The owners are trying to sell an office complex in Frankfurt amid speculation that Brexit will boost the value of commercial property in the German financial capital.
Norway’s sovereign wealth fund and Axa Investment Managers SA want about 550 million euros ($622 million) for the Die Welle office complex in Frankfurt’s business district, Bloomberg reported.
Prices for nearby office properties have increased to record levels on speculation that Brexit, or the pending exit of the UK from the European Union, will lead professional talent and financial capital to relocate to Frankfurt.
Both the Norwegian fund and Axa declined to comment. They formed a joint venture to buy the Die Welle office complex in 2012. It was the sovereign fund’s first investment in German real estate.
The fund’s $1 trillion in assets now include a $25 million portfolio of real estate around the world, and the fund announced in February that it would pare its property investments. [Bloomberg] – Mike Seemuth