Union Investment has acquired Pandion's largest office development ever in a forward funding transaction rumoured to be worth €600 mln.
Located in Munich’s Werksviertel district, in the immediate vicinity of Project East, which was acquired by Union Investment earlier this year through a joint venture with Hines, the new Pandion Officehome will provide a total of 44,700 m2 of leasable office space and 3,180 m2 of underground storage space arranged as a perimeter block development with two transverse wings.
Construction of the office building, which will provide around 1,500 workplaces, will start in January 2022 with completion expected for summer 2024. The building has already been let for 15 years to the Bundesanstalt für Immobilienaufgaben for use by the German Patent and Trade Mark Office since the summer of this year.
The complex will also include 309 underground parking spaces and around 400 bicycle stands, as well as a crèche and an employee restaurant.
The acquisition will be split equally between two real estate funds operated by Union Investment for institutional investors. The purchase price was not disclosed.
'Munich is Germany’s most stable office market and the Werksviertel is currently one of the city’s most sought-after submarkets. There is limited space available and office vacancies in this submarket are running at just 0.5 per cent. Many development projects have a correspondingly high pre-letting rate,' said Alejandro Obermeyer, head of Investment Management DACH at Union Investment.
'With the project in the Werksviertel, we are selling the largest office development in the history of our company to date," explained Pandion's CEO CEO Reinhold Knodel. 'In a prime location, we will realize a new and modern address for the employees of the German Patent and Trademark Office here in the next few years.'
