4.3 mln per year. The current rent is €3.8 mln, corresponding to a gross initial yield of around 4.5%.
The transaction is expected to complete in the third quarter of the year.
CBRE Frankfurt handled the marketing and sales process on behalf of the vendor. Clifford Chance was the legal advisor for the seller.
