Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is acquiring two office buildings situated next to each other in Frankfurt’s European Quarter from property developer Aurelis Real Estate within the framework of a forward deal.
The two properties - DB Brick and DB Tower - are currently under construction in the immediate vicinity of the fairgrounds and close to the central railway station and are let to Deutsche Bahn under a new 20-year term.
Upon completion in 2020, they will provide 53,800 m2 of gross lettable area and 374 underground parking spots. Financial details were kept confidential.
The DB Brick building is being bought for a German plan sponsor and a superannuation scheme. The DB Tower building is earmarked for an individual fund on behalf of another German superannuation scheme. Both assets were marketed by JLL.
'The transaction reaffirms our strategy to secure particularly attractive property developments in an early stage,' said Hans-Joachim Lehmann, managing director at Warburg-HIH Invest. 'The long lease term, the blue-chip credit worthiness of the incoming tenant and the strategically important location in Europe’s second largest place of finance will make it possible to generate stable long-term cash flows.'
The property development is the largest structural engineering project pursued by Aurelis at the moment.
'Construction work is right on schedule,' said Joachim Wieland, CEO of Aurelis.
