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Samsung consortium to buy Commerzbank head office in Frankfurt

Aug 12, 2016 (Gmt+09:00)

commerzbankSamsung Securities and Samsung SRA Asset Management will acquire Commerzbank Tower, the headquarters of Commerzbank and the landmark of Frankfurt, at the price of 900 billion won. According
to investment banking industry sources on August 11, the consortium of Samsung SRA Asset Management, a real estate asset management firm, has been selected as a preferred bidder in a bidding to take over the building ownership.

Even though Government of Singapore Investment Corp. and Korea Investment & Securities had been considered strongest candidates, the Samsung SRA Asset Management consortium outbid both firms by offering most attractive terms. After Samsung Securities and Korea Investment emerged as strong contenders, Commerz Real, the entity responsible for selling the building, visited Seoul in July to review the way the bidders procure funds.

The funds to acquire Commerzbank Tower will be partly financed by the 500-billion-won real estate fund created last year by Samsung SRA together with other Samsung Group companies such as Samsung Securities, Samsung Life, and Samsung Fire. The remaining balance will be procured by recruiting domestic institutional investors by October this year.

With the height of 259 meters, the 56-story Commerzbank Tower is the tallest building in Germany. Before Triumph Palace was built in Moscow in 2003, it was the tallest structure in the whole European continent. Currently Commerzbank uses the building as its head office.

By Suji Nah

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