Samsung SRA Asset Management, the investment subsidiary of South Korean insurance giant Samsung Life Insurance, is to acquire the Commerzbank Tower in Frankfurt.
The investor is to become the new owner of Germany’s tallest building next year after the building is acquired through an individual mandate with Augsburg, Germany-based real estate investment manager Patrizia Immobilien.
The deal value was not disclosed but has been reported to be as much as €800 million. The deal is expected to close next summer.
The property is being sold by Commerzbank who will remain as the building’s anchor tenant. The property was owned by two closed-end funds of Commerzbank’s subsidiary Commerz Real. Counting its antenna, the skyscraper reaches 300 meters tall and has 65 stories, 45 of which are office space. The gross floor space is approximately 1.3 million square feet.
“In pursuing their global investment strategies, major institutional investors are increasingly leveraging strategic partners that have the know-how needed on the ground across a variety of real estate markets,” commented Wolfgang Egger, chief executive of Patrizia. “We can offer real estate solutions on a pan-European level from our network of expert teams.”
This deal is not the first Patrizia has conducted on behalf of an Asian investor. According to Konrad Finkenzeller, head of institutional clients international, in the last 15 months the firm has invested around €1.3 billion in real estate for Asian investors throughout Europe.
“Clients from Asia appreciate our specialist real estate knowledge and our fully integrated investment management capability,” he said.