With the signing of the purchase agreement for the office properties Campus Carré in Frankfurt-Niederrad and Olof-Palme-Strasse 35 in Frankfurt’s Mertonviertel, TLG Immobilien AG acquired two high-grade properties in western Germany. With this transaction in Frankfurt am Main, TLG Immobilien AG is expanding its disciplined investment approach to value-creating acquisitions in growth markets in western Germany. The seller is an American investor and the transaction was brokered by Savills. Based on portfolio value as of 30 June 2016, Frankfurt am Main will now be the second-largest office location in the portfolio of TLG Immobilien AG after Berlin.
Located in the office district of Niederrad, Campus Carré (Lyoner Str. 25, 60528 Frankfurt am Main) was completed in 2003 and has a lettable area of around 31,500m² as well as more than 500 parking spaces. Around €85.7m of the purchase price is attributable to this property. The office building has modern fittings and as of today generates a contractual annualised in-place rent of around €5.5m. The weighted average lease term (WALT) of the rental agreements is 4.7 years. With an occupancy rate of 99%, the property is almost fully occupied today. The largest tenants include HOCHTIEF Solutions AG, Techniker Krankenkasse and Steigenberger.
An office property in Mertonviertel (Olof-Palme-Strasse 35, 60439 Frankfurt am Main) was also acquired in the same transaction. The purchase price of this property amounts to €74.3m. The building has a lettable area of 26,700m², was built in 1993 and fully modernised in 2013 and features approx. 450 parking spaces. The office property has an occupancy rate of 100% and an annualised in-place rent of €4.3m per toda, the WALT is 9.5 years. The property is rented by the global industrial concern Air Liquide as part of a long-term agreement.
TLG Immobilien AG has a 25-year history of focusing on the growth regions in Berlin and eastern Germany. Until now, the company has mostly been active in the office markets in Berlin, Dresden, Leipzig and Rostock. Since its IPO in 2014, TLG Immobilien AG has grown steadily by acquiring office, retail and hotel properties in its core regions. This has enabled TLG IMMOBILIEN AG to increase the value of its portfolio by more than €500m to around €2bn since the company´s IPO.
