DIC Asset has completed the off-market deal for the Hochhaus Uptown München, a 146-metre-high skyscraper in the Moosach district of Munich, plus another office asset dubbed Campus C, for a total investment of €635 mln.
PropertyEU revealed a month ago that the opportunistic investor was in the lead to acquire the first asset from GIC, the Singaporean sovereign wealth fund, for a sum around the €550 mln mark. The deal closed at €569 mln.
The asset is also known as the O2 Tower, due to the occupancy of the mobile operator, which has prominently branded the property with its insignia. It is the tallest building in the state of Bavaria.
The second investment, Campus C, is a fully-occupied multi-tenant property, which was acquired for €66 mln and will be held in DIC's own portfolio.
Providing a gross lettable area of 9,200 m2, DIC said the property had 'value-add character and promises a steadily increasing value appreciation potential'. The main tenants of the property are the US software company Adobe Systems and two public sector tenants.
The annual rental income approximates €2.4 mln, while the secure remaining lease term is 3.1 years. The property is defined by its high alternative use potential, according to DIC, as it can be divided into units comprising parts of a floor or entire floors.
Sonja Wärntges, CEO of DIC Asset said: 'We acquired two of Munich's defining landmark properties. This acquisition demonstrates just how well we are networked in the market.
'Whenever trophy properties like these come onto the market, we stand every chance of success, creating value for our investors and for ourselves.
'Moreover, we now have an even stronger presence on Munich's market with these two properties. We are witnessing a continuous inflow of companies, and a steadily rising demand for modern and flexible office units.
'We are now in a position to provide these. And we could further enhance the appeal of the properties by upgrading them for their green building certification. Employing the dynamic performance we are known for, we create value-added for the city, the people in it, and for our business partners.'
DIC said its plan for the assets included seeking the speedy certification of the two properties as green buildings. About 20% of its total assets under management, which currently amount to €10.6 bn, are already certified at this time. Getting these acquisitions certified will bring the proportion up to about 25%.
DIC said the deals expanded its portfolio share of properties in Munich from 7% to more than 11% by market value. The DIC office in Munich will provide on-site management of the two properties.
