German fund manager Union Investment has announced on Tuesday the purchase of a 100-metre-high tower currently under construction in Frankfurt’s banking district.
The vendor and project partner is Groß & Partner. Financial details were not disclosed.
Completion of the asset, located in the Four district, is scheduled for 2022.
‘Our investment in this development project is our largest real estate transaction in Frankfurt for more than 10 years,’ commented Alejandro Obermeyer, head of investment management DACH at Union Investment.
The complex will be added to the fund UniImmo: Deutschland.
With its 24,000 m2 of rental space over 25 storeys, the project is the largest office scheme in the company's Frankfurt portfolio, which currently includes 15 commercial properties.
At the time of the deal, the property was already more than 35% pre-let. Of the future tenants, law firm Baker McKenzie will occupy around 8,200 m2 in the finished building.
Martin J. Brühl, chief investment officer, explained: ‘Acquiring development projects and contributing our own expertise has been one of Union Investment’s key strengths for many years. It is benefiting us enormously in the current market phase in Europe and beyond.
‘We recently acquired the Grand Central development at Saint-Lazare station in Paris, which is of a comparable size and has a similar construction period, he concluded.
Jens Hausmann, member of the management of Groß & Partner, commented: ‘The early sale is further proof of the attractiveness of this location and the quality of the district development.'
In this transaction, Union Investment was advised by Savills, Hogan Lovells, P+P Pöllath & Partners.
