Union Investment buys Frankfurt office building for EUR 129m

Hamburg-based Union Investment Real Estate has acquired the Furstenhof office/commercial building in Frankfurt am Main from Eurocastle Investment in a deal worth around EUR 129mln. The property, located in the heart of Frankfurt's financial district, will be added to Union Investment's open-ended fund UniImmo: Deutschland, the company said on Tuesday.

Built in 1900, Furstenhof comprises some 18,450 m² of office space. It was fully modernised in 1992 and is let on a long-term lease to Dresdner Bank. The surrounding area is home to international financial service providers and law firms. The nearby underground station at Willy-Brandt-Platz provides a direct link to Frankfurt's main railway station and the city centre.

'This acqusition is an excellent fit with our portfolio strategy for UniImmo: Deutschland, which focuses on the German property market. Our aim is to make full use of investment opportunities involving properties with long-term leases that boost fund performance,' said Union Investment board member Frank Billand.

The Furstenhof deal was brokered by Atis Real, with additional support being provided by Drees & Sommer, HPC and law firm Latham & Watkins in Hamburg and Frankfurt.

Union Investment invested over EUR 400mln in Germany in the first six months of 2008. Acquisitions include the EUR 25mln purchase of the Schwedler Caree development scheme in Frankfurt/Main and the EUR 210mln investment in the Rhein-Gallerie shopping centre development in Ludwigshafen.