Alternative investment specialist Investcorp has acquired a multi-let office complex dubbed Sunrise in Munich, Germany for around €73 mln.
Built in 1993 and refurbished in 2017, Sunrise is a 30,000 m2 office complex comprising four buildings, of which three are interconnected.
The property is currently 90% leased to a diversified tenant base with approximately six years of contractual, weighted average term remaining under the leases.
'The Munich office market represents an attractive investment opportunity given the combination of historically low vacancy, a limited supply pipeline and the city’s strong, underlying economy,' said Neil Hasson, managing director - head of Investcorp European Real Estate.
'With a shortage of office space in Munich’s city centre, as well as other central business districts across Germany, we believe that there will be growing demand in submarkets for prime assets like Sunrise,' Hasson added.
Sunrise is located in the Unterhaching submarket of Munich, Germany’s largest office market and Europe’s third largest office market. Munich has an office vacancy rate of 2.2% and prime office rents have increased by approximately 3% per annum on average since 2012, Investcorp said.
'We are pleased with the progress we are making to expand our real estate portfolio across geographies,' Hasson noted. 'Looking ahead, we remain focused on identifying additional opportunities to drive value for our clients and grow our footprint across Europe, particularly in Germany, Benelux, the UK and Ireland.'
Since its launch in June 2017, Investcorp has grown its total European real estate assets under management (AUM) to approximately €700 mln, of which €400 mln is located in Germany across five assets in the country’s top seven cities.