Invesco Real Estate has bought a 20,600sqm Munich office and light industrial complex for its German separate account clients.
The €61.5bn global real estate manager said it acquired the fully-leased Hufelandstrasse complex in the north of Munich for an undisclosed sum. Hufelandstrasse comprises three buildings.
Fabian Manegold, senior transactions director for Germany, Austria and The Netherlands at Invesco, said: “We know the Munich market very well and the area is particularly interesting as there is effectively no structural vacancy in the surrounding area due to high demand, particularly from tech and engineering companies - even older stock buildings with sub-par quality are fully rented.“
Oliver Egle, associate fund management director at Invesco, said: “The long term value creation potential creates a significant upside potential for the asset, whilst providing downside protection as well – a convincing combination.
“Due to the fact that the asset is 100% and long-term let to an investment grade tenant, one of Germany’s largest industrial companies, the investment offers a secure and attractive income profile for our mandate with comparable high-income returns for the Munich market.“