AXA Investment Managers - Real Assets has bought a 11,200 m2 office building in Munich for a new, Italian closed-ended fund.
Taunushaus is an office building located in Munich’s Milbershofen business district. This is the first acquisition made on behalf of the Hadrian fund, an Italian regulated fund targeting pan-European office and retail assets. The transaction price was not disclosed.
'This acquisition further underpins our conviction in the strength of the Munich real estate market, illustrated by our sequence of recent acquisitions within this leading city,' commented Matthias Leube, regional head of asset management & transactions at AXA IM - Real Assets in Germany. 'In order to further capitalise on the growth and the resilience of the Munich office market, we will look to deploy a number of asset management initiatives to create the upmost value for our investor clients.'
Taunushaus comprises 11,200 m2 of space spread across six storeys, currently fully let to a number of German businesses on long leases, including a telecommunications company as lead tenant.
The Hadrian Fund's target equity size is €200 mln, of which €146 mln has already been raised. The fund raising process is due to close in May 2017. AXA said that the fund size would potentially be increased to €400 mln with selective leverage.
