CA Immo sells shares in Tower 185 in Frankfurt
•Deka acquires the office high-rise developed by CA Immo in Frankfurt at a purchase price of € 775 million; CA Immo's share in the property is approximately one third
•Sale in ideal German market environment is significantly above book value
•Net inflow of cash worth approx. € 150 million creates liquidity for further dynamic implementation of current project pipeline
Vienna, 29.11.2017. CA Immo, together with its joint venture partners, today has signed the contract for selling the Tower 185 office tower to Deka Immobilien GmbH. The transaction volume of the property, in which CA Immo holds around one third, amounts to € 775 million. Following repayment of loan financing, this transaction will create a net cash inflow for CA Immo of around € 150 million; the sale price was clearly above book value.
Located in the Europaviertel district in Frankfurt, Tower 185 was developed and completed in 2011 by CA Immo alone; total investment costs came to approx. € 480 million. In 2013, around 67% of the office tower were sold to WPI Fonds SCS-Fis and to a pension fund company. The current occupancy rate of Tower 185 is around 90%; the largest tenant at the moment is PWC (accounting for more than 60% of the rentable area). With a total rentable area of about 102,000 sqm and 552 parking spaces and a book value of approx. € 237 million (CA Immo share), CA Immo is selling its largest single investment.
Frank Nickel, CEO of CA Immo: "This sale allows us to benefit from the currently ideal framework conditions in the German transaction market and, at the same time, reduce minority shareholdings in our portfolio in line with our strategy. Due to its strong fundamentals and perspective, Germany stays most important core market and strong growth segment of CA Immo. Liquid funds that are released in the process will be reinvested in our well stocked project pipeline – including the development of the ONE office and hotel high-rise building with a planned investment volume of approx. € 330 million. Construction of ONE was started several months ago in the immediate vicinity of Tower 185 and the Messe Frankfurt trade fair."
The transaction will be closed subject to standard conditions precedent and is expected to take place early in the first quarter of 2018. For the seller, JLL acted as broker for joint marketing of the transaction, legal advice was provided by Clifford Chance; PwC and KPMG acted as tax advisors for the transaction.
CA Immo in Germany
As at 30 September 2017 CA Immo in Germany has held an asset portfolio worth approximately € 1.3 billion which, at an occupancy rate of 96%, has been almost completely rented out. Moreover, the group has a development volume of around € 1 billion (based on total investment costs) under construction in Germany and, in addition, holds land reserves of € 247 million. Management and project development activities are run by CA Immo's branch offices in Munich, Frankfurt, and Berlin. Since 2008, CA Immo has completed in-house project developments in Germany covering a volume of around € 1.8 billion - for the largest part centrally located state-of-the-art office properties in Berlin, Munich and Frankfurt.