HanseMerkur Grundvermögen AG has acquired F.A.Z. Tower, the new headquarters for the Frankfurter Allgemeine Zeitung (F.A.Z.), an office project currently under construction in Frankfurt am Main, for one of its investment vehicles from UBM Development.
UBM said the purchase price amounts to €196 million.The F.A.Z. Tower will be realised by UBM Development (75%) together with the PAULUS Immobiliengruppe (25%) and is scheduled for completion in 2022.
The F.A.Z Tower was fully rented to Frankfurter Allgemeine Zeitung at the start of construction. The offices cover 18 stories on 27,300 m² of above-ground gross floor space. The Europaviertel includes excellent infrastructure and is located directly next to the Frankfurt Trade Fair.
The new F.A.Z. headquarters will rise to a height of over 60 metres. The office tower in Frankfurt consists of two slim cubes which turn against their own axis in the form of a double “H”.
“The F.A.Z. Tower proves that the demand for first-class office buildings in major European cities is unbroken despite the pandemic“, commented Thomas G. Winkler, CEO of UBM Development AG, on the sale. ”In the current challenging market environment, the risk appetite of investors is declining – their focus has shifted more to prime locations and partners with top credit standings. This project offers the perfect mix from an investor’s viewpoint: a well-known developer with strong financials and a long-standing track record and a 15-year lease with a top quality tenant at an excellent location,”he added.
Lutz Wiemer, Deputy CEO of HanseMerkur Grundvermögen AG: “The last few months, in particular, have shown the importance of personal presence, spontaneous communications and direct contacts in a team. We are therefore convinced: Modern office buildings at established, very good locations are, and will remain, a good investment. The F.A.Z. headquarters is therefore an excellent match for our investment strategy in many respects.“