IVG acquires ECB tower in Frankfurt for €480m

IVG Institutional Funds has acquired the Eurotower, home of the European Central Bank in Frankfurt, for around €480 mln from US private equity real estate firm RFR.

The transaction has been structured as a share deal with RFR holding a minority stake.

RFR Holding GmbH, the German subsidiary of New York-based RFR, purchased the 40-storey tower for €430 mln in 2007 from fund manager Degi.

The building in Frankfurt’s banking district is currently being extensively renovated by RFR with completion expected by the end of 2015.

IVG IF acquired the Eurotower for a German pension fund as part of an individual mandate.

The company was advised on the transaction by engineering firm Arcadis and Clifford Chance on the legal side. Arnecke Siebold, HauckSchuchardt and BNP Real Estate acted for RFR in an advisory capacity. The transaction is subject to antitrust approval.

IVG IF said the acquisition represents ‘another milestone’ in its recent history. ‘Following the successful reorganisation of the company and the sale of the Silver Tower in 2014, IVG IF has recorded further growth of around €1 bn in the past six months. Tailored investment and management solutions for institutional investors based on individual or club mandates will remain the basis of the company’s future growth.’

IVG Institutional Funds appears in 34th position in PropertyEU's dealmaker ranking of investors by transaction volume during 2014. Check out the Top Investors App for the full ranking


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