Built in 1982 on a site totalling c. 13,000sqm, the property comprises c.25,000 sqm of lettable area and over 400 underground car parking spaces. The asset is located in the East of Munich in close proximity to the “Ostbahnhof”, Munich’s second largest train station and is only a short drive from the Central Business District. The property benefits from multiple public transport links including an adjoining overground (“S-Bahn”) station and enjoys excellent access to the national motorway network being adjacent to Munich’s major ring road. InfraRed acquired the office building with c. 50% occupancy and a weighted average lease length of c. 1.5 years.
Joram Szerkowski, responsible for real estate investments in Germany at InfraRed, commented:
“This is our second transaction in this dynamic sub-market of Munich, following the acquisition of the ‘Leitwerk’ in November 2013, a c. 40,000 sqm office building, which has since been successfully repositioned into a core asset. Applying our proven value-add expertise, we will seek to achieve the same with this investment undertaking an extensive refurbishment, modernisation and letting programme.”
Andreas Katsaros, responsible for real estate strategy and origination at InfraRed added:
“Making repeat investments in select target markets has been a very effective way for us to source attractive opportunities. The Munich office sector is one of these markets and we are delighted to have made the second Munich investment within a relatively short time period for our Active Fund III.”