UBS buys Frankfurt Tower Center
British private equity real estate fund manager Benson Elliot has sold the Turmcenter office tower in Frankfurt am Main to UBS Asset Management for 155 million euros.
Benson Elliot acquired the 21-story high-rise, which was built in the early 1970s, vacant in December 2013 and then extensively renovated the property. The tower center opened in May 2016 and was certified LEED Gold. Special features of the property include a large entrance hall, flexibly configurable rental space and a parking garage with 400 spaces. Currently, 85 percent of the total 17,300 sq. m. is leased; tenants include the German Football Association and the law firm Fieldfisher. The average remaining lease term is around 9.3 years.
The Turmcenter is located at Eschersheimer Landstrasse 14 in Frankfurt's business district; shopping and leisure facilities are in the immediate vicinity. The property is very well connected to public transport; Frankfurt Airport is around 14 kilometers away.
UBS Asset Management's Real Estate & Private Markets has purchased the office tower for an individually structured mandate via share deal. The price of 155 million euros reflects a purchase yield of around 3.9 percent, UBS says.
Mark Gifford, Head of Transactions EMEA (ex CH), Real Estate & Private Markets at UBS Asset Management, says they were able to secure "a high quality, modern and sustainable investment at an attractive price." "We consider the timing for such an investment in Frankfurt as an office location to be optimal, as the increasing demand from international companies for prime locations in Frankfurt, in particular, is being met by a declining supply."
UBS was legally advised by Hogan Lovells on the transaction. Benson Elliot was advised by CBRE and the law firm Freshfields Bruckhaus Deringer. (ah)
