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UBS AM sells Merton's Mitte in Frankfurt

After the sale of the Frankfurt Airport Center 1 (FAC 1) in the third quarter of 2017 [we reported], UBS (D) Euroinvest has disposed another of its non-strategic assets in the Northwest of the Main metropolis. The office building named Merton's Mitte is obviously acquired by Conren Land. While the transaction has already been confirmed, by USB AM no official statement regarding the buyer as well as the purchase price has been made so far. The last published book value (11/2017) was at €19 million. According to market information however, the sales price for the B-location property, affected by high vacancy rate, have been at almost €23 million.

The office building on Lurgiallee 10-12, completed in 1994, provides a total rental area of around 16.500 sqm as well as 331 car parking spaces. In November the occupancy rate of the building ensemble, which is currently under refurbishment, was at 38.9%. This provides at least scope for active asset management measures. The weighted average lease term (WALT) is at almost 3 years, under the condition no new lease agreements have been signed since November.

With the sale the fund management has now already successfully disposed the second of its non-strategic assets in the Mertonviertel. Only in October, the closing of the neighbouring Merton's Passage on Lurgiallee 6-8, sold to GxP German Properties AG [we reported] has been published. The property, built in 1994, providing a surface of 8.500 sqm and 153 car parking spaces last had a book value of €5.7 million has been sold with a vacany rate of about 37% and a weighted average lease term (WALT) of 1.6 years. According to USB Asset Management the revenues of the recent sales will be reinvested into the core markets of the fund.