UBS Asset Management’s Real Estate & Private Markets (REPM) business has purchased a mixed-use property in Frankfurt’s central business district for around €27 mln.
The ‘Schiller27’ office-let asset, a seven-storey V-shaped property, was purchased on behalf of the UBS (I) Zurich Italy - Real Estate Fund (UBS-ZIREF) from a special real estate fund managed by DIC Asset.
Dating from 1997, the property totals 3,000 m2, including around 350 m2 of ground floor retail space, and is fully let, with major tenants including German financial institutions ODDO Seydler Bank and Landesbank Baden-Württemberg (LBBW).
The pan-European UBS-ZIREF fund is managed by UBS-AM and reserved to Zurich Investments Life SpA, a fully owned subsidiary of Zurich Insurance Group.
Peter Haltenberger, member of the managing board for real estate in Germany, commented: ‘Schiller27 is a high performing investment that offers attractive growth prospects, making it an excellent addition to the UBS-ZIREF portfolio.
‘Both the quality of the asset and the strength of its location provide it with highly defensive characteristics and clear visibility of income streams that align perfectly with the Fund’s goal of generating strong and stable returns over the long-term for our client. We consider this to be an ideal opportunity to provide the Fund with exposure to one of Europe’s top five office markets, as Frankfurt continues to draw a growing list of international corporate occupiers amid undersupply of prime stock.’
UBS-AM was advised on the acquisition by DLA Piper