UBS AM acquires Frankfurt office tower for €155m

UBS Asset Management's Real Estate & Private Markets (REPM) business has acquired the Turmcenter office asset in Frankfurt for €155 mln from Benson Elliot.

According to UBS, the price represents a yield of 3.9%. The vendor said the sale delivered an equity multiple of 3.5x to Benson Elliot investors.

'The Turmcenter is a high performing investment that makes an excellent addition to our managed mandates portfolio,' said Mark Gifford, head of transactions EMEA, real estate & private markets at UBS Asset Management.

'The realised share-deal structure allowed us to secure a high quality, modern and sustainable investment at a very attractive pricing level. We consider this to be optimum timing to gain such a substantial holding in the Frankfurt office market, as it continues to draw a growing list of international corporate occupiers amid undersupply of prime stock,' Gifford added.

Turmcenter is a 21-storey tower in Frankfurt’s central business district comprising 17,300 m2.

Originally constructed in 1970, Benson Elliot acquired the property in 2013 and undertook a full refurbishment that completed in 2016. It is now distinguished by Leed Gold certification.

The asset is approximately 85% let to a diversified tenant mix with a weighted average lease term of 9.3 years.

'This marks another successful transaction for Benson Elliot in Germany and is illustrative of what we do best,' said Joseph De Leo, senior partner at Benson Elliot. 'We implemented a hands-on value enhancement strategy, brought the asset down the risk curve and delivered it back into the core market.'

UBS was advised on its acquisition by Hogan Lovells.

Benson Elliot was advised by CBRE and Freshfields Bruckhaus Deringer.


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