United Benefits Holding has acquired City Tower Vienna for more than €150 million in what is the largest Austria office deal this year.
The landmark property with 26,600 square meters of usable space in Justizzentrum Wien Mitte is being bought for EURO REAL ESTATE from IMMOFINANZ.
City Tower Vienna leased to the Republic of Austria
The tower has 24 upper and 4 underground floors and 100 underground parking spaces. It is leased to the Republic of Austria and houses the judiciary center in Wien Mitte.
EURO REAL ESTATE is a member company of the Wilhelm von Finck Group. United Benefits Holding realised the acquisition through an individual mandate and will now support the asset management. The brokerage was EHL Investment Consulting
This 87 meter complex comprises a high-rise tower with a rotated head structure and two partially elevated side buildings, each 28 meters high.
It is located at a central site on the Marxergasse, near the Wien Mitte railway station, one of the most important inner city traffic hubs with stations for the U3 and U4 underground lines, the rapid transit railway, long-distance trains, the CAT and numerous tram and bus lines. Vienna International Airport can be reached in 16 minutes, and the Main Railway Station and West Railway Station in 10 minutes.
Iconic property
Michael Klement, CEO of United Benefits Holding, says, “The City Tower Vienna is an iconic property that has become a landmark on Vienna’s skyline. The success of our efforts in identifying and realising an investment opportunity of this size in the current difficult market phase underscores the confidence of institutional investors in our company. The tower is a landmark property, which we plan to develop with a top tenant into a green asset over the coming years. From the deal sourcing to transaction management and active asset management, this project is further proof of concept for our integrated service portfolio.”
Ralf Peter, Managing Director of EURO REAL ESTATE, says, “The acquisition of the City Tower Vienna by EURO REAL ESTATE underscores our commitment to sustainable and stable value investments in first-class properties. We are proud to work with United Benefits Holding as our transaction manager, whose expertise and extensive service offering enabled the successful conclusion of this complex transaction. This acquisition demonstrates our confidence in the Vienna market and our strategy to invest in trophy assets that create long-term value for the Wilhelm von Finck Group.”
Attractive price
Radka Doehring, a Member of the IMMOFINANZ Executive Board, says, “The successful sale of the City Tower Vienna shows that we are making very good progress with our strategic sales programme. We were able to sell this landmark property at an attractive price around book value. The sale price of over 150 million Euros is the largest transaction to date this year on the Vienna office market and, in times where the investment market is characterised by noticeable restraint on the part of buyers, it demonstrates the outstanding quality of our properties and the high real estate expertise of our team. In line with our strategy, we plan to invest the proceeds in higher yielding retail and office properties to create additional value.”
Franz Pöltl, Managing Partner of EHL Investment Consulting, says, “We are very proud to have brokered this trophy property to a sustainability-oriented investor in these challenging times. The long contract term with the Republic as an optimal tenant at one of the most attractive locations in Vienna is the basis for this transaction.
“Investors with strong equity resources are beginning to stretch out their feelers in the absolute top segment and anticipate the expected recovery of the investment market.”
United Benefits Holding and its subsidiaries were responsible for the deal sourcing, structuring and financing of the transaction as well as the due diligence and contract negotiations. Professional support was provided by Schönherr Rechtsanwälte (legal); TPA Unternehmensberatung (tax), United Climate (ESG check) and Salzmann Capital (financing).
United Benefits Holding
United Benefits Holding is an independent real estate service provider with an integrated approach. Together with its subsidiaries it initiates, develops, realises and manages real estate investments in the DACH region and offers a full range of services and processes along the entire value chain for real estate investments. In line with the company’s clear ESG strategy, independence, transparency and social justice as well as CO2 reduction and the sustainable creation of value represent the focal points for all investments. The group employs roughly 90 employees and manages a volume of approximately €2 billion.
IMMOFINANZ
IMMOFINANZ is a commercial real estate group whose activities are focused on the office and retail segments of eight core markets in Europe: Austria, Germany, Poland, Czech Republic, Slovakia, Hungary, Romania and also the Adriatic region. The group holds roughly 500 properties with a combined value of approximately €8.2 billion.
EHL Immobilien
EHL Immobilien is one of Austria’s leading real estate service providers and is specialised in commercial, investment and also residential properties.
The image is from Wikimedia by Pezi and is reproduced under CreativeCommons.
