Aareal Bank has provided a €129 million loan to finance Tristan Capital Partners’ recent acquisition of the Garden Tower building in Frankfurt’s banking district.
Tristan bought the 27,513 square metre Garden Tower last month through its core-plus Curzon Capital Partners IV fund for €175 million. The building was sold by a fund managed by JP Morgan Asset Management.
Aareal’s five-year loan is understood to comprise senior debt at a loan-to-value ratio of slightly less than 70 percent, with an additional cap-ex element. The senior loan is understood to be priced at just above 160 basis points.
The multi-let Garden Tower consists of two towers, one with 15 floors and the second with 27, plus five basement levels. The high-rise building complex was refurbished between 2003 and 2005.
“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, at Aareal Bank.
Garden Tower was originally constructed between 1973 and 1976 as the headquarters of Helaba, and was one of the first high-rise buildings in Frankfurt’s financial district, the Bankenviertel. Helaba vacated the building in 1999. Société Générale has its German headquarters in the building and investment advisory company Deutsche Vermögensberatung is the second largest tenant.
The management team of Cornerstone Real Estate Advisers co-invested alongside Curzon Capital Partners IV and will advise on asset management.
Funds advised by Tristan Capital Partners agreed €1.6 billion of asset financings this year, including deals with pending completions. In addition the firm has agreed €600 million of refinancing and other credit facilities, plus approximately €1 billion of revolving credit facilities.