The fund management unit of JP Morgan has joined forces with a sovereign wealth fund from Singapore to acquire the OpernTurm office tower in Frankfurt's central business district. Although the financial details were not disclosed, the transaction is said to be in the region of EUR 550 mln.
The fund management unit of JP Morgan has joined forces with a sovereign wealth fund from Singapore to acquire the OpernTurm office tower in Frankfurt's central business district. Although the financial details were not disclosed, the transaction is said to be in the region of EUR 550 mln.
The 42-storey skyscraper came on the market two years ago when German fund manager KanAm pulled out of the acquisition in an effort to reduce the proportion of financial properties in its portfolio.
JP Morgan is teaming up with the Government of Singapore Investment Corporation (GIC) to buy the 168-metre high tower in Germany's financial centre. The trophy asset was developed by Tishman Speyer and completed in late 2009. The scheme, which is being sold by a joint venture between Tishman Speyer and UBS, consists of over 67,000 m2 of office accommodation, over 50% of which has already been leased to several tenants in the financial industry, consultants and international law firms. UBS has taken 28,000 m2 in the complex.
The deal is understood to be 60%-financed by debt provided by UniCredit, Helaba and Bayerische Landesbank. The purchase by JP Morgan comes just a few days after its acquisition of the Bishops Square office complex in London for £557 mln (EUR 657 mln). The vendor is a 75:25 joint venture between Oman Investment Fund, an investment arm of the Omani Government, and UK REIT Hammerson.
'The OpernTurm represents a new generation of high-quality, energy-efficient office buildings,' said Peter Reilly, head of European real estate at JP Morgan Asset Management. 'We are pleased to add this property to our growing portfolio of high-level and core properties in major European cities.'
JP Morgan Asset Management was advised by Freshfields Bruckhaus Deringer and PricewaterhouseCoopers. GIC was advised by Berwin Leighton Paisner and Ernst & Young and the seller was advised by Clifford Chance, Linklaters, CBRE, BNP Paribas, and UBS Investment Bank.