Publity Sells St. Martin's Tower in Frankfurt to Barings
Oct 08, 2019
Publity AG, an investor and asset manager focused on office real estate in Germany, has agreed to the sale of St. Martin's Tower (the “Property”) located in Frankfurt. The property is being purchased in a joint venture between Barings, one of the world's largest real estate investment managers, on behalf of institutional investors and the listed Coreo AG, for a pan-European core investment strategy. The transaction is expected to close in 2019. Through this deal, Publity is realizing the second profitable sale of a property from its own portfolio.
Publity acquired the St. Martin Tower with a lettable area of approximately 26,000 square meters in April 2019, through its subsidiary Publity Investor Gmb. The office complex is almost fully let with high-rent tenants and is in a prominent location in the West of Frankfurt. The property consists of two interconnected buildings, the 18-story Tower and the 7-story Wing. The property also has 397 car parking spaces.
Thomas Olek, CEO of Publity, commented: "The sale of St. Martin Tower underpins our well-functioning and strong network and shows that we are able to conveniently acquire properties and leverage on the market at a lucrative rate with a flexible transaction approach. The fact that we sell the property to such a well-known investor as Barings also speaks for the quality of the property and our know-how in the choice of location. The transaction is another milestone in our successful development and we will use the proceeds from the sale for new real estate acquisitions."
Christoph Wittkop, Managing Director and Country Head Germany – Barings, adds: "We are very pleased that we were able to acquire this first class property in the West of the City through an off-market transaction from Publity. It perfectly complements the existing European portfolio of our investor. We have identified further upside potential in the property as well as in the location, which we intend to realize over the next years.”
Marin Marinov, CEO of Coreo AG, said: "By joining with such a significant real estate investor as Barings, we are pleased to be able to acquire and jointly develop this prominent property in Frankfurt. This type of joint investment into buildings like this diversifies our direct investment strategy in a professional way.”
Publity was advised on the sale of the property by Simmons & Simmons LLP. Barings was legally advised by Ashurst and Linklaters. Nai apollo from Frankfurt acted as agent for the transaction. Coreo AG was legally advised by KUCERA.
Publity AG ("Publity") is an asset manager and investor specializing in real estate in Germany, covering the core of the value chain from acquisition to development to real estate development, with more than 1,100 transactions over the past years. For seven years, Publity has been one of the most active players in the real estate market. Publity has a strong network in the real estate sector as well as at the work-out departments of financial institutions. With very good access to investment funds, Publity handles transactions with a high-efficiency process and with conspecific partners. In some cases, Publity participates as a co-investor in joint venture transactions and acquires real estate for its own portfolio. The shares of Publity AG (ISIN DE0006972508) are traded in the Borsenseqment Scale of Deutsche Borse.
Coreo AG, based in Frankfurt am Main, is a real estate company focused on German commercial and residential real estate. Investments are made in real estate with significant potential for value appreciation if there is a need for development, preferably in middle-class centers. The aim is to build an efficiently managed, high-yield real estate portfolio in the volume of €400-500 million within 4-5 years through prudent development and sale of non-strategic properties.
Barings is a $335+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more at www.Barings.com.
*As of September 30, 2019
Barings Real Estate
Barings Real Estate offers a broad range of global investment opportunities across the public and private debt and equity real estate investment markets. We invest in all major property sectors and offer a broad range of financing solutions to real estate borrowers. We also specialize in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.
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