CBRE Global Investors has acquired Vienna's IZD Tower for a Korean separate account client in what the company says is the largest transaction in Austria for two years.
The purchase price for the 142-metre office building was not disclosed, but is understood to be in the region of €260 mln. The vendors, Signa Holding, paid more than €200 mln for the asset in 2010, Austrian media reported.
Rumours have been circulating since March that Korea Post, South Korea's postal service, and Koramco Asset Management Company were looking to buy the building for around KRW 350 bn (€262 mln).
The 39-storey tower, with an adjacent six-storey building, has 65,000 m2 of space and is 94% occupied with a weighted average unexpired lease term of over 10 years. Tenants include government agencies, international companies and the United Nations European Campus.
Katarina Horvathova, transaction manager CEE for CBRE GI, said: ‘As the second biggest German-speaking city globally, Vienna continues to be an important business hub offering an attractive pricing/risk premium. IZD Tower offers our client a high-quality stabilised core investment in one of the most attractive locations for international cities.’
Christoph Stadlhuber, CEO of Signa, said: ‘We have managed to maintain IZD Tower’s status as a Grade A trophy asset through continuous and state-of-the-art asset management since acquisition in 2010. The landmark building benefits from an exceptional level of tenant retention and has repeatedly attracted high profile occupiers. With CBRE Global Investors we have been able to achieve a great outcome for the sale of the IZD Tower.’
