Property developer CapitaLand on Thursday said it acquired an office building known as Main Airport Center (MAC) in Frankfurt, Germany for 245 million euros (S$392 million) through a joint venture.
This is CapitaLand's first office building in Germany as the company tries to expand its commercial business beyond Asia.
As per the deal, CapitaLand holds a 94.9 percent stake in the joint venture while Lum Chang Holdings, an unrelated third party, holds the remaining stake.
"The acquisition of MAC leverages the group's 15 years of experience in Germany and will add to CapitaLand group's network of commercial buildings in Asia," Lim Ming Yan, President & Group CEO of CapitaLand said in a statement.
"Besides key Asian markets such as Singapore, China, Japan and Vietnam, we also see significant investment opportunities in key gateway cities in Europe, Australia and the U.S."
The freehold office building is currently 84 percent occupied, with companies such as Dell and Mastercard having their German headquarters there. Lufthansa has also headquartered its customer loyalty operations in the building.
MAC is expected to attain an occupancy rate of over 95 percent by June 2018 based on the leases already secured for next year, the company said.
MAC is located close to the Frankfurt Airport and a 20-minute drive to Frankfurt's Central Business District.
MAC is also expected to attract more tenants as the district becomes more vibrant when a new metro station just 600 metres away is ready in 2019, and a third airport terminal opens come 2023, CapitaLand said in a statement.
Shares in CapitaLand were unchanged at S$3.51 on the Singapore Exchange.