A joint venture between CapitaLand and Lum Chang Holdings Limited has acquired an office building in Frankfurt, Germany, at an agreed value of 245 million Euros ($291 million).
CapitaLand, a real estate developer, holds a 94.9% stake in the freehold multi-tenanted office building known as Main Airport Center (MAC), while construction company Lum Chang Holdings holds the remaining 5.1% stake, said a statement on Thursday (Dec 28).
MAC, is CapitaLand’s first office building in Germany and is situated strategically close to the Frankfurt Airport, one of the top five busiest airports in Europe.
The building is currently 84% occupied by over 30 tenants, including Dell, Lufthansa and Mastercard, and it is expected to attain an occupancy rate of over 95% by June next year based on the leases already secured.
MAC is also a 20-minute drive to the city’s Central Business District and located near several hotels near the airport
With a new metro station located just 600m away due to be ready in 2019 and a third airport terminal is due to open in 2023, MAC is expected to attract more tenants, said the statement.
Mr Lee Chee Koon, group chief investment officer (designate) of CapitaLand Limited and CEO of The Ascott Limited said: “Demand for commercial real estate is expected to rise given Germany’s positive economic outlook.”
“Frankfurt’s office market is on an upswing as many major multinational companies and Japanese banks are planning to open new offices in Frankfurt… We see strong potential to step up investments in commercial real estate in Europe and key cities worldwide, as we expand our serviced residence and mall portfolio.”