BNP Paribas REIM acquires Art Deco office in Munich

BNP Paribas REIM Germany has bought the Art Déco Palais office building in Munich’s Arnulfstrasse for one of its real estate special funds from an undisclosed investor consortium.

The 41,000 m2 multi-tenant building was bought for a price in the low three-digit million euro range, the company said.

Built by Robert Vorhoelzer in 1924 as the Regional Post Directorate, the seven-storey property is regarded as one of the few examples of classical modernity in Munich. Between 2007 and 2010 the previous owner comprehensively renovated and redesigned it to adapt it to modern requirements.

The complex is currently 98% let with tenants including Deutsche Post Immobilien and another 30 occupiers. The average remaining term of the tenancy agreements is 4.5 years, without taking into account options for extensions.

Reinhard Mattern, CEO of BNP Paribas REIM Germany, said: 'From an investor’s viewpoint the unrestricted pull of Munich coupled with little new-build activity is an added bonus, which is why we can assume further rental growth. The broad mix of tenants ultimately guarantees stable, secure rental income.'

The purchase follows the acquisition in 2014 of Renaissance House in the immediate vicinity of the Art Déco Palais property.

BNP Paribas REIM Germany was assisted in the transaction by Drees & Sommer and Clifford Chance. The vendor’s consultant on the sale was Honert + Partner.