US investor Apollo Global Management has acquired the BICC Business Center in Frankfurt on behalf of a number of its funds.
The high-rise building at Hanauer Landstrasse 328-330 was purchased from a Luxembourg-based company, whose identity was not disclosed, via a three-way negotiation managed by Savills Asset Management in London. Financial details were not disclosed.
The 13-storey tower has an occupancy rate of around 70% and comprises more than 10,000 m2 of usable space. Its main tenants include ENGIE Deutschland and Ista. The existing leases were extended during the acquisition process, and as a result of the positive rental market in Frankfurt there is also ‘significant demand’ among other interested parties, said Knight Frank which advised on the transaction on behalf of the seller.
‘The crucial factor for this value-added product was the combination of its location and the clearly evident interest from potential tenants during the process. For this reason, we were able to achieve a very good price for the seller,’ said Denis Olf from the Knight Frank investment team in Frankfurt, which was responsible for the sale.
One of BICC’s key attractions is its direct motorway and tram connection to the A661 motorway, which makes it possible to reach both the airport and the city centre within 10 minutes.
The office market in Frankfurt is booming, with a record amount of over 700,000 m2 of brokered office space recorded last year, according to Knight Frank. At the same time, high-rise buildings are seeing strong demand from project developers, users and investors for both commercial and residential use, with 15 projects currently under construction.