Pan-European fund Europa Direkt has purchased a 10,000 m2 office property in a subsurb of Munich in its first acquisition.
Pan-European fund Europa Direkt has purchased a 10,000 m2 office property in a subsurb of Munich in its first acquisition.
The property is located at 7-13 Elsenheimerstraße in the Laim suburb of the German city. The investment volume of €25.3 mln reflects a yield of 6.6%.
Savills advised Europa Direkt, while Billfinger Real Estate Agroneo acted on behalf of the vendor.
The six-storey property is located to the west of Munich city centre in an established office hub. It was built in 1995 with a major refurbishment of the entire building carried out in 2010. The asset is currently 97% let to 16 tenants including Barmer, Elly & Stoffel and Mouser Electronics.
Alexander Zahrt, associate director in the investment team at Savills in Germany, commented: 'This deal is evidence that there is growing interest and demand from investors for assets in secondary locations and it confirms Savills view that buyers are increasingly looking to make acquisitions at higher yields for greater returns. This strategically located modern asset has strong fundamentals with a stable cash flow, a diverse rental structure and good connections to the inner city boasting a combination hard to find in Munich.'
