Private equity real estate group Quinlan Private announced today it is acquiring a 50 percent stake in a €60-million ($83 million) office and hotel complex in Frankfurt. The remaining interest in the recently developed project is being retained by German developer FOM Real Estate.
Thomas Dowd, a partner at Quinlan, said in a statement that the Frankfurt property “represents a good opportunity to acquire well-located office space in the recovering Frankfurt office market. As the property is increasingly let, it will return a very attractive yield for our investor group.”
The hotel component is leased to Madrid-based NH Hotels and occupies 12,100 square meters of space. The property’s offices are comprised of 7,286 square meters, more than 40 percent of which is currently leased. Located in the commercial Bleichstrasse district in Frankfurt’s city center, the property is 300 meters away from the ‘Konstabler Wache’ railway station.
FOM Real Estate, headquartered in Heidelberg, will implement the leasing strategy for the joint venture. The firm has opened an office in Frankfurt and is expanding its activities in the city.
Demand for both hotel and office space in Frankfurt has increased considerably in the past 12 months and is expected to remain at a high level, according to a spokesperson at FOM. He added that the financial capital has the highest average rents for office space in Germany and peak rents are higher than those found in Berlin and Munich.