Deka Immobilien GmbH has paid €775 million ($924 million) for the Tower 185 office tower in Frankfurt on behalf of its real estate funds.
The seller was CA Immo.
It was one of the largest transactions in Europe this year, according to JLL Germany, which advised CA Immo on the transaction.
With a total rentable area of about 1.1 million square feet and 552 parking spaces and a book value of approximately €237 million ($283 million), CA Immo is selling its largest single investment.
Located in the Europaviertel district in Frankfurt, Tower 185 was developed and completed in 2011 by CA Immo. The total investment costs came to approximately €480 million ($572 million).
In 2013, around 67 percent of the office tower was sold to WPI Fonds SCS-Fis and to a pension fund company.
The current occupancy rate of Tower 185 is around 90 percent. The largest tenant at the moment is PWC, accounting for more than 60 percent of the rentable area.
During the third quarter 2017, the Frankfurt investment market once again gained considerable momentum, which is reflected in an increase in the transaction volume by around 13 percent year-over-year to more than €3.4 billion ($4.1 billion), according to Colliers International.
The result was mainly driven by high-volume deals for more than €100 million ($119 million), such as the project acquisition of the new DB Netz headquarters by Amundi in proximity to the central railway station, the transaction of the Ernst & Young headquarters in Eschborn, and the sale of the high-rise T8 at Taunusanlage.
Frankfurt continues to be a highly attractive real estate investment location, which is reflected in the high proportion of foreign capital currently flowing into the market. International investors, which have been particularly active in the core-segment this year, account for a market share of roughly 53 percent.
