Korean consortium snaps up IVG's 'Silver Tower' in Frankfurt

Korean asset manager Samsung SRA has led the consortium acquisition of the Silberturm, or Silver Tower, in Frankfurt from IVG Institutional Funds. The investment volume was not disclosed but in October the consortium was reported to be in talks to buy the 32-storey tower for €450 mln.

Reporting the sale, IVG Institutional Funds said Hines acted as investment manager for Samsung and will carry out the long-term asset management for the property.

IVG Institutional Funds was advised on the transaction by BNP Paribas Real Estate, Clifford Chance and Drees & Sommer. Samsung SRA Asset Management was represented by Ashurst LLP and Chandler KBS.

The 166-metre high property is in a central location on Jürgen-Ponto-Platz at the edge of Frankfurt’s Bahnhofsviertel district. The former headquarters of Dresdner Bank is one of the best known office towers in the metropolis on the Main River. The tenant is Deutsche Bahn with its in-house IT service provider DB Systel.

The property was awarded the German Green Building Council (DGNB)’s Silver certificate for its complete refurbishment and energy-saving renovation in 2012 and covers a total rental area of more than 50,000 m2 spread over 32 floors and two basement levels.

The transaction also covered the adjacent 'Executive Headquarters' building with an area of 22,000 m2, which is fully let to Deutsche Bahn.

Around three years ago, this building was acquired from Commerzbank by eight institutional investors led by IVG Institutional Funds.

The deal comes a day after IVG Immobiliën, the listed entity of the IVG business, dropped the sale of its flagship development The Squaire at Frankfurt Airport after bids from international investors fell short of its valuation of €700 mln.

IVG Institutional Funds is a provider and manager of structured real estate products for institutional investors with assets under management of around €11 bn.

Samsung SRA Asset Management has $3.5 bn (€3 bn) of assets under management. It is a wholly owned subsidiary of Samsung Life Insurance, the largest life insurance company in Korea with $200 bn (€171 bn) of assets under management.

Hines is a privately owned real estate firm involved in real estate investment, development and management worldwide. It has some $44 bn of assets under management, making it one of the largest real estate organisations in the world.