Government Pension Fund Global (GPFG), Norway’s sovereign wealth fund, will receive €122.1m for its 50% share in Munich’s SZ Tower, as its link up with AXA France offloads a second large real estate asset in the same month.
The glass-fronted tower block, which marks the eastern approach to the city centre is being bought by a subsidiary of Art-Invest Real Estate.
The Cologne-based property investor said it bought the asset, located on Hultschiner Strasse 8 in the Bavarian capital on behalf of a closed special investment fund, which it manages for several German institutional investors.
Norges Bank Real Estate Management, which manages property investment for GPFG, said the sale agreement was signed on 20 February, and completion is expected within the next two months.
Ferdinand Spies, chief executive of Art-Invest and head of the Munich office, said: “With the SZ Tower, we have secured an office property of the highest possible quality for our investors, in the up-and-coming eastern part of Munich, with a tenant of high credit quality.”
The tower block offered investors a high-yield investment with the potential for long-term value creation, he said.
The 62,200sqm building, which has the Süddeutsche Zeitung publishing house as its sole tenant, has around 51,100sqm of office space with the remaining space used as archive, conference, restaurant and daycare facilities.
The sale was announced just four days after Norges Bank said its AXA France partnership sold a property in the suburbs of Paris for €126.5m.