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Frankfurt's landmark Trianon Tower has been put up for sale, signalling growing pressure on Germany's commercial property sector, which continues to reel under the weight of falling valuations and rising financing costs. The 45-storey tower, formerly housing DWS Group's headquarters, is being offloaded by a fund managed by South Korea's IGIS Asset Management. The decision comes as German office property values decline, with foreign investors adjusting their exposure. Trianon's sale reflects broader restructuring trends among Asian asset managers holding European real estate portfolios.
Frankfurt's Trianon Tower, one of the city's tallest skyscrapers and a symbol of its financial landscape, has officially been listed for sale by a fund operated by South Korea's IGIS Asset Management. The 45-storey office tower spans approximately 68,000 square metres and previously served as the headquarters of asset manager DWS Group. The move comes amid a protracted crisis in Germany's office market, where valuation declines and low occupancy rates continue to undermine investor confidence. Advertisement
According to sources familiar with the process, the property is being marketed by BNP Paribas Real Estate and CBRE Group. The tower, located in Frankfurt's central business district, is expected to attract investor attention despite a subdued market climate, though insiders anticipate a sale price that may fall short of its book value.
IGIS, South Korea's largest real estate asset manager, had acquired the Trianon Tower in 2018 in partnership with Hana Financial Investment Co. Ltd. for approximately EUR 670 million. At the time, the transaction had marked a significant step in the growing trend of South Korean institutional investments in European commercial real estate. However, the post-pandemic market environment has brought about sharp corrections in asset prices, prompting several foreign investors to reassess their holdings in Europe.
The tower is currently around 50 percent vacant, with the former tenant DWS Group having relocated its headquarters to another address in Frankfurt. Efforts to lease the empty space have proven difficult in a market where demand for traditional office setups has dropped due to hybrid work models and cost-sensitive tenants. Property values in Germany's commercial sector have witnessed a steep decline, with some major cities registering over 30 percent value erosion from pre-pandemic peaks.
The sale of the Trianon Tower also aligns with a broader trend observed among Asian asset managers who are rebalancing their real estate portfolios by shedding overseas assets to stabilise returns. Other high-profile office properties in cities like Berlin and Munich have also entered the market recently, underscoring a widespread recalibration of real estate strategy in the face of tightening monetary policies and cautious investor sentiment.
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