Warburg-HIH Invest Real Estate is acquiring two office buildings in Frankfurt’s European Quarter from property developer Aurelis Real Estate. The buildings, which are located next to each other and in the immediate vicinity of the fairgrounds and close to the central railway station, are currently under construction. Both assets are let for 20 years to Deutsche Bahn AG. It was agreed not to disclose the purchase price.
The forward deal includes the new-build office buildings DB Brick and DB Tower, which total 53,778m², with the former comprising 23,400m², and the later offering 23,400m². In addition, the two properties will also have 374 underground parking spots. Both assets were marketed by JLL Frankfurt.
The property development is the largest structural engineering project by Aurelis at the moment. Last October, the real estate company signed a long-term lease with Deutsche Bahn AG for the two properties on Europa-Allee. Around 3,000 Deutsche Bahn employees of various business units will move into their new premises in late 2020.
“The transaction reaffirms our strategy to secure particularly attractive property developments in an early stage,” said Hans-Joachim Lehmann, Managing Director at Warburg-HIH Invest. “The long lease term, the blue-chip credit worthiness of the incoming tenant and the strategically important location in Europe’s second largest place of finance will make it possible to generate stable long-term cash flows.”
“The construction work is right on schedule,” elaborated Joachim Wieland, CEO of Aurelis. “We already started excavating the construction pit for the 60-metre DB Tower high-rise. For the DB Brick building, the shell-and-core work will start soon.”