LFF buys Munich office building to take German spending to €140m

Franco-British joint venture La Française Forum Real Estate Partners (LFF Real Estate Partners) has acquired a seven-storey office building in Munich from a fund managed by LHI Group.

The Laimer Atrium comprises 11,450 m2 of office space and 184 underground parking spaces, along with a large atrium and roof terraces. The transaction is believed to be worth around €50 mln. Colliers International acted for the vendor.

The building is fully let to 12 tenants, including train operator Deutsche Bahn, Postbeamtenkrankenkasse and SALT Solutions GmbH.

LFF Real Estate Partners has invested around €140 mln so far this year in German real estate. Its first acquisition was a 6,000 m2 office building in Hafenplatz, part of the new Hafen Offenbach development that borders Frankfurt, for around €20 mln.

Jens Göettler, managing director Germany, said: ‘Munich offers a rare combination of a high level of stability with strong growth prospects from a vibrant local economy. The low vacancy and the limited development pipeline are working in our favour and should support high occupation rates and rental growth prospects.’

LFF is a joint venture formed in 2014 between European asset manager La Française and UK-based Forum Partners. It sources diversification opportunities in the UK, German, French and Swedish markets for La Française and its French domiciled SCPIs.