NorthStar Realty Europe Corp. has sold Trianon, a 45-storey skyscraper in the heart of Frankfurt’s CBD district, to IGIS and Hana Financial Investment, a South Korean consortium, for c. €670m. Completion is expected before year-end 2018 and is subject to customary conditions. Cushman & Wakefield has advised on the transaction. Constructed in 1993, the 68,000m² skyscraper has a distinctive delta shape, topped by a polygonal diamond which, on special occasions, is transformed into a coloured illumination. Located at Mainzer Landstrasse, in the centre of Frankfurt’s banking district, it is the sixth-highest tower in Frankfurt at 186m and comprises 61,304m² of high specification office space, in addition to 4,345m² of ancillary space and 2,788m² residential space.
Since acquiring the asset in July 2015, NorthStar Realty Europe Corp. has completed numerous value enhancing initiatives including leasing 7 vacant floors, signing a 10-year lease with Deutsche Bundesbank, and obtaining a LEED Platinum certification following an extensive refurbishment program. The building is currently fully let and benefits from a long average weighted unexpired lease term, in excess of 6.5 years to expiry, with some of Germany’s strongest covenants including DekaBank, Deutsche Bundesbank, and Franklin Templeton.
Richard Tucker, Head of Capital Markets Frankfurt at Cushman & Wakefield, said: “With its distinctive architecture and unique footprint, Trianon is an icon of the Frankfurt skyline. Trianon is perfectly positioned to not only benefit from the projected out-performance of Frankfurt rental growth, but also from the city’s appeal as a leading global financial centre.”
Argie Taylor, Head of APAC Cross Border Capital Markets at Cushman & Wakefield, said: “The sale follows a comprehensive global marketing campaign, which saw the building generating significant interest from a broad spectrum of investors in Europe, China, Hong Kong, Singapore and South Korea. Our unique insight into the Korean market helped us to secure a high-quality buyer for the asset.”
Jan-Willem Bastijn, Head of EMEA Capital Markets at Cushman & Wakefield, said: “As a landmark deal for the Frankfurt market, the sale of Trianon marks a significant achievement for Cushman & Wakefield’s capital markets team at both a local and global level. It is a great example of leveraging our global capital markets platform in tandem with the market-leading expertise in our German capital markets team to deliver the best result for our client on this truly international project.”
