Madison International Realty has announced that it has sold its stake in Frankfurt’s Trianon Office Tower in a €540 million (£377 million) deal with New York based NorthStar Realty.
Madison acquired a stake in the landmark skyscraper (pictured centre), which it owned along with Morgan Stanley Eurozone Office Fund, in 2012. Subsequently extensive improvements have been carried out to reposition the Trianon on the market, accompanied by the slogan ‘rebirth of an icon’.
“At the time of purchase we were certain that, with the right partners and the right business plan, we would be able to increase the value of this prestigious building in the financial district of Frankfurt. The successful sale confirms that our strategy was well chosen.” said Ronald M. Dickerman, founder and president of Madison International.
The entrance of the 610 ft 47-storey tower has been modernised and now features a ten metre high illuminated arch. The distinctive upside-down pyramid sitting on top of the tower has also been illuminated, making it a feature of Frankfurt’s night-time skyline, and is lit in different colours to mark holidays and special occasions. In addition the lobby has been redesigned and the elevators have been refurbished.
These improvements, together with the Trianon’s LEED Gold Certification for sustainability, have helped asset manager Bilfinger Real Estate Argoneo increase the occupancy rate from 85 per cent, when Madison acquired its stake in the property, to 98.5 per cent today.
In 2014 the German Central Bank took 15,000 sq metres (161,000 sq ft), making it one of the largest individual deals in the Frankfurt office market, although Dekabank remains the Trianon’s main tenant.
“Signing a major contract with the German Central Bank, in a challenging market environment, confirms our marketing strategy and makes the Trianon one of the most prestigious addresses in the financial district,” said Michael Siefert, Managing Director of Madison’s German office.
BNP Paribas and CBRE advised the owners during the sale process.
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