The property arm of German insurance giant Allianz has acquired the NM28 office building in Munich for €214 mln in a sale-and-leaseback transaction with German media company Bertelsmann.
The deal, signed on behalf of several Allianz group companies, is expected to close in Q4 2020. The asset is situated in Berg am Laim, an up-and-coming southeastern borough of Munich.
Built in the late 1990s, NM28’s 32,726 m2 are divided across two buildings connected by a two-storey foyer. According to Allianz, the asset is in excellent condition due to long-term owner occupancy and various new fit-outs over the last 20 years.
'This acquisition represents an excellent opportunity to expand our German office portfolio and we are delighted to continue the good relationship with Bertelsmann as a prime, long-term tenant,' said Annette Kroeger, CEO of Allianz Real Estate North & Central Europe.
'With vacancy at just 2%, the ongoing supply-and-demand imbalance in Munich’s office market continues to offer attractive rental growth prospects and has facilitated the rise of new submarkets, such as Berg am Laim, within the city,' Kroeger added.
Munich was recently ranked second for core and third for value-add opportunities in Allianz Real Estate’s 2019 Cities that Work report. The city, noted the report, has seen around €12 bn of office transactions over the past five years and has the highest forecast real rental growth rate for the next five years in Europe.
Allianz Real Estate was advised by CMS Hasche Sigle, Arcadis, Westbridge, EY and BNP Real Estate; the seller was advised by HFK and CBRE.
