A strategic partnership led by Schroder Real Estate (Schroders) and funded by Ilmarinen Mutual Pension Insurance Company alongside another international institution completed the purchase of Pollux (Platz der Einheit 2), a 32 storey office tower in Frankfurt, based on a gross property value in excess of €220 million.
Pollux is centrally located in the European Business District, surrounded by the Central Station area, Banking District, Westend and Europaviertel. The building is adjacent to Festhalle/Messe U-Bahn station, Messe trade fair and Skyline Plaza, a major shopping mall with 180 shops and restaurants. The local area has been transformed over the last two decades with multiple attractive leisure and residential as well as office developments, and has become one of the most desirable locations in Frankfurt.
The Grade A building was originally built in 1997 and has recently undergone a comprehensive refurbishment, with approx. 35,000 sqm of rental floor area 95% occupied by prestigious tenants such as Zurich Insurance, Hauckschuchardt, Fintech Community, Aon and Lavazza.
The existing rents in the building are significantly lower than prime rents of Frankfurt, where there is forecast to be strong rental growth, partially due to financial service firms planning to expand offices in the city.
Duncan Owen, Global head of Real Estate at Schroder Real Estate said:
“Pollux is a high quality building in a well-connected, mixed-use neighbourhood with a good blend of income security and reversionary potential. The investment is consistent with our strategy of acquiring assets with strong fundamentals in Winning Cities. We expect above-average levels of growth in this market and we have been actively looking to add to our investments in Frankfurt. Schroder Real Estate is committed to creating and managing long-term strategic partnerships with major institutional investors, and we are delighted to continue with this latest acquisition”
Mikko Antila, Head of International Real Estate at Ilmarinen commented:
“The investment supports Ilmarinen’s strategy to improve the geographical diversification of its real estate portfolio. Pollux meets our investment criteria well due its central location, high quality building specifications and long and secure income profile. We take a positive view on the continued strength of the Frankfurt office market, and the see the city establishing itself as the financial center of the European Union.”
For further information, please contact:
Nicole Carey Tel: +44 (0)20 7658 4466/ nicole.carey@schroders.com
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