Real estate asset manager AEW has bought an office building in Frankfurt for an undisclosed price, as it seeks to profit from a real estate market that has “benefitted from the aftermath of Brexit”.
The seven-storey Baseler Palais property comprises of 5,300 sqm of rentable space and is currently only at half occupancy, but AEW expects to fill it due to strong demand.
Tobias Schnurer, director of investment at AEW, said: “With extremely low vacancy across the city’s office stock and strong occupier demand, rents are continuing to grow and we expect this investment to be well placed to capitalise on this trend.”
The property is AEW’s first acquisition in Frankfurt and Schnurer said the city is “one of Germany’s strongest office markets and a major financial centre, which has benefitted from the aftermath of Brexit”.
The purchase, made on behalf of the AEW Europe Value Investors II fund, offers asset management and refurbishment potential in the medium term including to lease up vacant space across the building, according to the fund manager.
The main tenant is peace research institute Leibniz-Institut Hessische Stiftung Friedens-und Konfliktforschung.
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