Real IS, the real estate arm of Bavarian savings bank BayernLB, has acquired a mixed-use scheme in Munich for €190 mln.
The vendor was a subsidiary of Austrian firm UBM Development.
The project, located at Leuchtenbergring 20 on the Mittlerer Ring, comprises 35,000 m2 of total rental area, including an office, retail space, and a planned four star Holiday Inn hotel.
The asset represents the first acquisition for Real IS's Theme Fund Germany II.
'This project development in Munich fits optimally to the core/core-plus strategy of the Themenfonds Deutschland II and gives our investors a fast first,' commented Real IS CEO Jochen Schenk.
The new fund plans to build a diversified German real estate portfolio of office and retail real estate, complemented by residential, hotel and logistics properties, the company said, with an investment horizon of 10 to 12 years.
The building will be constructed over six upper and two lower floors, with 387 parking spaces, with completion due in 2018. Tenants are set to include Scout 24, two-wheeler Stadler and the four-star Holiday Inn, all with long-lease contracts. The hotel will comprise around 12,800 m2 of space.
