Global investment giant AXA Investment Managers - Real Assets (AXA IMRA) has purchased a commercial development opportunity in Munich, Germany, from TREI, the real estate platform of the Tengelmann Group.
Financial details were not disclosed, but local sources suggested a price in excess of €75 mln for the 14,100 m2 site on Landsberger Strasse.
'We believe this major commercial development will deliver high-quality office space in what is a very supply-constrained Munich market,' said Christian Heyn, head of development in Germany at AXA IMRA.
'Our local team has identified a highly sought after and well-located inner-fringe location that offers potential significant upside through a development to hold strategy.'
Demolition of the existing 34,300 m2 buildings, let on short leases with low occupancy levels, is expected to commence in early 2019. The completed development will deliver up to 45,000 m2 of Grade-A office space across three buildings.
German developer FOM Real Estate, with whom AXA IM - Real Assets has a working relationship, will act as the development manager for the scheme.
AXA IMRA has completed over 250 projects with a total value of €14 bn in Europe since 2000, and is currently developing a further €9 bn of projects across the continent.
