InfraRed buys €40m Munich office scheme from Deka

UK asset manager InfraRed Capital has acquired a half-vacant office in Munich from German fund manager Deka Immobilien for €40 mln.

InfraRed, a value-add property and infrastructure spin-out from British bank HSBC, has bought a 25,000 m2 office scheme including 400 underground car parking spaces in the east of the city.

Built in 1982, the building is only 50% occupied with a weighted average lease term of 1.5 years.

The deal, earmarked for the Active Fund III, follows InfraRed’s previous purchase of the Leitwerk building in the same Munich district in November 2013, which the firm said had been successfully repositioned and re-let to tenants including the Bavarian Ministry of Health and Care and the German Patent Office.

'Applying our proven value-add expertise, we will seek to achieve the same with this investment undertaking an extensive refurbishment, modernisation and letting programme,' said Joram Szerkowski, in charge of German real estate investments at InfraRed.

InfraRed said it will seek further investments in Munich. 'Making repeat investments in select target markets has been a very effective way for us to source attractive opportunities. The Munich office sector is one of these markets,' Infrared's Andreas Katsaros said.