UniCredit plotting €1.2b sale of Munich campus - report

Italian global banking firm UniCredit is reported to be eyeing the sale of its Tucherpark campus in Munich via its German subsidiary HypoVereinsbank (HVB), seeking around €1.2 bn to close the deal.

The campus, which covers some 120,000 m2 and is situated between the Isar river and the Englischer Garten, comprises 10 buildings, several of which are occupied by HVB. The German bank would seek to remain on site for another five years, according to Thomas Daily, in a sale and leaseback deal.

Other properties on the site include the five star Hilton Munich Park hotel and a significant sporting complex with swimming pool, gym and restaurant.

UniCredit has hired Merrill Lynch to oversee the sale, with interest already registered from German insurance giant Allianz and German investor Art-Invest. However, critics say that the asking price of between €1 bn - €1.2 bn is excessive, with the campus worth closer to €800 mln. This is partly due to the site's development restrictions and the presence of protected, historic buildings.

UniCredit CEO Jean Pierre Mustier has been pursuing a strategy to sell the bank's non-core properties in recent months, particularly in Germany, to strengthen UniCredit's capital ratios.


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