CBRE Global Investors has acquired the IZD Tower in Vienna on behalf of Korean separate account clients in the largest deal seen in Austria for two years. The seller was a German fund managed by Austrian investment manager SIGNA.
The 39-storey IZD Tower with an adjacent six-storey building has a high occupancy rate of 94 percent including international companies and government agencies with a weighted average unexpired lease term (WAULT) of over 10 years. The building features the largest floor sizes available in high rise buildings in Vienna at up to 1,688 sqm, which also helps attract and retain tenants. Additionally, the tenants benefit from combined 1,254 parking spaces which provides an exceptional competitive advantage.
The 65,000 sqm building is located in the dominant office district of Donau City in Vienna. It is one of the main business locations in Vienna, and is a district that draws international occupiers as it houses the United Nations European Campus, which plays host to several government agencies. The district is well located, with nearby access to the A22 and public transport offers fast connections to local and national transport infrastructure
Katarina Horvathova, Transaction Manager CEE, CBRE Global Investors, said: “As the second biggest German-speaking city globally, Vienna continues to be an important business hub offering an attractive pricing/risk premium. IZD Tower offers our client a high-quality stabilised core investment in one of the most attractive locations for international cities.”
Klaus Kortebein, Managing Director, Global Key Accounts, CBRE Global Investors, said: “We have the expertise and global footprint to be able to service a growing roster of clients looking at global allocations. We can offer access to a larger number of strategic markets in which to make core acquisitions and benefit from a greater level of diversification. We at CBRE Global Investors have exactly the expertise they are looking for.”
SIGNA CEO Christoph Stadlhuber, commented: “We have managed to maintain IZD Tower’s status as a Grade A trophy asset through continuous and state-of-the-art asset management since acquisition in 2010. The landmark building benefits from an exceptional level of tenant retention and has repeatedly attracted high profile occupiers. With CBRE Global Investors we have been able to achieve a great outcome for the sale of the IZD Tower. From the outset, the buyer was aware that the IZD Tower is a unique, well situated office building with excellent infrastructure.”