German listed property company IVG Immobilien has announced that Lufthansa will take a major tenancy in its office development The Squaire at Frankfurt International Airport.

The German air carrier becomes the third major tenant to sign an occupancy lease at the office and leisure complex, joining KPMG and Hilton. Today’s deal takes the occupancy rate up to 82%.

IVG will focus on small and medium-sized units to fill the remaining lettings.

The EUR 800 mln project provides 140,000 m2 of office and hotel accommodation on top of the ICE high-speed train station at the airport. The Squaire - which is 97% owned by IVG and 3% held by airport operator Fraport - will generate EUR 20 mln in rental income next year that will grow up to EUR 40 to EUR 45 mln in 2013 after expiry of the rent-free period.

On 29 September IVG agreed the restructuring of some EUR 500 mln of debt securitised against the project.

IVG manages assets across Europe with an approximate value of EUR 22 bn.