Europa Capital has purchased an office asset in Munich on behalf of Mitsubishi Estate London, an affiliate of Japanese investor Mitsubishi Estate, for a new core-plus initiative in European offices.
The 22,000 m2 multi-let office building located in Unterfohring, Munich, was acquired from Ekistics Property Investors 1 LP for an undisclosed sum. The property is currently 88% let to a diverse tenant base at rents below market levels which offers reversionary potential, Europa said.
'This off-market acquisition marks the beginning of a new product line in a lower risk area from our pan-European value-add funds. We strongly believe in the continuing performance of the German economy and property market and intend to assemble a diversified portfolio, attractive to institutional investors,' commented Nic Fox, partner at Europa.
The new core-plus initiative will initially focus on the principal German cities, as part of a continuing drive by Mitsubishi Estate to expand and diversify its overseas portfolio. Europa Capital is a member of Rockefeller Group International, a wholly owned US subsidiary of Mitsubishi Estate.
The intention in the medium term is to attract other institutional investors by offering an exposure to Europe's principal office markets, once critical mass is achieved. Europa Capital will asset manage the portfolio.
'The real estate fundamentals underpinning both this building and the wider Munich office market make this an excellent initial acquisition for the new partnership with Europa Capital,' said Yuichiro Shioda, managing director and CEO of Mitsubishi Estate London. 'As we build this new portfolio, we will be targeting further acquisitions in similarly strong markets across continental Europe.'
Ekistics was advised by BNP Paribas Real Estate on the sale. The vendor said it had retained Elystan Capital Partners as its local operating partner over the life of this project.
Savills advised Europa Capital on the acquisition.
