Union Investment has acquired an office development on the Neue Balan mixed-use campus in Munich in one of the biggest single-asset deals in Germany so far this year.
The scheme was acquired from local investor Allgemeine Südboden Grundbesitz. Although the purchase price was not disclosed, Union is understood to have paid around €350 mln for the property.
Known as Neue Balan Haus 27, the building will offer over 32,000 m2 of office space over nine floors, with parking for 330 cars on two basement levels. Completion is scheduled for the first quarter of 2021.
The property is around 60% let, with the vendor providing a rental guarantee for the remaining unlet space. The main tenants are Autodesk, a software company, and Jameda, an online advertising portal for the healthcare sector.
Union will add the property to its open-ended real estate fund Unilmmo: Deutschland. It is the company's third major investment in Germany this year following the purchase of the Ericus-Contor building in Hamburg and the acquisition of the Medicus portfolio.
Union was advised on the Neue Balan deal by Savills, P + P Pöllath + Partner and Hogan Lovells. The seller was advised by Heuking Kühn Lüer Wojtek.
'The Neue Balan campus is a compelling work-life balance concept offering a high degree of flexibility. This type of development is rare in Munich. The space caters to the latest requirements of many national and international SMEs and start-ups,' said Alejandro Obermeyer, head of investment management DACH at Union Investment Real Estate.
The Neue Balan complex, which received the Building Healthy Places award from the Urban Land Institute (ULI), has been under development since 2007. Besides office space, it is home to food outlets, retail and fitness facilities as well as a university and Montessori school. Together with the neighbouring districts of Werksviertel and Berg am Laim, it forms a varied office cluster within walking distance of a number of public transport links.
Union Investment currently manages an office property portfolio in Munich worth around €2 bn.
