IVG has acquired the ‘Zeil 94’ retail property in Frankfurt city center for two specialized real estate funds of institutional investors. The core property with rental space of almost 7,800 m² was built in 1989 and underwent extensive modernization in 2012 and 2013.
The property is situated in one of Germany's busiest shopping locations and is fully let to the Irish clothing chain PRIMARK on a long-term basis. The parties involved have agreed not to disclose the purchase price. The vendor has been represented by CR Investment Management as asset manager. The acquisition is the fifth club deal that IVG has made in the last 18 months.
In this kind of transaction, a small circle of institutional investors acquires properties the purchase of which, given the volume, would be impossible or very difficult for each investor individually. IVG performs fund and asset management for these club deals and has selectively participated as a co-investor. IVG has already invested a total of over €1 billion for institutional investors in the context of these club deals.
Furthermore, with this acquisition, IVG is continuing the strategic expansion of its range of investments to other asset classes, in addition to office and logistics, including retail. In February, IVG successfully acquired the Prime Portfolio, a high proportion of which is retail. Overall, IVG manages retail properties for IVG funds throughout Europe with a volume of approximately €1.6 billion.