IVG snaps up EUR 400m Silberturm in Frankfurt

Listed German property firm IVG has led the consortium acquisition of the iconic Silver Tower (Silberturm) building in Frankfurt's banking district from Commerzbank. Although financial details were kept confidential, the property is said to be valued at over EUR 400 mln.

IVG is taking a 10% share in the deal, while the vast majority of the equity is being provided by a number of institutional investors. 'Thanks to our excellent relationships with our investors and our extensive transaction expertise, we made use of a structured process to successfully raise over EUR 200 mln in equity for this outstanding investment within a short space of time,' said Wolfgang Schäfers, the newly-appointed CEO of IVG Immobilien.

Financing was provided by a major German pension scheme for a period of 10 years.

Originally built in 1978, the 166-metre Silver Tower has been undergoing a EUR 100 mln renovation programme since 2009.

On completion of the revamp in autumn 2011, the scheme is expected to receive Silver certification from the DGNB (German Sustainable Building Council). It provides a total of 72,000 m² on 36 storeys fully leased to railway group Deutsche Bahn which in May 2009 agreed on the lease in one of Germany's biggest rental deals in the past 20 years. The asset previously housed the head office of Commerzbank's Dresdner banking arm

IVG said the transaction is part of its strategy launched in 2010 to act as co-investor in institutional investment products from the property and infrastructure segments.

BNP Paribas Real Estate advised the seller. The transaction brings total commercial real estate investment in Frankfurt this year to over EUR 2.5 bn, up 30% on the same period a year before, noted Oliver Barth, managing director of BNP Paribas Real Estate and Frankfurt branch manager.