Munich-based property developer and investor Accumulata Real Estate Group has acquired a light industrial property in Ottobrunn, Bavaria, from pan-European investor and asset manager M7 Real Estate.
Financial details were not disclosed.
The asset was divested by M7 European Real Estate Investment Partners IV (EREIP IV). Situated at Christa-McAuliffe-Strasse 1, it has a lettable area of around 13,650 m2 and comprises a warehouse building with ancillary office space.
'We are pleased to purchase the property in a location which is significantly improving. The combination of a stable cash flow and potential for a future increase in value is a perfect fit with our long-term investment strategy,' commented Tobias Döscher, head of transaction management at Accumulata Real Estate Investment Management.
The building, which was constructed in 1982, also provides 130 car parking spaces. Occupied on long leases by two strong covenants, Flugzeug-Union Süd and Carl Stahl Süd, the asset’s weighted average unexpired lease term is seven years.
M7 acquired the property on behalf of the fund in 2017 when it also assumed the role of asset manager. Following the acquisition, M7 increased the occupancy of the building to 92%.
Accumulata will be taking over as the long-term asset manager of the property.
Richard Fletcher, M7 Germany's head of transactions said: 'Purchased as part of a portfolio for M7 EREIP IV, we have demonstrated our asset management expertise by reducing the vacancy and improving the long term cash flow of the property.
'Having identified this opportunity and stabilised the income in accordance with our business plan, we decided to sell the asset generating attractive returns for our investors. M7 continues to explore opportunistic sales, where appropriate, on behalf of the fund.'
Law firm Luther Rechtsanwälte advised M7, whilst Dentons, Oppenhoff & Rädler and Drees & Sommer advised Accumulata. Realogis Immobilien Munich acted as brokers for Accumulata.
