UBS fund sells FAC 1
The public AIF UBS (D) Euroinvest Immobilien has sold Frankfurt Airport Center 1 (FAC 1). The buyer is a joint venture of New York-based investment company Madison International Realty and investment manager Peakside Capital.
Built in 1988, FAC 1 consists of two interconnected building atriums and comprises around 48,000 square meters of office space, conference and seminar rooms, and 182 parking spaces. It is located at Frankfurt Airport with direct access to Terminal 1 and the ICE train station. The largest tenants in the property are Lufthansa, the airport company Fraport and the Airport Club. In total, the property has more than 70 users.
It is the first project Madison and Peakside are acquiring together. According to their own statements, they intend to invest an amount in the multi-digit million range to reposition the property. Peakside is to assume responsibility for operational management.
"With this acquisition, we have secured a high-quality property in an excellent location in one of our target markets, which promises value enhancement potential through upgrades to the property and the tenant mix," says Matthias Cordier, Head of Investment Germany at Madison.
Boris Schran, Managing Partner at Peakside, says the goal is to attract new tenants to FAC 1. The focus is on users whose businesses are directly linked to the airport location, but also on companies that need to react to Brexit, as well as multinational companies and corporations that benefit from a location at the airport.
