Luxembourg-based investment manager Corestate Capital has acquired an office complex in Munich in a club deal for €66 mln, securing debt in a seperate agreement to refurbish the property.
A €39 mln project financing loan has been agreed with IKB Deutsche Industriebank AG (IKB), to reposition the value-add property to core, the company said.
Matthias Heimann, head of debt advisory at Corestate, commented: 'I am delighted to be working with IKB as a lender for project financing for the first time. The financing package we have been provided with is characterised by favourable terms and a high level of flexibility, both important features for the intended repositioning.'
'The office complex has total leasable space of some 13,000 m2, of which roughly 75% is currently let to multiple tenants,' added Thomas Landschreiber, Corestate’s co-founder and chief investment officer.
'The property offers far-ranging opportunities to create new long-term value. In addition to renovations and improvements to the existing structure, for example, leasable space will be significantly expanded through the construction of a new multi-story office pavilion on an adjacent plot which is currently used as a car park but already approved for development,' Landschreiber said.
