CAPITALAND Integrated Commercial Trust (CICT) and CapitaLand Investment (CLI) have secured the European Central Bank (ECB) as an anchor tenant for their jointly owned office building in Frankfurt.
CLI and the manager of the trust, CapitaLand Integrated Commercial Trust Management, announced on Tuesday (Mar 12) the 10-year tenancy from the ECB at the Gallileo, a 38-storey Grade A office building located in Frankfurt banking district.
The central bank of the euro area will occupy over 90 per cent of the building’s total net lettable area of more than 41,000 square metres and the building’s committed occupancy is expected to exceed 95 per cent when the City of Frankfurt signs a lease for the basement space.
CapitaLand will hand over the leased area to the ECB in phases beginning from the second half of 2025 when the building upgrading works are completed.
CapitaLand has started upgrading works at Gallileo. The project, costing around 180-million-euro (S$262 million), is taking place in three phases with a primary focus on fulfilling the tenant’s building requirements.
CLI holds a 5.1 per cent interest in Gallileo while CICT owns the remaining majority stake. The ECB is expected to become one of the trust’s top 10 tenants.
Shares of CLI closed S$0.04 or 1.5 per cent higher at S$2.71 and CICT units were up S$0.01 or 0.5 per cent at S$1.96 on Tuesday, before the announcement.
