Listed Belgian Immobel enters German market with Frankfurt tower

The Belgian Immobel Group has bought the “Eden” residential tower project in the Gallus district of Frankfurt am Main, marking the group’s first entry into the German market.

The high rise with 263 apartments or 20,000 sqm living space was designed by gsp Städtebau, with completion scheduled for 2022. The project is part of the so-called Telenorma site development, which also includes the hotel and office tower “The Spin” being built by Groß&Partner.

The actual deal involves Immobel buying 89.9% of the shares in the company Europa-Allee Wohnen gsp GmbH, but the group declined to provide further financial details.

Immobel’s chairman Marnix Galle commented; “The performance of the German economy in relation to the European situation makes this country naturally attractive in the context of the geographical diversification strategy we have announced. This acquisition demonstrates Immobel Group’s interest in Germany, where we are seeking more projects to create, in the medium term, a development platform similar to those we have deployed in countries in which we operate.”

The demography of Frankfurt is continually growing, driven by the success of its financial position, Immobel said. For more than 15 years, Frankfurt has been attracting large numbers of new residents, particularly professionals in the financial sector with high purchasing power. "At the same time, the creation of an insufficient number of new dwellings has led to a clear imbalance between supply and demand, and even a quasi-structural shortage in the residential market. This phenomenon risks being compounded by Brexit."

Immobel is already present in Belgium, Luxembourg, Poland, Spain and France through a number of diversified real estate programs.

Olivier Bastin, CEO of Immobel Luxembourg, said the profile of the Frankfurt acquisition is entirely consistent with Immobel’s development philosophy as an expert in urban planning, providing bespoke, high added-value urban responses in European cities.

Immobel is one of the oldest companies on the Belgian stock exchange, with its first listing dating back to 1863. Currently with a market cap of over €500m, the firm now focuses on four areas - office, residential, retail and land banking. The firm recently sold the Cedet building in Poland to South Korean funds managed by GLL for €129.5m.