SITQ has just completed the purchase of two buildings of IBC, a Class A office complex built in 2003-2004 and located in the City West zone of Frankfurt. The transaction totalled more than CAD$300 million.

The floor area of the two buildings is nearly 500,000 square feet. The major tenants are Deutsche Bank (320,000 square feet) and Degussa Bank, a subsidiary of ING (70,000 square feet).

“This is our first investment in Germany, emphasizes Yvon Tessier, Senior Vice President, Investments, SITQ. The Frankfurt market is currently at the low point of its cycle due to a broad-based restructuring of its banking sector, and we feel it offers excellent potential for growth. Beyond that, the quality of the tenants and the long-term leases allow us to look at the future with a lot of confidence.”

The world’s fourth-largest financial centre after London, New York and Tokyo, Frankfurt is home to the European Central Bank, the head offices of 240 German and foreign banks and the largest of Germany’s stock exchanges. A city of about two million, including the surrounding suburban area, Frankfurt is Germany’s fifth in size in terms of population.

“This transaction confirms SITQ’s desire to acquire an even more solid base in the European markets, explains Paul Campbell, President and CEO of SITQ. That being said, the company will be looking for other major investments in Europe and North America in the coming years.”