Pramerica and Gingko seal massive Siemens Campus deal

Pramerica Real Estate Investors and China's Gingko Tree have agreed the long-awaited mega acquisition of the 372,000 m2 Siemens Campus in Munich.

Pramerica announced the deal in a statement on Thursday but declined to confirm persistent reports over the last few months that the 'institutional investor' it partnered with for the transaction was the Chinese state-owned Gingko Tree Investments.

Pramerica also declined to give financial details for the transaction, although estimates have ranged from €420 mln to €500 mln over the last six months.

The vendor was a fund vehicle managed by HIH Hamburgische Immobilien Handlung and RFR Lux Holdings.

The Siemens office and research campus, a 425,390 m2 site located in Neuperlach Sued in southeast Munich, comprises 371,670 m2 of rental space across 37 buildings, parking facilities and open land.

'Growing consumer confidence and the prospects for job growth are fuelling improved occupier demand in Germany,' said Sebastiano Ferrante, head of Germany for Pramerica Real Estate Investors. 'We believe Munich’s positive demographic development and strong economic prosperity present excellent prospects and that the Siemens Campus is well-positioned to capitalise on these trends to produce attractive long-term returns for our investor partner.'

The campus is fully leased to German engineering conglomerate Siemens and is one of the group's largest locations worldwide. The property was developed on a 43-hectare site between 1977 and 1988. It was acquired by HIH and RFR from Siemens Pension Trust five years ago for an estimated €336 mln.