Union Investment has purchased a 14,000 m2 office building in Planegg near Munich from LIP Ludger Inholte Projektentwicklungs, representing its first new acquisition for its special real estate fund UII German M. The transaction volume was not disclosed.
Completed in 2014, the property is fully let to Morphosys AG, having recently become the biotech company’s new headquarters. As well as over 10,000 m2 of office space, the asset also includes a 2,300 m2 research laboratory, 1,400 m2 of storage space plus 283 parking spaces. It is certified Gold in line with German Sustainable Building Council (DGNB) standards.
'UII German M provides institutional investors with a new opportunity to invest in medium-sized properties in central locations of secondary cities and specialist locations in Germany,' commented Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property. 'The interesting risk profile offers correspondingly higher income opportunities, even in the current low interest rate environment.'
The fund was launched with an initial 22 properties and real estate assets totalling €313 mln. The asset in Planegg is the first new acquisition for UII German M, which seeks to acquire properties with an occupancy rate of around 80-90% in the Rhein-Ruhr, Rhein-Main and Munich regions.
