The Shanghai-based conglomerate Fosun Group has made its first property acquisition in Frankfurt with the purchase of an office asset.
The Estrella building was acquired through Fosun’s London-based private equity real estate firm Resolution Property. Resolution Property is Fosun’s European investment and management platform via which the firm is investing in value-add properties in the region.
Fosun declined to comment on the acquisition price but according to several news reports it is around €50 million.
“Estrella is a significant step for Fosun Property’s European investment and management platform, marking the debut of Resolution in mainland Europe and representing a meaningful commitment to the German market. We look forward to similar value-add opportunities in future,” commented Alex Gong, vice president of Fosun Group and chief executive officer of Fosun Property, in a statement.
Spread over 3,261,46 square feet, the Estrella is a six-storey office building located in Frankfurt’s central business district. In a statement announcing the deal, Fosun said Resolution Property aims to refurbish and reposition the building to create a mixed-use property providing office space and social and cultural amenities.
“Following on from our pioneering schemes at Alphabeta, Ampersand and Dept W in London, Estrella has the potential to contribute to Frankfurt’s growing appeal within the creative and start-up industry and the corresponding high demand for innovative and creative office space, which is currently lacking in the City. Works on Estrella are expected to start this year with completion expected at the end of 2018,” added Henning Keil, head of Germany investments at Resolution Property.
Europe remains a priority market for Fosun’s global investment strategy. In July, 2015 the firm, via one of its insurance subsidiaries, acquired the Palazzo Broggi in Milan, a landmark commercial office property that was formerly the headquarters of the UniCredit bank.