Irish wealth management company Custom House Capital (CHC) has bought the BICC tower in Frankfurt on behalf of HLB Financial Services for EUR 27.6 mln, including costs. The transaction volume reflects a gross yield of 6.67%.
Irish wealth management company Custom House Capital (CHC) has bought the BICC tower in Frankfurt on behalf of HLB Financial Services for EUR 27.6 mln, including costs. The transaction volume reflects a gross yield of 6.67%.
The 10,300 m2 property, located 6km east of Frankfurt city centre, comprises three interconnecting buildings - a 15-floor main office building, a second 4-storey office building and a 4-storey car park with 294 spaces. The asset is earmarked for Frankfurt BICC Property Fund established for clients of HLB Financial Services.
The major tenants in the property include O2, E-Plus, and Emerson. The property is currently 92% let with a two-year rental guarantee on vacant space. On full letting it will generate a total annual rental income of EUR 1.6 mln, which corresponds to an average of EUR 160 per m2 per annum.
Harry Cassidy, chief executive of CHC, said that the purchase price was based off a base rent on the vacant space so that any leases signed in the future in excess of this base level benefits the investor.
CHC was advised by global property consultants Knight Frank.
