UBS Asset Management’s (UBS-AM) Real Estate & Private Markets (REPM) has acquired the Turmcenter office asset in Frankfurt, Germany, for €155 million ($177 million). The property was purchased on behalf of an individually structured mandate from Benson Elliot with the price representing a yield of 3.9 percent.
Turmcenter is a 21-story tower occupying a prominent position in Frankfurt’s central business district. Originally constructed in 1970, the 17,300-square-meter (186,215-square-foot) asset underwent a comprehensive refurbishment that completed in 2016 and offers state-of-the-art design and award-winning environmental credentials such as the LEED Gold certification, while delivering low operating costs. Features include an impressive double-height reception, flexible floor plates throughout and a 400-space car park. The class A property is currently approximately 85 percent let to a diversified tenant roster with a weighted average lease term of 9.3 years.
“The Turmcenter is a high-performing investment that makes an excellent addition to our managed mandates portfolio,” said Mark Gifford, head of transactions EMEA (ex CH), real estate & private markets at UBS Asset Management. “Both the quality of the asset and strength of its location provide it with highly defensive characteristics and clear visibility of income streams — including rental guarantee — that align with the strategy of the individual client mandate. The realized 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.”
