GIC is in talks to sell the 50,000 m2 O2 Tower in Munich for more than €550 mln.
The Singaporean sovereign wealth fund has selected German investor DIC to buy the 38-storey tower after a restricted, off market sales process handled by BNP Paribas.
O2 Tower could be the third large office deal to go ahead in Germany this quarter, all of them in Munich.
Last month Union Investment and Hines bought MediaWorks, an office complex also in Munich, from Blackstone for a price believed to be €650 mln.
And Imfarr the Austrian private developer/investor which bought Frankfurt’s Silver Tower at the end of 2020 with the Ketterer family office, is in exclusivity to buy the 71,600 m2 HighLight Towers in Munich. HighLight Towers’ vendor, Commerz Real, is seeking at least €650 mln.
However, terms for the HighLight Towers transaction are not yet agreed.
GIC agreed to buy the O2 Tower from Hines in 2006 for €300 mln and O2 moved in the following year. The skyscraper and four associated campus-style buildings are opposite the former Olympic stadium on Georg-Brauchle-Ring, next to the Olympia shopping mall.
In 2016, GIC considered selling it and hired JLL but no sale went ahead.
One broker not directly involved in the current deal said: ‘If it is €550 mln, that is a very good price. And for the buyer, the rents are not that high and they will be able to relet within a few years at higher levels’.
DIC is known as an opportunistic investor but also has core capital to invest from savings banks clients. Last year it invested approximately €800 mln in Germany.
