Vienna’s Most Sought After Office Skyscraper Changes Owner
- May 24, 2016
By Bogdan Odagescu, Associate Editor
Vienna—CBRE Global Investors recently closed the acquisition of the 39-story, 700,000-square-foot IZD Tower in Vienna. Working on behalf of Korean separate account clients, CBRE GI acquired the property from a German fund managed by investment management company SIGNA. The seller was advised by CBRE and Eastdil Secured.
The sale of the IZD Tower is the most important Austrian real estate transaction of the last couple of years. Though financial terms have not been disclosed, EuroProperty.com reported last year that SIGNA’s initial asking price was €270 million, or approximately $300 million. When the skyscraper last traded hands, in 2010, the reported amount cashed in by former owner MEREIT was roughly $237 million.
Sitting at 19 Wagramer St., the high-rise is close to the A4 and A22 motorways. Situated within a 20-minute ride from the Vienna International Airport and about five minutes away from the city’s main train station, the property is located within one of Vienna’s prime business locations and within easy reach of a plethora of leisure and sports facilities. The office tower, which is one of the tallest and largest in Austria’s capital, was completed in 2001 and received LEED EBOM Gold Certification in 2002.
IZD Tower’s diverse tenant roster includes Ernst & Young, Oracle, Baxter, Borealis, the U.S. Embassy to the U.N., Eurest, and Colgate Palmolive. The building had an occupancy rate of 94 percent at the time of sale. Together with an adjacent six-story building included in the transaction, the property offers a combined number of 1,254 parking spots.
“Our investors are increasingly looking for global diversification (…). As Vienna is the second largest German-speaking city globally, it continues to be an important business hub with attractive pricing/risk premiums,” said Klaus Kortebein, managing director, global key accounts with CBRE GI, in prepared remarks.
Image via Wikimedia Commons, courtesy of user Hendric Stattmann