Allianz Real Estate has expanded its German real estate portfolio with the acquisition of a €214m office asset.
The €73.6bn manager said it has acquired the NM28 office building in Munich in a sale-and-leaseback transaction with Bertelsmann.
Allianz said the deal, which is expected to close in the fourth quarter of the year, was signed on behalf of several Allianz group companies.
Built in the late 1990s and located in Berg am Laim, NM28’s 32,726sqm are divided across two buildings connected by a two-storey foyer.
Annette Kroeger, CEO of Allianz Real Estate north and central Europe, said: “This acquisition represents an excellent opportunity to expand our German office portfolio and we are delighted to continue the good relationship with Bertelsmann as a prime, long-term tenant.
“With vacancy at just 2%, the ongoing supply-and-demand imbalance in Munich’s office market continues to offer attractive rental growth prospects and has facilitated the rise of new submarkets, such as Berg am Laim, within the city.”