Fidelity International said its Pan-European Real Estate Fund has made its first investment in Germany with the acquisition of a Munich office building for EUR 17.85mln. Fidelity said the purchase price for the building, which is fully let to Olympus Life Science Research Europa, reflects a yield of 5.9%. The tenant has just completed fit-out works and taken a new ten-year lease with annual indexation.
Fidelity International said its Pan-European Real Estate Fund has made its first investment in Germany with the acquisition of a Munich office building for EUR 17.85mln. Fidelity said the purchase price for the building, which is fully let to Olympus Life Science Research Europa, reflects a yield of 5.9%. The tenant has just completed fit-out works and taken a new ten-year lease with annual indexation.
Fidelity said it also planned to open a new office in Munich, which is currently going through regulatory notifications. Fidelity said that office is designed to act as a strategic basis for Fidelity's director of European real estate, Keith Sutton, to identify and manage real estate in continental Europe. 'We already have a team in London and Luxembourg and our vision is to continue our expansion into other key centres such as Paris, Frankfurt, and now Munich,' Sutton said in a statement.
The Munich office building is the sixth acquisition made by the EUR 250mln Fidelity Pan-European Real Estate Fund and the asset manager said it planned to announce other acquisitions shortly.
