Pan-European investor Patron Capital and its asset management partner, Barings Real Estate Advisers have sold an office building in Munich to a British institutional fund manager for €40 mln.
The deal for the asset known as 'connect', located on Ridlerstrasse 55 in Munich's Westend, was completed off-market. The buyer was not named.
'Having substantially improved and fully let this building ahead of plan, we are pleased to complete this sale providing an excellent return for our investors in Fund IV. Post the excellent work by the team in repositioning the asset, it attracted significant interest ahead of a formal sales process given its prime location, quality and high-calibre tenant roster,' commented Keith Breslauer, managing director of Patron Capital. 'Germany remains an important market for Patron and we are very active in various new investments across the country with a target of €300 mln of capital to invest.'
The multi-tenant building was acquired in 2014 by Patron and Barings with 40% vacancy and a weighted average unexpired lease term of five years for the remaining tenants. Patron and Barings repositioned the 129,300 sq ft property, which comprises five storeys of office space as well as 147 car parking spaces.
Following refurbishment, the building was fully let, attracting new tenants and extending leases with existing tenants. The asset has been fully occupied since November 2015.
CBRE advised Patron Capital and Barings; Savills, who also advised on the original acquisition by Patron and Barings, advised the buyer. GSK Stockmann + Kollegen acted as legal adviser to Patron and Barings.
