Invesco acquires Munich office and light industrial complex

Global real estate investment manager Invesco Real Estate has acquired a 20,600 m2 office and light industrial complex in Munich on behalf of one of Invesco’s German separate account clients.

Financial details of the off-market transaction were not disclosed.

The Hufelandstrasse complex, located north of Munich, is currently 100% leased to one investment grade tenant, one of Germany’s largest industrial companies.

The asset comprises three buildings with a range of potential uses, including a modern four-storey office building, flexible spaces for workshop and construction, and a parking garage. Munich city centre is less than 15 minutes away by car.

'We have a very strong track record of active ownership, having acquired several office buildings in Munich over the years. Completing this promising off-market transaction is further testament to our local market expertise and network,' said Fabian Manegold, senior director – transactions for Germany, Austria and The Netherlands at Invesco.

'We know the Munich market very well and the area is particularly interesting as there is effectively no structural vacancy in the surrounding area due to high demand, particularly from tech and engineering companies - even older stock buildings with sub-par quality are fully rented.'

The property is located in Milbertshofen, a strongly developing submarket of Munich, according to Invesco, where the average annual take-up is more than nine times higher than current vacancy.

'The long term value creation potential creates a significant upside potential for the asset, whilst providing downside protection as well – a convincing combination,' said Oliver Egle, associate director – fund management at Invesco.

Invesco was advised by CMS (legal) and RE-Konzept (technical).

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