Pensions group BVK is investing in one of Frankfurt’s landmark office towers through debt rather than equity.
Bayerische Versorgungskammer has lent €300m, at a 60% loan-to-value ratio, to the three owners of Tower 185. The investment is believed to yield around 3% for BVK investors.[s2If current_user_can(access_s2member_level1)]
BVK made a “long-term real estate loan”, said law firm Norton Rose Fulbright, which advised developer and part-owner, Austrian-listed CA Immobillien.
The loan replaces shorter- term financing from a syndicate put together by Eurohypo, now Hypothekenbank Frankfurt.
CA Immo has agreed to sell two-thirds of Tower 185, which is Germany’s fourth tallest tower, completed last January, to two German pension funds.
BVK financed IVG’s purchase of Frankfurt’s Silberturm in 2011.
German Law firm Noerr advised BVK.