German asset manager Warburg HIH-Invest Real Estate has inked a forward-funding deal for an office property in Munich with German builder and property developer M-Concept Real Estate.
Financial details were not disclosed.
The new seven-storey asset, dubbed Paseo Carré, is located at the corner of Offenbachstrasse and Landsberger Strasse, and will have a gross floor area of 7,600 m2, plus 87 parking spots.
The development has been earmarked for an individual fund of the RVK pension scheme, and has already been let to the City of Munich on a 20-year lease. Completion is scheduled for late 2021 or early 2022.
'By acquiring the Paseo Carré, we seized an opportunity to secure a very long-term lease with a blue-chip tenant in an established sub-market of Munich,' said Hans-Joachim Lehmann, managing director of Warburg-HIH Invest.
'Pasing is one of the most interesting districts of Munich, with a sound infrastructure that is continuously expanding,' added Stefan Mayr, managing director of M-Concept.
M-Concept is also planning to develop another six buildings on this plot of around 8,500 m2, providing a total of 95 flats, three penthouses and 100 apartments for owner-occupiers and buy-to-let investors. The apartments have already been 65% reserved via pre-sales to existing customers.
Law firm LPA GGV legal tax advised the seller, while Warburg-HIH Invest was advised by Ashurst LLP.
Colliers International Deutschland helped M-Concept find a buyer and acted in an advisory role.