Allianz Real Estate has purchased an office development in Munich.

The German insurer said it bought the Kap West scheme from Frankfurt-based developer OFB for an undisclosed amount.

The 42,000sqm scheme, in the Hirschgarten district, is due for completion in 2019

“The investment follows our strategy to expand the office portfolio of Allianz in metropolitan areas with high economic growth and to also regarding structured transactions with developers,” said Annette Kröger, CEO of Allianz Real Estate Germany.

As well as office space, the development will also include retail space, restaurants and a fitness centre.

Allianz said the Munich office market is currently being shaped by strong dynamics, with high demand and low vacancy.