Real IS buys office building in Frankfurt from Hines

Real IS buys office building in Frankfurt from Hines
The Marienbogen office building in Frankfurt am Main

Real I.S. AG has purchased the Marienbogen office building in Frankfurt am Main for its real estate alternative fund (AIF) BGV VIII Europa from Hines European Core Fund (HECF).

The parties have agreed that the transaction price will not be disclosed.

The Marienbogen complex is located on Marienstrasse in Frankfurt’s banking district and has a total leasable area of around 5,906 square meters.

The office building was completed in 1992 and extensively renovated in 2015, during which it was certified with ‘Silver’ by the German Sustainable Building Council (DGNB).

In 2008, Hines, on behalf of its Pan-European Core Fund, acquired Marienbogen, its first asset in the Frankfurt office market.

The main tenant is currently the London-based commercial law firm Bird & Bird LLP. The building has efficient and flexible floor plans, allowing modern approaches to space configuration. This is of particular benefit to tenants with low space requirements.

”Due to the attractive location in Frankfurt’s banking quarter and its modern fit-out, the property is an ideal investment for the BGV VIII Europa fund. Taking into account the prime location and the outstanding feature of small-scale office spaces, we believe in the future viability of this investment and have decided to acquire it for these reasons,” said Axel Schulz, Global Head of Investment at Real I.S. AG.

Real I.S. said the Marienbogen building is the 17th investment for the BGV VIII Europa fund.

”Thus the existing equity capital commitments have been fully invested within a period of slightly more than three years. The investment focus is on Germany and France, as well as the Benelux countries and Spain. The allocation of the fund concentrates on core and core-plus investments. With the Marienbogen the already broadly diversified commercial property portfolio of the BGV VIII Europa fund has been extended further. The targeted annual yield distribution of the investment fund is 3.0 to 3.5 on a ten-year average,” said the company in a press release.

Simone Pozzato, Fund Manager of the Hines European Core Fund, adds: “With the sale of Marienbogen, we are once again demonstrating the strength of our platform. Through active asset management, we have created long-term value.HECF represents a broadly diversified portfolio and is one of the best-performing core real estate funds in Europe across the industry, as well as a pioneer in ESG. Our aim is to maintain and build on these standards.”