IVG raises €200m for club deal

The German-based company said it raised more than €200m ‘within a short space of time’ from institutional investors in order to buy the Silver Tower building in Frankfurt from Commerzbank.

IVG Immobilien, the Germany based real estate investment company, has raised more than €200 million in a club-like structure to buy the Silver Tower in Frankfurt.

Institutional investors put up more than 90 percent of the ‘fund’ equity for the purchase of the property, otherwise known as the building complex of Jürgen-Ponto-Platz 1 and the building immediately adjacent, Gallusanlage 8 from Commerzbank.

It said details were being kept under wraps because of a confidentiality agreement with Commerzbank, but IVG revealed that financing was provided by a major German pension scheme for a period of 10 years.
The landmark 36-storey Silver Tower, is located in the middle of Frankfurt’s banking district, and has been undergoing extensive modernisation since 2009. The 72,000 square metre complex is leased to Deutsche Bahn AG on a long-term basis. The modernisation of the building formerly used as a headquarters by Dresdner Bank is almost complete.

“We are delighted that our compelling bid to acquire the Silver Tower has been accepted. Thanks to our excellent relationships with our investors and our extensive transaction expertise, we made use of a structured process to successfully raise over €200 million in equity for this outstanding investment within a short space of time”, said Wolfgang Schäfers, chief executive of IVG Immobilien.
The transaction is part of the investment platform strategy defined by IVG in 2010. According to this strategy, the company selectively acts as co-investor in institutional investment products from the property and infrastructure segments. Successful prior placements include the IVG Cavern Fund, the IVG Protect Fund and the IVG Premium Green Fund.