IGIS Asset Management, an asset-management and investment company, together with its German subsidiary IGIS Real Estate (IGIS International), has signed a purchase agreement for Madison International Realty's interest in the Frankfurt Trianon complex.
The property is substantially leased.
The 47-floor office tower at Mainzer Landstrasse in Frankfurt's banking district rises to a height of 186 meters and, together with the adjacent residential buildings, encompasses approximately 69,000 square meters of rental space, including 566 parking spaces, some of which are open to the public.
The office tower is predominantly leased to financial services firms, including anchor tenant DekaBank on a long-term lease.
The skyscraper, completed in 1993 and featuring a roof in the form of an upside-down pyramid, is considered one of the most prominent landmark buildings on the Frankfurt skyline.
LSM Management, a Hong Kong- and Dubai-based advisory firm, exclusively advised and negotiated the transaction. Prominent law firm King & Spalding acted on behalf of Madison International Realty.
Prior to the current transaction, the Trianon complex was previously owned by Morgan Stanley European Fund, which was created for an institutional real estate investor specializing in joint ventures.
In its focus on acquiring direct secondary equity interests, IGIS will be supported by its newly formed European subsidiary.
In its focus on acquiring secondary equity capital in real estate, Madison's investment strategy is heavily quality-driven, with investments focused on core properties. The USD 820 million portfolio of equity capital participations, now complemented by the prestigious Frankfurt property, does not include any opportunistic investments.
"IGIS was an ideal buyer for our early divestment of its indirect real estate investments. Due to the current turmoil in the real estate and financial markets, we needed liquidity as demand for new transactions remained strong. Structural changes, such as those currently experienced by open-end real estate funds, present particularly interesting investment opportunities for Madison."— Michael Siefert, Managing Director at Madison in Germany
IGIS Asset Management has raised more than USD 1.1 billion of equity since it was founded in 2006, said CEO Robert Yoon. With offices already in Seoul and New York, the firm has become one of the largest acquirers of interests in European real estate ventures.