Luxembourg-based investment manager Corestate has acquired another property in Munich for €54 mln, as it continues its buying spree in the Bavarian capital.
The mixed-use asset, located in East Munich in Am Schatzbogen, comprises a total lettable area of 22,635 m2 and 260 parking spaces. Just under two-thirds of the space is used for offices, 15% for storage and the rest consists of production areas, a nursery and other types of use. Corestate said that the property has a diversified tenant base.
'We will turn this property into an attractive asset for both tenants and investors again, essentially through modernisation,' said Thomas Landschreiber, co-founder and chief investment officer of Corestate.
'The main value driver for us is the current leasing potential of the property. Although its current occupancy rate is 88%, which means that its cash flow is high, we expect rental income to increase by around 30% after modernisation, given the average rents achievable in the area,' Landschreiber added.
The deal follows the announcement last week that Corestate had acquired a Munich office for €66 mln in a club deal, with plans to execute a full refurbishment.