VIENNA, 20 May 2016 – CBRE Global Investors has acquired the IZD Tower in Vienna on behalf of Korean separate account clients in the largest deal seen in Austria for two years. The seller was a German fund managed by Austrian investment manager SIGNA.
The 39-storey IZD Tower with an adjacent six-storey building has a high occupancy rate of 94% including international companies and government agencies with a weighted average unexpired lease term (WAULT) of over 10 years. The building features the largest floor sizes available in high rise buildings in Vienna at up to 1,688 sqm, which also helps attract and retain tenants. Additionally, the tenants benefit from combined 1,254 parking spaces which provide an exceptional competitive advantage.
The 65,000 sqm building is located in the dominant office district of Donau City in Vienna. It is one of the main business locations in Vienna, and is a district that draws international occupiers as it houses the United Nations European Campus, which plays host to several government agencies. The district is well located, with nearby access to the A22 and public transport offers fast connections to local and national transport infrastructure
Katarina Horvathova, Transaction Manager, CBRE Global Investors, said: “IZD Tower is one of the most sought after high-rise landmark buildings in Vienna and attracts high profile local companies as well as global players that seek representative offices for their local operations or headquarters. Well located and accessible to Donau city, it offers flexible high quality offices with many amenities for the tenants to utilize.”
Klaus Kortebein, Managing Director, Global Key Accounts, CBRE Global Investors. “Our investors are increasingly looking for global diversification. We offer expertise in target investment markets as well as client service in the home-country, providing seamless cross-border solutions. As Vienna is the second largest German-speaking city globally, it continues to be an important business hub with attractive pricing/risk premiums. IZD Tower offers our clients an exceptional core property investment with a stable and well-diversified income source.”
Christoph Stadlhuber, SIGNA, CEO commented: “We have managed to maintain IZD Tower’s status as a Grade A trophy asset through continuous and state-of-the-art asset management since acquisition in 2010. The landmark building benefits from an exceptional level of tenant retention and has repeatedly attracted high profile occupiers. With CBRE Global Investors we have been able to achieve a great outcome for the sale of the IZD Tower. From the outset, the buyer was aware that the IZD Tower is a unique, well situated office building with excellent infrastructure.”
The seller was advised by CBRE and Eastdil Secured.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $89.7 billion in assets under management* as of March 31, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
With total real estate assets of more than EUR 6 billion and revenue of over EUR 3 billion from its retail interests, SIGNA has grown to become one of Europe’s leading real estate specialists since it was set up 16 years ago. The Group comprises two core businesses,
SIGNA Real Estate owns and operates a broad long-term portfolio of exceptional properties, and is regarded as an expert partner in fund management and real estate services. The business has a total of around 150 employees spread across four separate companies: SIGNA Development Selection, SIGNA Funds, property services provider SIGNA Real Estate Management, as well as SIGNA Prime Selection, which focuses on long-term buy-and-hold investments in properties in prime European city centre locations.
SIGNA Retail comprises a number of independent German retail companies, including The KaDeWe Group, Karstadt Sports, outfitter.de, Karstadt Warenhaus GmbH and Eataly Distribution Deutschland GmbH. All five businesses are run by a team of seasoned department store and retail experts. These five companies have a total of over 20,000 staff at more than 100 locations, and combined annual revenue of around EUR 3 billion, making SIGNA Retail one of Germany’s largest retailers. Visit www.signa.at for more information.