Activum SG, a European real estate investor and manager, acquired an 8,800 m² office building in Frankfurt from WestFonds Immobilien-Anlagegesellschaft mbH, a wholly-owned subsidiary of WestLB AG. WestFonds was advised by Jones Lang LaSalle. The parties agreed not to disclose the transaction volume. It is the second acquisition by Activum SG.
The building known as 'Michelangelo' is located at Gerbermuehlstrasse 7-11 in Sachsenhausen and was completed in 2003.
Saul Goldstein, Managing Partner of Activum SG Capital Management, explains: "This is a well-located, modern office building. It requires an active owner and aggressive marketing plan. We can attract tenants because we will offer excellent space for a rent less than half of that for comparable space in the banking district. In today's economic climate tenants want high quality space and flexibility, yet cannot afford to pay premium rents."
Commenting on the German real estate market, Goldstein continues: "Our focus is to acquire buildings requiring active asset management. Germany is one of the few real estate investment markets offering solid risk-adjusted returns for value-added investments. As a cash buyer in this environment our strategy requires patience and perseverance."
Source: Citigate Dewe Rogerson