A club deal of three German insurance firm, managed by Savills Investment Management has acquired a six-storey office building in Munich.

The manager said the Savills IM Real Invest 1 fund has bought the 16,200sqm property as part of an asset deal with Catalyst Capital’s European Property Fund II (CEPF II).

Financial details were undisclosed.

Savills IM said the building, which was constructed in 2003, is fully let on a long-term lease.

The acquisition is the first in Munich for the Savills IM Real Invest 1 fund, which was set up in 2013.

The fund now has eight properties in seven German cities, including Berlin, Hamburg and Stuttgart and a purchase agreement has also been signed for an office building still under construction in Nuremberg.

Stephan Huber, associate director investment at Savills Investment Management, said: “Munich has seen falling vacancy rates and rising rents for years, so we are delighted to have secured for our investors this modern and flexible office building in such a competitive market.

“With the property’s strong tenant and its excellent subway connections – you can get to Munich’s main train station in 15 minutes – it represents a sustainable investment.”

Tim Ulrich, deputy head of transaction management, Germany, at Savills Investment Management, said: “Our reputation as a professional and reliable transaction partner, plus our extensive experience, have proven yet again to be the decisive factors in securing this asset and giving added value to our investors.

“Our excellent relationships with all the major players meant we had access to assets in a very competitive market with a limited supply of high-quality properties.”