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CapitaLand marked its maiden foray into Germany’s commercial property sector with the €245 million (S$391 million) acquisition of Main Airport Center (MAC), a freehold multi-tenanted office building in Frankfurt.
The acquisition was made via a joint venture, in which CapitaLand holds a 94.9 percent stake, while the remaining 5.1 percent stake is held by Lum Chang Holdings Limited.
Strategically located near the Frankfurt Airport, the freehold office building is currently 84 percent occupied by more than 30 tenants, including Dell, Mastercard and Lufthansa, said Lee Chee Koon, CapitaLand Limited group chief investment officer (designate) and The Ascott Limited CEO.
He revealed that MAC is set to attain an occupancy rate of more than 95 percent by June next year based on leases already secured.
“We will continue exploring the possibility of enhancing the property to further increase MAC’s value proposition for incoming tenants.”
He noted that demand for the commercial real estate in Germany is set to rise considering the country’s positive economic outlook.
Frankfurt’s office market, for instance, is on an upswing as many major multinational firms and Japanese banks plan to set up new offices in Frankfurt.
“The city’s office leasing market remained strong in Q3 2017 with a 24 percent year-on-year increase in take-up of leases. Transaction volume for offices also grew by around 13 percent year-on-year,” he said.
“We see strong potential to step up investments in the commercial real estate in Europe and key cities worldwide, as we expand our serviced residence and mall portfolios.”
This article was edited by Keshia Faculin.
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