BlackRock Real Assets acquires Munich office building
BlackRock Real Assets has completed the acquisition of a 75,000 square metres office complex in Munich, Germany. The investment represents the tenth acquisition for BlackRock Real Estate’s European value-add strategy. The price is undisclosed.
The complex of seven buildings across two interconnected plots enjoys a variety of additional amenities, including a directly accessible public park, a spacious underground car park, a canteen with conference area, a café, and two childcare centres. The property is strategically located within Munich’s inner city ‘Lower East Side’ sub-market, opposite the sought after urban transformation area around the Munich East Station. The sub-market is attractive to occupiers and investors alike as a result of its urban feel, mix of residential, retail and office properties, and accessibility to the central business district.
Thomas Müller, Portfolio Manager within BlackRock’s European Real Estate business, says: “We are very pleased to announce this latest acquisition in the German market. The investment is in line with our European value-add strategy to invest in office properties with a repositioning angle and optionality in liquid markets with strong fundamentals and rental growth prospects.”
Wolfgang Koedel, Director within BlackRock’s German Real Estate business, adds: “Munich is a key market within the German investment strategy, and the Munich office market faces a significant supply-demand imbalance, with vacancy in the inner city at historic lows, a limited and largely pre-let supply pipeline, and strong demand from a diversified occupier base. We believe in the sustainability of inner city locations, as occupiers are increasingly looking for such positioning to maintain talent. This investment will benefit from further positive momentum through urban developments in the submarket.
This latest acquisition follows news of the acquisition of an office building in Hamburg and the sale of the strategy’s first investment in Munich, Germany.
BlackRock Real Estate is the dedicated real estate investment group within BlackRock Real Assets and invests in strategies across the risk and return spectrum, providing access to all major property types. The business manages over $20 billion of private and public real estate equity and debt on behalf of investors worldwide in 17 offices across 11 countries in Asia-Pacific, Europe and the US.
Freshfields and Drees & Sommer advised BlackRock on the transaction.