Frankfurt office JV to start now €200m debt package in place

[Image © ABG Real Estate Group]

Joint venture partners ABG Real Estate Group and HanseMerkur Grundvermögen have secured a €200 million construction finance package for their Central Parx development in Frankfurt – formerly known as the BHF Tower.

Lead arranger DZ Hyp and a consortium of cooperative banks are providing the loan, which is one of the largest agreed in the German property market so far this year.

The facility will enable the renovation project, which has an investment volume of €370 million, to proceed. The property at Bockenheimer Landstraße 10 has leasable areas of about 23,500 sq m in three building sections adjacent to Rothschildpark. Completion is scheduled for late 2027. The building permit has been applied work is expected to start in late autumn 2024.

The property was constructed in 1965 to plans by architect Sep Ruf, one of the significant and influential architects of post-war Germany, and was occupied by BHF for more than 50 years until its departure in 2023.

Law firm Noerr and the ABG Real Estate Group itself are to occupy almost half of the refurbished space.

“The successful securing of financing marks a crucial step towards realising Central Parx – a project that will profoundly shape the skyline of Frankfurt, much like the BHF Tower did in the past,” ABG Real Estate Group managing partner Ulrich Höller said:. “Together with HanseMerkur Grundvermögen, we are transforming this historic structure into a forward-thinking and sustainable work environment.”