Qataris said to be circling IVG's Squaire at Frankfurt Airport

The Emirate of Qatar is reportedly negotiating with IVG Immobilien to acquire The Squaire, the mixed-use jewel in the portfolio of the embattled German property firm.

German magazine WirtschaftsWoche reported that Qatar, acting through investment company Precision Capital, is in talks with IVG to acquire the office and hotel scheme for €850 mln. This is considerably lower than the development and construction cost of €1.2 bn but higher than the current book value of €800 mln.

The publication also suggested Qatar is interested in buying the Gherkin tower at 30 St Mary's Axe in London for about €700 mln.

IVG's closed-end property fund EuroSelect 14 and UK-based investment bank Evans Randall acquired the 180-metre tower in a 50-50 joint venture for €950 mln at the height of the market in 2007. Earlier this year it emerged that IVG was seeking ways to keep the EuroSelect 14 afloat as disappointing rental income led to a drop in value and pressure from creditor banks to reduce the debt.