IGIS acquires Frankfurt’s Trianon office tower (DE/US)

Source: FTI Consulting

IGIS ASSET MANAGENT, an asset management and investment company, together with its German subsidiary IGIS Real Estate (IGIS International), has signed a purchase agreement for Madison International Realty’s interest in the Frankfurt Trianon complex.

The property is 95% leased.

The 47-floor office tower at Mainzer Landstrasse in Frankfurt’s banking district rises to a height of 186 meters and, together with the adjacent residential buildings, encompasses about 69,000 m² of rental space, including 566 parking spaces, some of them open to the public.

The property is 85% leased, predominantly to financial services firms, including the anchor tenant DekaBank on a long-term lease.

The skyscraper, completed in 1993 and featuring a roof in the form of an upside down pyramid, is considered one of the most prominent landmark buildings on the Frankfurt skyline.

LSM Management, a Hong Kong and Dubai based advisory firm exclusively advised and negotiated the transaction. Prominent law firm, King and Spalding acted on behalf of Madison International Realty.

Prior to the current transaction the Trianon complex was previously owned by Morgan Stanley European Fund which was created for an institutional real estate investor specializing in joint ventures.

In its focus of acquiring direct secondary equity interests, IGIS will be supported by its newly formed European Subsidiary.

In its focus on acquiring secondary equity capital in real estate, Madison’s investment strategy is heavily quality-driven with investments focusing on core properties. The US $820 million portfolio of equity capital participations, which will now be complemented by the prestigious Frankfurt property, does not include any opportunistic investments.

“IGIS was an ideal buyer for our early divestment of their indirect real estate investments,” explains Michael Siefert, Managing Director at Madison in Germany.

“Due to the current turmoil in the real estate and financial markets we needed liquidity as demand for new transactions remain strong. Structural changes, such as those currently experienced by open-end real estate funds, present particulatrly offer interesting investment opportunities to Madison.”

IGIS Asset Management has raised over US $1.1 billion of equity since it was founded in 2006 said CEO Robert Yoon. With offices already in Seoul and New York the firm has become one of the largest acquirers of interests in real estate ventures in European.