US firm Goodwin Procter is planning to scale back its German operations by ‘winding down’ its German real estate practice and shutting its Frankfurt office later this year, the second US firm in the past month to announce retrenchment plans in the city.

A Goodwin spokesperson said: “Our firm has made the difficult decision to wind down our German real estate practice, and as a result we are closing our Frankfurt office this autumn. We remain focused on serving the German market through our growing practices serving the private equity, venture capital and funds industries practice in Munich and our real estate clients globally.

“We are grateful for the partnership of our German real estate clients and affected colleagues and are committed to supporting them through this transition.”

The move will leave Goodwin with just one German office, in Munich. It first opened in Frankfurt in 2016 and moved into an expanded office space in 2017. The office was originally launched by lawyers Stephan Kock, Peter Junghänel, Marc Bohne and Lars Jessen, who joined as partners from Ashurst. It then opened in Munich in 2022 as part of a plan to grow its private equity offering in the country.

The firm has 25 legal professionals based in Frankfurt, including nine partners, according to its website. Founding Frankfurt partners Bohne (currently Frankfurt office chair), Kock and Junghänel are still at the firm, while Jessen left in 2021 to join Paul Hastings before hopping across to DLA Piper a year later.

Goodwin’s decision to shut in Frankfurt follows news last month that Cleary Gottlieb Steen & Hamilton will shut its 34-year-old Frankfurt office in November. Cleary said it was folding its Frankfurt team into its Cologne office.

The exit of both Goodwin and Cleary from Frankfurt follows a period of expansion from other international firms in the country. Since the start of last year, Kirkland & Ellis opened in Frankfurt; DLA Piper opened a fifth German office, this time in Dusseldorf; and Willkie Farr & Gallagher and Greenberg Traurig both opened in Munich.

However, German media reported in February that Pinsent Masons was planning to cut its German headcount.