DEMIRE Deutsche Mittelstand Real Estate AG has acquired a stake in the prominent office complex CIELO, located at Theodor-Heuss-Allee 100-104 in Frankfurt am Main. RFR Group will also hold an equal stake in the building. The total transaction is valued at over €270m. The asset, which was built in 2003 and extensively refurbished from 2018 to 2020, is leased to the Commerzbank AG on a long-term basis. Cielo comprises around 37,000m² of total space and offers modern technical equipment as well as contemporary space layouts. The location is within walking distance of the Frankfurt Trade Fair and on one of the cities main roads.
"With this transaction, we are consistently continuing DEMIRE's realignment. We expect this transaction to generate an average FFO I contribution of around €5m per annum in the coming years. In addition, we have the option to fully acquire the building complex from our partner RFR in five years on terms already agreed,” comments Ingo Hartlief, Chairman of the Management Board of DEMIRE AG.
Alexander Koblischek, Managing Director of RFR Management, added: “We are pleased to have DEMIRE as a strong partner from the region for this exciting property. After full occupancy and comprehensive refurbishment by RFR, we are now looking forward to the next chapter of Theodor-Heuss-Allee.”