Allianz Real Estate, the property investment arm of the German insurer, has acquired a Vienna office development for a figure understood to be more than €500 million.
The Icon Vienna complex, which offers around 900,000 square feet of prime office space, includes three separate towers and is due for completion in the second quarter of 2018. Allianz is set to take ownership of the development in late 2018.
The complex is located in the Wiedner Gurtel district of the Austrian capital and is near the city’s central train station.
The seller was Signa, Austria’s largest privately-owned property company.
Allianz Real Estate said the Icon Vienna was acquired on behalf of a number of Allianz companies including Allianz Lebensversicherungs and Austrian Allianz Elementar Versicherungs.
The firm said Vienna was “in great demand as an office location” and added that interest from prospective tenants for floor space was already high.
“Following its completion, the Icon will become an architectural landmark,” said Annette Kröger, chief executive office of Allianz Real Estate Germany. “In addition to the inner city area, the market for offices located near the central station is the new office hotspot in Vienna.”
Allianz Real Estate did not disclose its expected yield or return on the deal but in an exclusive interview with PERE in November last year, chief executive François Trausch said the firm was aiming to grow its real estate assets under management by around 25 percent, to €60 billion, by 2020 – adding that its annual rate of return target was between four to six percent.
For the Icon Vienna transaction, Allianz was advised by CMS, EHL and Galleon Capital.