KGAL buys Munich office building for EUR 33m

German fund manager KGAL said on Thursday that it has acquired the Eisbach Offices complex in Munich-Schwabing from NB Project Development for around EUR 33 mln. The building is earmarked for KGAL's new closed-end real estate fund, Property Class Germany 12, which will be marketed to investors in the third quarter of 2010.

The property is 100%-leased to 14 tenants with an average remaining lease of 7.5 years. The buyer and the Munich-based seller acted without intermediaries.

Last April, KGAL 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 area, is located in the centre of the city, and was acquired for EUR 78 mln. It is 87%-prelet, with the large majority of the space (74%) being rented to subsidiaries of OBB, the Austrian state-owned national railway company.