International real estate firm Hines has acquired an office asset in Munich on behalf of its Hines European Value Fund 2 (HEVF 2).
Financial details were not disclosed.
Comprising two adjacent office buildings at Fritz-Schäffer-Straße 9, the asset is located in Neuperlach, an established office, retail and residential destination in Munich.
The units comprise over 87,000 m2 of office space, and are fully let to German insurer Allianz.
Hines said it would seek building permits for a comprehensive refurbishment programme to transform the asset into a high-quality office-led, mixed-use scheme, including residential.
Paul White, HEVF 2 fund manager, said: 'We are delighted to have made a significant investment for HEVF 2 into the Munich office sector, a market we have been actively targeting for some time.
'Munich benefits from some of the strongest office fundamentals in Europe today, with demand also exceeding available volume and quality of space in the residential sector.'
Christian Meister, managing director for Hines Germany, added: 'We will significantly improve and re-launch the Fritz 9 location and we will aim to attract a strong and vibrant tenant mix.
'As always, we are determined to enhance the community in which the asset is located, and we are pleased to be a part of Munich’s exciting and dynamic market.'
HEVF2, which launched in September 2019, secured €637 mln of investor commitments out of a targeted €1.25 bn at first closing in January 2020, with subsequent closures expected to take place throughout 2020.