ING Real Estate steps into German offices

ING Real Estate Investment Management has entered the German office investment market for the first time with the purchase of a building in Frankfurt’s central business district.

The office building has a total of about 2,716 m² of lettable area over 6 levels with 26 parking bays. It is located on the Bockenheimer Landstrasse in central Frankfurt. The property is currently being fully renovated and the work is due to be completed by the end of October 2006. The entire building is leased on a 10-year contract to Mayer, Brown, Rowe & Maw LLP, one of the world’s largest Law companies.

ING REIM said the acquisition on behalf of the ING Real Estate European Office Fund (EOF) reflects growing confidence in the outlook for Germany's economy and recovery in the country's office markets. Further yield compression is forecast by ING REIM's research team. The new holding was bought from a private company and will add further risk diversification to the portfolio of the EOF, ING said.

'The purchase of this asset represents ING’s entry into the German office market. The quality of this fully refurbished building, the quality of the tenant and the prime location provide a secure basis on which to continue investing in the office sector in Germany on behalf of EOF as well as for our other European Funds,' Pieter Hendrikse, chief executive of ING REIM Europe, said.

The company is also in detailed negotiation in relation to other 'significant projects' in the German office market. In the year-to-date, ING REIM Europe has transacted in excess of EUR 1.9 bn over the past 12 months in property investments on behalf of its European and international clients.