TLG Immobilien has acquired two office properties in Frankfurt for a total of €160 mln from an American investor.
The assets comprise the 31,500 m2 Campus Carré in Frankfurt-Niederrad, which cost €85.7 mln. The office generates around €5.5 mln a year in rent and is 99% occupied, with tenants including Hochtief Solutions, Techniker Krankenkasse and Steigenberger.
Olof-Palme-Straße 35 in Frankfurt’s Mertonviertel district is a 26,700 m2 property which is 100% let to Air Liquide, generates €4.3 mln in rent and was acquired for €74.3 mln.
The purchase makes Frankfurt am Main TLG's second most prominent office location, by portfolio weighting, after Berlin.
'For us, this transaction is the strategic start of our move into the rest of Germany,' commented Niclas Karoff, board member of TLG Immobilien. ‘With this acquisition in Frankfurt we are starting off with exceptionally well-positioned properties in each of the micro-markets. From this position we intend to systematically expand our portfolio in the promising Rhine-Main area as well as in other locations in Germany.
'Our business model will not change, meaning that our activities in the future will still be determined by our local proximity to our customers and markets’, added Karoff.
Savills Germany brokered the deal.