Madison International Realty has purchased a 56.95 percent stake in an office tower in Frankfurt from Morgan Stanley.
According to the New York-based investment firm, Madison International Realty, together with its German subsidiary Madison Real Estate, has signed an agreement to purchase the interest in the Trianon complex held by Morgan Stanley’s P2 Value fund, an open-ended property fund for German investors. Although Madison International declined to disclose the price, sources familiar with the situation have revealed that the firm acquired the stake for €92 million.
Not too far from Deutsche Bank’s headquarters, the 47-storey, 69,000-square-metre office tower at Mainzer Landstrasse in Frankfurt’s banking district is 85 percent leased, predominantly to financial services firms. DekaBank is the anchor tenant and has a long-term lease.
Madison International acquired the stake through a joint venture with Cologne-based Art-Invest Real Estate. Prior to the current transaction, the Trianon complex was owned by Morgan Stanley on behalf of two open-ended real estate funds, the Morgan Stanley Eurozone Office Fund (MSEOF) and Morgan Stanley P2 Value. The office fund will continue to be a minority owner.
“Madison is the ideal partner for investors looking for an early divestment of their indirect real estate investments,” said Michael Siefert, managing director at Madison’s German subsidiary, in a statement. “Due to the current turmoil in real estate and financial markets, we anticipate the need for liquidity to remain strong.”
Completed in 1993 and featuring a roof in the form of an upside-down pyramid, the Trianon is considered one of the most prominent landmark buildings on the Frankfurt skyline. It currently is undergoing Leadership in Energy and Environmental Design (LEED) certification, and a comprehensive renovation of the property’s lobby has been planned.
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