Hana Fin buys Germany’s office complex from Blackstone for $1.1 bn

  • 2019-12-05

Hana Financial Investment Co. Ltd. closed on the 1.3 trillion won ($1.1 billion) purchase of Germany’s largest office complex in Frankfurt from the Blackstone Group on Nov. 30, continuing its buying spree in Europe’s commercial real estate market.

For the acquisition, it teamed up with London-based AGC Equity Partners and anted up 270 billion won each in equity investment, according to sources with knowledge of the matter on Dec. 4. The remainder of the cost was borrowed from banks.

It was first reported by Korean news outlet MoneyToday on Dec. 3 and confirmed by the sources.

To finance the acquisition, Hana Financial launched a domestic fund with a five-year term, together with its affiliate Hana Alternative Investment Management Co. Ltd. and Seoul-based DS Networks Asset Management Co. on Nov. 20.

The brokerage company is planning to sell down part of the equity investment to pension and retirement savings funds via the vehicle which targets a 7.8% return on average.

The Hana-led group was named as the preferred buyer for the nine-story office complex in September.

With total rental space of 140,000 square meters, the complex is directly connected to Terminal 1 of Frankfurt Airport through a pedestrian bridge. It was built on top of the existing long-distance train station in 2011.

Tenants include consulting firm KPMG, German carrier Lufthansa, French tire maker Michelin and Porsche Consulting.

The property is part of the 3.3 billion-euro portfolio of German office buildings which Blackstone acquired in 2016.

By Hyun-il Lee

hiuneal@hankyung.com

<Edited by Yeonhee Kim>

(Photo: Getty Images Bank)