Tikehau Capital and Dunman Capital Partners acquire Frankfurt office

Global investment firm Tikehau Capital and Frankfurt-based real estate specialist Dunman Capital Partners have acquired an office building located on Querstraße in central Frankfurt. 

Frankfurt

They plan to renovate and convert the 8,000 m2 property, built in 1990, into a serviced apartment complex with approximately 172 units catering to both extended stays and hotel guests. 
The building, sold by a Luxembourg fund managed by IC Immobilien Gruppe, will be refurbished over the next two years as existing leases expire. 
This eco-conscious project, Tikehau Capital's third German investment from its second value-add real estate fund, is financed by an SFDR Article 9 fund, emphasizing sustainability and energy efficiency. 
The redevelopment prioritizes sustainability and ESG principles, aiming to significantly improve the building's energy performance and extend its lifespan.
Steffen Meinshausen, head of Real Estate Germany at Tikehau Capital, said: “With this investment, we are sending a clear signal for sustainable urban development and future-oriented living concepts in German cities. This project reflects our ambition to revitalise existing buildings in a way that enhances energy performance, supports mixed-use living and aligns with our broader Article 9 investment strategy.”
Henning Zimmermann, partner at Dunman Capital Partners, added: “We are delighted to be working with Tikehau Capital on this pioneering project. Together, we will modernise the property to a high standard and create a product that will contribute to Frankfurt's long-term sustainable development.”
Dunman Capital Partners, experienced in urban property revitalization, will manage the local project.
Bhp Bögner Hensel & Partner and McDermott Will & Emery provided legal counsel to Tikehau Capital and Dunman on the acquisition, with Colliers International conducting commercial due diligence. Blackolive acted as the exclusive advisor and broker for the seller, who received legal advice from Clifford Chance. 777 Financial Advisors advised the buyer on the financing of the deal.
Edmond de Rothschild's Real Estate Debt team, via its pan-European High Yield I fund, provided Tikehau Capital and Dunman with a senior secured loan to finance the purchase and redevelopment of the property.