Union Investment and Hines have partnered to buy the MediaWorks office project in Munich’s Werksviertel district from real estate funds managed by Blackstone.

Union Investment, investing on behalf of its two open-ended retail real estate funds UniImmo Deutschland and UniImmo Europa, holds a majority stake in the partnership, while Hines acts as an equity partner and operational developer on the 96,000sqm site. Financial details were undisclosed.

Union Investment and Hines said they planning a refurbishment of the portfolio to develop the property into a modern campus.

MediaWorks Munich is located between Munich’s eastern railway station and Karl-Preis-Platz and forms the southern entrance to the Werksviertel.

Since the 1990s, the former manufacturing site has been upgraded to a lively and up-and-coming location and is now home to over 100 companies.

Alejandro Obermeyer, the head of DACH investment management at Union Investment, said: “Following the acquisition of the Neue Balan 27 project in the immediate vicinity, which is already well let, we are delighted to further expand our commitment in Munich at this location on the largest and most prominent site in the up-and-coming Werksviertel district.

“The investment is impressive first and foremost because of its enormous development potential, which we intend to drive forward in the short term by refurbishing the vacant space.”

Alexander Moell, a senior managing director at Hines, said: “With MediaWorks Munich, we are participating in a significant investment in one of Munich’s most attractive submarkets. In addition, this acquisition is testament to our belief in one of the most dynamic office locations in Europe.

“The site offers the best conditions for a sustainable project and we look forward to leveraging the great development potential together with Union Investment over the coming years.”

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

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