Investment manager Barings has acquired the Machtlfinger Hoefe office complex in Munich, southern Germany in an off-market deal from Conren Land.
Financial details were not disclosed. However, local sources believe the price paid is approximately €105 mln, reflecting a gross initial yield of a little over 3%.
The office complex in the Obersendling district encompasses around 21,800 m2 of rental space across three buildings. Built in 2003, the asset offers flexible office space and is nearly fully occupied.
'With over 20 tenants in the property, we have a very diversified income stream and at the same time significant value-add potential through new leases and extensions over the next ten years.
Sascha Becker, country head Germany at Barings said: 'Additionally, we are exploring technical optimisation and will implement measures to receive a sustainability certification for the building. It is also located close to the Die Zentrale office building, which we acquired in 2018 as part of our value-add strategy and have since successfully repositioned.'
Machtlfinger Hoefe is located southwest of Munich’s city centre. The location is set to profit in the medium-term from several new office and urban quarter developments nearby, including the redevelopment of the Ratzingerplatz square and the construction of a new tramline, adding to the institutional character of the asset.
Gunther Deutsch, head of real estate transactions – Europe at Barings, adds: 'This transaction is our fourth office deal in Europe this year, following the acquisition of a property in Stockholm, a development in Italy and a German office portfolio. It underlines our continued conviction in office assets that are high quality and in excellent locations, which meet our investment criteria.'
BNP Paribas Real Estate advised Barings, as did Linklaters (legal) and TA Europe (technical due diligence). The financing partner is pbb Deutsche Pfandbriefbank.
