Real IS acquires mixed-use asset in Munich

German fund manager Real IS has acquired a mixed-use property in Munich for an undisclosed sum.

Real IS carried out the transaction on behalf of its Southern Germany funds. The mixed-use asset was purchased from a vehicle managed by Jargonnant Partners, advised by Savills.

Built in 1993 and refurbished in 2013, the scheme at Charles-de-Gaulle-Straße 2-3 is located in the Neu-Perlach district of the city. The property comprises 6,100 m2 of offices, 920 m2 of retail and 980 m2 of residential space.

Alexander Zahrt, director of investment at Savills Germany, commented: 'Charles-de-Gaulle-Straße 2-3 is an attractive mixed-use space which generates a strong secure income. We advised Jargonnant Partners on their acquisition of the scheme in 2011 when vacancy was at 80%, it now boasts on occupancy rate of 93%, demonstrating one of the best examples of a value-add investment strategy in the market.'

Andreas Wende, head of investment at Savills Germany, added: 'The Munich investment market is very strong currently with volumes up 13% in H1 2014 at €1.6 bn compared to H1 2013. The market is booming, with one record deal surpassing the next.'