Built in the late 1990s, NM28, the 32,726 sqm office building in Munich, is coposed of two buildings connected by a two-storey foyer. The asset is in excellent condition due to long-term owner occupancy and various new fit-outs over the last 20 years, says Allianz Real Estate.
Located in Berg am Laim, an up-and-coming southeastern borough of Munich, it offers tenants a diversified neighbourhood including retailers, hotels and supermarkets and benefits from several development projects taking place in the area including Die Macherei, New Eastside Munich, NEO Baumkirchen-Mitte and Streitfeld-Lofts.
“This acquisition represents an excellent opportunity to expand our German office portfolio and we are delighted to continue the good relationship with Bertelsmann as a prime, long-term tenant. With vacancy at just 2%, the ongoing supply-and-demand imbalance in Munich’s office market continues to offer attractive rental growth prospects and has facilitated the rise of new submarkets, such as Berg am Laim, within the city,” said Annette Kroeger, CEO of Allianz Real Estate North & Central Europe.
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”The city, noted the report, has seen around EUR 12 billion of office transactions over the past five years…”
Munich was recently ranked second for core and third for value-add opportunities in Allianz Real Estate’s 2019 Cities that Work report. The city, noted the report, has seen around EUR 12 billion of office transactions over the past five years and has the highest forecast real rental growth rate for the next five years – making it one of the leading office markets in Europe and, as such, a target city for Allianz Real Estate.
Allianz Real Estate was advised by CMS Hasche Sigle, Arcadis, Westbridge, EY and BNP Real Estate; the seller was advised by HFK and CBRE.Closing is expected to complete in Q4 2020.