German fund manager KGAL said that it has acquired the LX2 office project in Vienna on behalf of its newly-established Property Class Austria 7 fund. The property, which will offer 15,500 m[sup]2[/sup] of total surface, is located in the centre of the city, directly across the project from the new Central Station, scheduled for completion in 2012. The total investment volume amounts to EUR 78 mln.
German fund manager KGAL said that it has acquired the LX2 office project in Vienna on behalf of its newly-established Property Class Austria 7 fund. The property, which will offer 15,500 m2 of total surface, is located in the centre of the city, directly across the project from the new Central Station, scheduled for completion in 2012. The total investment volume amounts to EUR 78 mln.
The asset is 87%-prelet, with the large majority of the space (74%) being rented for 15 years to subsidiaries of OBB, the Austrian state-owned national railway company. The property is due for delivery in June 2011. KGAL said it is investing EUR 39 mln of own capital in the acquisition, with the rest being provided by the other investor in the fund.
Property Class Austria 7 fund, launched in March 2010, is the seventh Austrian investment vehicle launched by KGAL since 2001.
According to the company, 'the Vienna office sector is an important target market for KGAL Asset Management, which has established a subsidiary in the Austrian capital'. The unit currently holds 24 properties in the city with 330,000 m2 of total surface and a value of over EUR 850 mln.
