Allianz Real Estate has acquired an office complex refurbishment project in Munich for €190 mln.
The 26,000 m2 Atlas office building is situated in the Werksviertel office cluster within the Mittlerer Ring in Munich. The real estate arm of German insurer Allianz completed the acquisition, structured as a forward-purchase deal, from German-based real estate investment firm Art-Invest Real Estate.
This was the second major transaction in Munich within a matter of days. On 21 February, Art-Invest acquired the SZ Tower, located on Hultschiner Strasse 8 in Munich, from landlords Norges Bank Real Estate Management and AXA France, for €244 mln.
Atlas refurbishment
Allianz Real Estate said that the acquisition of the Atlas complex was the next step in its European core office strategy, which targets quality office buildings in high-demand, prime city locations with a minimum 10-year investment term.
Atlas comprises a 14-storey tower, which is currently undergoing a complete refurbishment. The property will also be extended with a newly constructed annex and parking facility, with a completion date in the second quarter of 2019, when the closing of the deal takes place. The work includes a new, distinctive façade and several roof terraces. Some 92% of total space is already pre-leased to three tenants, led by Publicis Groupe.
Atlas is located close to the Ostbahnhof in the Werksviertel district. It is also one of the city’s last large office development areas inside the Mittlerer Ring. The area, Allianz Real Estate said, has proved very popular among creative and digital companies.
'The Atlas deal underlines our strategy to expand our office portfolio in prime locations in Tier 1 European cities. The Werksviertel district has become a sought-after business hub in Munich and we believe demand will escalate given the fundamentals driving the local market,' said Annette Kröger, CEO North & Central Europe at Allianz Real Estate. 'To date, Allianz Real Estate has not invested in this district and, as such, this acquisition delivers compelling diversification benefits to Allianz’s office portfolio in Munich,' she added.
The acquisition follows on from a number of recent deals in Munich by Allianz Real Estate, including the purchase of the office project development Kap West on behalf of various Allianz companies, announced in March last year.
Allianz was advised by Clifford Chance, EY, Colliers and CBRE Preuss Valteq during this transaction, Art-Invest by GSK Stockmann and BNP Paribas Real Estate.
