June 27 (Bloomberg) -- Deutsche Bank AG and ECE Projektmanagement GmbH, Germany’s largest shopping-center operator, are in talks to buy the Palais Quartier complex in Frankfurt for more than 800 million euros ($1.1 billion) from Rabobank Groep, according to two people with direct knowledge of the matter.
Deutsche Bank, in a joint bid with ECE, plans to buy the commercial property for investment funds managed by its Deutsche Asset & Wealth Management unit, said the people, who asked not to be identified because the information is private. Spokesmen for Deutsche Bank, ECE and Rabobank declined to comment.
Investors are buying German commercial properties to benefit from steady rental returns in Europe’s largest economy, amid scarce investing opportunities in other fixed income markets as interest rates remain low. German offices, shops and warehouses valued at 10 billion euros changed hands in the first quarter, 40 percent more than a year earlier, according to data compiled by Jones Lang LaSalle Inc.
The Palais Quartier property has about 1.4 million square feet (130,000 square meters) of shops, offices and hotel rooms, including the MyZeil shopping mall and the Hotel Jumeirah.
The news was reported by Debtwire earlier this week.
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