A strategic partnership led by Schroder Real Estate and funded by Ilmarinen Mutual Pension Insurance Company alongside another international institution, has completed the purchase of Pollux (Platz der Einheit 2), a 32 story office tower in Frankfurt. The sales price is estimated to be €230 million ($266 million).
The seller is Blackstone Group subsidiary Officefirst.
“Schroder Real Estate is committed to long-term strategic partnerships and we are delighted to continue with this latest acquisition along with our close investors,” said Duncan Owen, global head of real estate at Schroder Real Estate. “Pollux is a high quality building in a well-connected, neighbourhood which attracts occupiers from multiple alternative uses. The investment is consistent with our strategy of acquiring assets with strong fundamentals in Winning Cities that are benefitting from structural changes. We expect strong levels of income growth in this market.”
Pollux is centrally located in the European business district, surrounded by the Central Station area, Banking District, Westend and Europaviertel. The building is adjacent to Festhalle/Messe U-Bahn station, Messe trade fair and Skyline Plaza, a major shopping mall with 180 shops and restaurants. The local area has been transformed over the last two decades with multiple attractive leisure and residential, as well as office developments, and has become one of the most desirable locations in Frankfurt.
The class A building was originally built in 1997 and has recently undergone a comprehensive refurbishment, with approximately 35,000 square meters (377,000 square feet) of rental floor area 95 percent occupied by prestigious tenants such as Zurich Insurance, Hauckschuchardt, Fintech Community, Aon and Lavazza.
The existing rents in the building are significantly lower than prime rents of Frankfurt, where there is forecast to be strong rental growth, partially due to financial service firms planning to expand offices in the city.
“The investment supports Ilmarinen’s strategy to improve the geographical diversification of its real estate portfolio,” said Mikko Antila, head of international real estate at Ilmarinen. “Pollux meets our investment criteria well due its central location, high quality building specifications and long and secure income profile. We take a positive view on the continued strength of the Frankfurt office market, and the see the city establishing itself as the financial centre of the European Union.”
