Silberturm is the latest high-profile tower to be traded in the German financial capital this year as investors' run on defensive assets continues. The transaction is the focus of a deal in depth article in the December edition of PropertyEU Magazine.
Silberturm is the latest high-profile tower to be traded in the German financial capital this year as investors' run on defensive assets continues. The transaction is the focus of a deal in depth article in the December edition of PropertyEU Magazine.
Three years after shelving the sale of the Silberturm office tower in Frankfurt due to lack of investor interest, Commerzbank has divested the asset to IVG Immobilien in a move that underscores the city’s status as a safe haven amid growing market uncertainty. Commerzbank's first attempt to offload the Silberturm (or ‘Silver Tower’) in late 2008, shortly after taking over the asset as part of its acquisition of Dresdner Bank, left investors cold.
The 166-metre high skyscraper was vacant and outdated, and real estate and financial markets were busy grappling with the impact of the credit crisis. Since then, the German bank has implemented a EUR 100 mln renovation programme to help restore the image of what once was an icon of Frankfurt’s skyline as well as the highest building in Germany. The full leasing of the asset last year in the largest letting deal of 2010 also helped make the skyscraper a more appealing choice for risk-averse investors.
Silberturm was put back on the market in early 2011, this time capturing multiple bids. ‘The asset drew interest from all kinds of investors, both German and international, because demand for core products remains particularly strong,’ commented Oliver Barth, managing director of BNP Paribas Real Estate and Frankfurt regional director, who was mandated to advise on the deal in April.
The full article appear in the December edition of PropertyEU Magazine. Click on the link below to subscribe
