AXA IM Alts has bought a site in Germany for a €185m hybrid timber office development.

The asset manager said it has acquired the site in central Munich, on behalf of clients, on which it plans to develop an “innovative and highly sustainable hybrid timber office”.

AXA IM Alts has hired Accumulata Real Estate as the local developer for the project situated on the corner of Schwanthalerstraße and Goethestraße in the centre of Munich.

The office building will be primarily constructed of sustainably sourced wood using a timber frame around a concrete core.

AXA IM Alts said it is undertaking the project on behalf of its fifth-generation development strategy which recently raised €800m at first close.

The strategy targets developments with strong environmental, social, and corporate governance (ESG) credentials with a particular “focus on high quality, technologically advanced and amenity-rich office developments that are experiencing increased occupier demand as a result of Covid”.

Ulrike Haack, the head of transactions Germany, AXA IM Alts, said: “This acquisition allows us to help set a new standard in sustainable development while delivering a prime new green office building into the structurally under-supplied Munich market.

“We are confident that this high-quality, sustainable and technologically advanced office project will deliver the type of office space businesses will prioritise as we gradually emerge from the pandemic and develop new ways of working.”

Sylvie Losch, the head of development Germany, AXA IM Alts, said: “We have been very clear in stating our ambition, both for this development strategy and as a wider group, to marry the needs of ESG stewardship with occupiers’ demand and the investment requirements of clients of our fifth-generation development strategy.

“Embarking on this highly innovative hybrid timber frame development is a clear example of how we can achieve this while actively minimising our environmental impact.”

To read the digital edition of the latest IPE Real Assets magazine click here.