Largest Real Estate Transaction in Germany in 2017: RFR Holding Sells Extraordinary Real Estate Portfolio to SIGNA Prime

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Nov 10, 2017, 14:00 ET

FRANKFURT, Germany and VIENNA, November 10, 2017 /PRNewswire/ --

The portfolio comprises five Trophy Assets: Highrise "Upper West" in Berlin, the High Street assets "Kaufmannshaus" and "Alsterarkaden" in Hamburg, development "Upper Zeil" in Frankfurt as well as the 50% RFR shareholding of the project "Karstadt at Munich Main Train Station"
Largest real estate deal in Germany in 2017 with a volume of c. EUR 1.5 Bn in the most sought after locations of the 4 largest German cities Berlin, Hamburg, Frankfurt and Munich
The long-term portfolio of SIGNA Prime is further diversified through the acquisition in terms of rental income, usage mix and long-term leases

SIGNA Prime Selection AG has recently acquired an extraordinary portfolio, comprised of five Trophy Assets in absolute prime locations in Berlin, Hamburg, Frankfurt and Munich from RFR Holding GmbH. With an absolute transaction volume of c. EUR 1.5 Bn, the transaction is the largest real estate deal in Germany in the year 2017. This extraordinary portfolio of assets comprises five Trophy Assets: Highrise "Upper West" in Berlin, the High Street assets "Kaufmannshaus" and "Alsterarkaden" in Hamburg, development "Upper Zeil" in Frankfurt as well as the 50% RFR shareholding of the project "Karstadt at Munich Main Train Station". The other 50% of the project is already owned by SIGNA Prime.

In summary this portfolio of high street assets comprises c. 160,000 m² of lettable area, spread over c. 70,000 m² retail, c. 55,000 m² office, c. 17.000 m² Hotel, c. 1,000 m² gastronomy as well as c. 17.000 m² other areas. The assets all have long-term secured and creditworthy tenants as well as a diversified usage mix with additional value-add potential. The close to fully let portfolio will, as is customary for SIGNA Prime, be held for the long-term, and will ensure the continued diversification of the portfolio in terms of rental income, usage mix and long-term leases.

The acquired assets are:

The newly built Upper West in Berlin, which with a height of 119 meters is one of the tallest buildings in Berlin, and will be used as an office, hotel and retail location. Thanks to its attractive architecture from Christof Langhof, the building has a high recognition value and occupies a special place in the booming City West. The Upper West is showing itself to be a landmark asset in the absolute prime location of Berlin next to the Gedächtniskirche. The new build is comprised of a tower with 34 floors as well as a podium with 8 floors, and was completed in September 2017. The c. 53,000 m² lettable commercial area are essentially fully let. Main tenants are Motel One, Görtz Lawyers, WeWork and Görtz Shoes.

The Alsterarkaden, at the Jungfernstieg in Hamburg, which is based on the historical designs of Alexis de Chateauneuf for the Hamburg Rathausmarkt, is seen with its corner location to the shopping street "Neuer Wall" as the entry gate to the Hamburg luxury mile. The Alsterarkaden offer office tenants a beautiful view over the Binnenalster and the Rathausmarkt. The retail tenants profit from the tourists which walk along the Jungfernstieg and the Neuer Wall. Tenants include Wempe, Swatch, Douglas, and many more.

The in 1905 constructed, and in 2013 revitalised Kaufmannshaus presents itself in Hamburg with the historical exterior of a Kontorhaus, in the middle of the traditional shopping square of Hamburg (Große Bleichen), and offers high quality retail and office space to tenants. The Kaufmannshaus not only offers excellent gastronomy, but also retail with Marc Cain, Suitsupply, Guess, etc. which invite you to shop. The central location has attracted office tenants like Rent24, shipping company Offen, Norton Rose Fulbright, FCB and Yelp to sign up as tenants.

The commercial building Upper Zeil is being developed in Germany's shopping street with the highest frequency, between Galeria Kaufhof and MyZeil. The impressive glass façade of the building will spread over 45 meters and offer views into and onto the Frankfurt Zeil from all floors. The Upper Zeil is currently still in development, and will prospectively be completed end of 2018. This chance to place themselves at the hot spot of Frankfurt is being used by labels such as Benetton, Reserved, and Vodafone.

The asset Karstadt at the Munich Main Train Station offers unparalleled development potential direct in the heart of Munich, at the Munich Main Train Station. Here, SIGNA Prime will take over the remaining 50% shareholding from RFR. In a central location in Munich, between the Main Train Station and Stachus, the most important shopping street of Munich, will be created. The Schützenstraße will become a prolongation of the Neuhauser Straße, one of the most significant shopping streets in Germany. With the planned renovation of the main train station as well as the extension of the S-Bahn line, the Schützenstraße will only become even more important.

"The acquisition of this unique portfolio allows us to continue to build out the market position of SIGNA Prime as one of the leading European real estate companies, and to position itself as one of the largest European real estate companies," Timo Herzberg, Executive at SIGNA Prime Selection AG.

"A transaction like this requires a lot of trust between the involved parties. We have had good, constructive and trusting discussions with SIGNA Prime from the start. That is why we are particularly happy to sell these extraordinary assets to one of the most successful real estate companies in Europe," Michael Fuchs, Founder RFR Group.

About RFR

The RFR Holding GmbH (RFR) belongs to the RFR Group of the German-born real estate investors Michael Fuchs and Aby Rosen. Over the last 25 years RFR has built a unique real estate portfolio. Classic architecture history such as the Seagram Building in New York from Mies van der Rohe, or the famous Lever House from Skidmore, Owings & Merrill are complemented by modern office and commercial buildings, hotels, and luxury residential in prime locations. Today the RFR Group manages real estate in the USA and Germany of over EUR 12 Bn. The RFR Management GmbH based in Frankfurt/Main is responsible for the property and asset management of the real estate portfolio of the RFR Group, with a total area of c. 700.000 m² in Germany. Additional information is on http://www.rfr.com.

About SIGNA

The by the Austrian entrepreneur René Benko founded SIGNA Group is a private entrepreneurially active industry holding in the industries of real estate and retail. The company, with a real estate gross asset value of over EUR 10 Bn, and an additional development volume of EUR 5 Bn, is one of the most important real estate investors in Europe and operates with over 20,000 employees and over EUR 3.8 Bn revenue well known retail companies in Germany. The Group comprises two central industry areas: SIGNA Real Estate and SIGNA Retail.

SIGNA Prime Selection AG, which is part of the SIGNA Real Estate group, has since its founding in 2010 developed itself into one of the largest real estate companies in Europe. SIGNA Prime owns, amongst others, real estate icons such as the KaDeWe in Berlin, the Alsterhaus in Hamburg, the Oberpollinger and the Alte Akademie in Munich, as well as the Park Hyatt and the Goldenes Quartier in Vienna. For years, the company has used the successful strategy, to build a portfolio of exceptional real estate in prime city locations in Germany, Austria, and Northern Italy, and to continue to acquire or develop targeted prime assets. SIGNA Prime counts to the largest real estate owners in cities like Berlin, Munich, Hamburg, and Vienna, and follows the goal to own its real estate over generations. Additional info can be found at http://www.signa.at