Aareal Bank has financed Tristan Capital Partners and Cornerstone Real Estate Advisers’ €175m acquisition of the Garden Tower, a high-rise office building in Frankfurt, with a five-year €129m facility.
CoStar News understands that the senior facility is around 67% to 68% LTV, implying a loan size of between €117m and €119m, which was priced at around 160 to 170 basis points over three-month Euribor.
In addition, Aareal Bank has provided a capex facility of between €10m and €12m.
Tristan, the majority investor in the joint venture acquisition, acquired its stake through the Curzon Capital Partners IV fund which it manages.
Garden Tower is a 126-metre building located in Frankfurt’s banking district consisting of two towers, one with 15 floors and the second with 27, plus five basement levels.
The office tower serves as Société Générale’s headquarters in Germany and the bank occupies the 11th to 16th floors, while investment advisory company Deutsche Vermögensberatung is the second largest tenant.
“We are delighted that we were able to provide a customised financing solution for this landmark building in Frankfurt’s city centre, to such a renowned business partner”, said Ronald Hoffmann, managing director Germany, Aareal Bank.
The high-rise building complex was thoroughly refurbished, and fitted with a glass front, between 2003 and 2005. The Garden Tower was awarded a ‘very good’ BREEAM sustainability rating in 2006.
Ali Otmar, managing director of Investments at Tristan Capital Partners, said: “With increasing office take-up, declining vacancy rates and rising rents, acquiring a well-let and unbeatably located building, allows CCP IV to position itself on the pathway to growth expected for the German office market.”
CCP IV was advised by Clifford Chance, CBRE, Savills and RKS Ingenieure. Cornerstone Real Estate Advisers was chosen to advise on asset management and other repositioning activities.