Following the real estate transaction, Ilmarinen owns half of a building named Pollux. The other co-owner of the property is a global institutional investor with whom Ilmarinen has collaborated previously. The 32-storey landmark property located in the European Business District was built in 1997 and its extensive renovation is nearing completion. The lettable area totals approximately 35,000 square metres, and the main tenant is the insurance company Zurich.
The property will be managed by Schroder Real Estate, with which Ilmarinen has carried out several estate investments in Europe.
“Frankfurt is one of the world’s major financial hubs, and demand for office space has been strong since the financial crisis. The city is expected to further strengthen its position as the financial centre of the European Union, which will maintain upward pressure on rent values also in future,” says Mikko Antila, Ilmarinen’s Head of International Real Estate.
Ilmarinen has previously made investments in one office property in Frankfurt and in three office properties in Berlin.
“Ilmarinen’s investment strategy aims at increasing the international diversification of its real estate portfolio. In addition to Germany, Ilmarinen has real estate investments in Belgium, the Netherlands, the UK, and the U.S., to name a few. Finnish real estate, however, will continue to make up the core of Ilmarinen’s real estate portfolio,” says Antila.