AXA Investment Managers - Real Assets has bought a commercial development opportunity in Germany for an undisclosed sum.
The asset manager said it acquired that property on behalf of clients from TREI Real Estate, the real estate platform of the Tengelmann Group.
The acquisition forms part of AXA IM - Real Assets’ strategy to invest in development opportunities in growth cities across Europe.
The 14,100sqm site occupies a prime inner-fringe location on Landsberger Strasse, Western Munich.
Demolition of the existing 34,300sqm buildings, let on short leases with low occupancy levels, is expected to commence in early 2019.
The completed development will deliver up to 45,000sqm of flexible Grade-A office space across three buildings, suitable for a range of occupiers.
German developer FOM Real Estate, with whom AXA IM - Real Assets has a growing relationship, will act as the development manager for the scheme.
This transaction forms part of AXA IM - Real Assets’ ongoing strategy to undertake or acquire large-scale and high-profile developments in growth cities across Europe, building out its portfolio of core assets.
Christian Heyn, head of development in Germany at AXA IM - Real Assets, said: “We believe this major commercial development will deliver high-quality office space in what is a very supply-constrained Munich market.”