Clifford Chance advised Godewind Immobilien AG (Godewind) and ERWE Immobilien AG (ERWE) on their respective acquisitions of 89.9% and 10.1% of the Frankfurt Airport Center (FAC) office complex under a share deal for around EUR 168 million. The property is being sold by Peakside Capital and Madison International Realty. The transaction is due to be completed by the end of the year.
Located on a property subject to a heritable building right directly by Terminal 1 at Frankfurt Airport, the office complex with around 48,140 square meters of rental space has prime connections to high-speed and local train services, road networks and 182 parking spaces. Lessees include various airlines and a range of service-sector companies. The contractually agreed net base rent amounts to EUR 10.14 million p.a., which corresponds to a gross initial yield of 5.5% (after deduction of ground rent). The average remaining term of the lease agreements (WALT) is around 6.2 years.
FAC offers significant potential for growth to Godewind and ERWE. With an approximate current vacancy rate of 18%, the property shows significant potential for value appreciation and is therefore a good fit for the corporate strategy of Godewind. ERWE will also continue its commitment regarding the ongoing refurbishment and repositioning programme for the FAC.
Godewind Immobilien AG, based in Frankfurt, is a commercial real estate company specialising in German mixed portfolios. The company focuses on developing an attractive real estate portfolio consisting primarily of office properties.
Clifford Chance has previously advised Godewind regularly on capital market matters, including its initial public offering in spring 2018 with a team led by partners Christian Vogel and George Hacket. The present deal is the first time the firm has provided real estate advice. A Clifford Chance team led by Real Estate partner Gerold Jäger also advised the sellers Peakside Capital and Madison International Realty on the previous acquisition of the property in September 2017.
The Clifford Chance team for Godewind and ERWE for the current acquisition of the FAC comprised partner Gerold Jäger, associates Philip Heinzel, Jonathan Klein (all Dusseldorf) and Marisol Peláez-Romero (Frankfurt, all Real Estate), partner Christian Vogel (Corporate/Capital Markets, Dusseldorf), partner Olaf Mertgen (Frankfurt), counsel Dominik Thomer, associate Philipp Weiten and transaction lawyer Philipp Schulze (all Dusseldorf, all Tax). The team at the Luxembourg office comprised partner Katia Gauzès, senior associate Frédérique Davister, associate Alexandra Dear (all Corporate) and partner François-Xavier Dujardin, counsel Maxime Budzin and associate Katharina Thielges (all Tax).
