European fund manager AEW has acquired an 11,600 m2 office asset at Leopoldstraße 240-244 in Munich, from Optima-Aegidius Group on behalf of its City Office Germany Fund.
As a result of this transaction, the fund will lift its total assets under management to around €160 mln.
Financial details were not disclosed.
Built in 2001, the property is located in the north of Munich on the western edge of the business district, Parkstadt Schwabing. It has an occupancy level of 93%, with tenants including Leopoldstraße Business Center, as well as the Free State of Bavaria, ZF Friedrichshafen and Accedo.
'Munich has excellent prospects with the city’s northern submarket experiencing a shortage of office space,' commented Sebastian Grobe, director of Investment Management for the Fund at AEW. 'This asset in a thriving business district provides an attractive investment opportunity with significant rental growth potential in the short to medium term.'
Marc Langenbach, head of Funds and Separate Accounts for Germany at AEW, said: 'This latest acquisition marks our third investment for the City Office Germany Fund. Munich is a market with strong fundamentals and ranks third after Düsseldorf and Hamburg in the Fund’s top seven target locations. Looking forward, we have a number of other assets under exclusivity.'
AEW was advised by King & Spalding Frankfurt/Main. The vendor was advised by Kanzlei Zirngibl München. Colliers acted as commercial advisor.
