AEW has bought an office asset at Leopoldstraße 240-244 in Munich, Germany, from Optima-Aegidius Group on behalf of its City Office Germany Fund.
AEW said the 11,600sqm property has an occupancy level of 93%.
As a result of this transaction, the fund’s total assets under management have increased to around €160m. No other financial details were disclosed.
Built in 2001, the property is located in the north of Munich on the western edge of the business district, Parkstadt Schwabing.
Sebastian Grobe, the director of investment management for the fund at AEW, said: “Munich has excellent prospects with the city’s northern submarket experiencing a shortage of office space.
”This asset in a thriving business district provides an attractive investment opportunity with significant rental growth potential in the short to medium term.”
Marc Langenbach, the head of funds and separate accounts for Germany at AEW, said: “This latest acquisition marks our third investment for the City Office Germany Fund.
”Munich is a market with strong fundamentals and ranks third after Düsseldorf and Hamburg in the Fund’s top seven target locations. Looking forward, we have a number of other assets under exclusivity.”
