A consortium comprising Morgan Stanley Real Estate Investing (MSREI), Austrian retail specialist CC Real and an unnamed state fund has acquired the Millennium Tower office building and Millennium City shopping and entertainment centre in Vienna.

A consortium comprising Morgan Stanley Real Estate Investing (MSREI), Austrian retail specialist CC Real and an unnamed state fund has acquired the Millennium Tower office building and Millennium City shopping and entertainment centre in Vienna.

Terms of the transaction were not disclosed. However, German media put the purchase price at more than €315 mln, based on market sources. The mixed-use scheme is believed to have been valued at €320 mln in 2009.

The vendor is a fund managed by Hamburg-based investment manager MPC Capital, which bought the complex from its owner George Stumpf in 2003 for €360 mln .

The acquisition, which will be financed by Aareal Bank is expected to close during the third quarter of 2014.

Millennium Tower opened in 1999 and is one of Austria’s tallest office buildings at 202 metres, with 40,000 m2 of office space.

Millennium City, built in 2003, offers more than 100 shops and a state-of-the-art entertainment section which together represent 53,000 m2. The properties have an Austrian Sustainable Building Council (ÖGNI) environmental certificate.

'This investment is consistent with our strategy of buying high quality assets with potential to improve underlying performance through asset management initiatives. We look forward to managing the asset as we seek to deliver additional value to our investors,' commented Brian Niles, head of MSREI EMEA.

CC Real has developed and operated shopping centers with a business area of over 300,000 m2 in Austria and Croatia since 2007. The portfolio encompasses three shopping centers in Croatia and the Center West in Graz, acquired from the Inter IKEA Centre Group (IICG).