Patrizia refinances Frankfurt’s Commerzbank Tower: 55% LTV

Patrizia has secured “significant” refinancing of Commerzbank Tower in Frankfurt on behalf of its client Samsung SRA Asset Management,  based on an LTV of 55%, the German group said yesterday. 

The refinancing from the consortium of banks arranged by BayernLB ensures a basis for further ESG investments into the building, Patrizia said.

“Commerzbank Tower is undoubtedly one of the most iconic assets in Europe’s financial sector and this new loan agreement with key banking partners shows there is still appetite to finance sustainable office assets in Europe’s prime locations,” said Philipp Schaper, CEO European Real Estate, Patrizia.

BayernLB said that the transaction was successfully closed because of “a very professional and structured cooperation between the involved long-standing and reliable partner banks, pbb, LBBW and UniCredit together,” with Patrizia acting as the asset manager.

“Securing the refinancing of such a landmark asset is a major milestone, considering the continued challenging economic environment we are operating in,” said Schaper. “Safeguarding client investments through solid financing in today’s tough market has never been more critical as we head into a new property cycle where value creation will be driven by hands-on quality asset management.” 

As the global HQ of Commerzbank, Germany’s fourth largest bank by assets, Commerzbank Tower benefits from a long lease with an exceptionally strong anchor tenant. Commerzbank leases 100% of available office space within the landmark 259-metre tower, with the ground floor featuring a public galleria with mixed retail and hospitality tenants. 

With a net zero target by 2040, Commerzbank has a clear sustainability strategy that creates strong alignment of interests with the decarbonisation pathway for the building.

Designed by architect, Foster + Partners, Commerzbank Tower was awarded the Green Building Frankfurt Award in 2009. It has used 100% renewable energy since 2008 and is LEED Gold certified, while the building actively promotes biodiversity with nine internal sky gardens, recycles rainwater for its sanitary facilities and is cleaned exclusively with biodegradable materials. It is also equipped with smart building technology that optimises heating, ventilation and air conditioning (HVAC), as well as lighting usage.

Situated in the heart of Frankfurt, Commerzbank Tower is regarded as one of the most iconic buildings in the city’s globally renowned banking district. Frankfurt is a top 10 European city for cross-border investment interest, according to research from CBRE, while Oxford Economics predicts that its GDP and employment growth will outpace Germany as a whole between 2023 and 2027.