Investcorp acquires Munich office complex for EUR73 million
Investcorp has acquired a multi-let office complex – The Sunrise – in Munich, Germany for approximately EUR73 million.
Built in 1993 and refurbished in 2017, Sunrise is an approximate 30,000 sq m office complex comprised of four buildings, of which three are interconnected. The property is currently 90 per cent leased to a diversified tenant base with approximately six years of contractual, weighted average term remaining under the leases.
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 per cent and prime office rents have increased by approximately 3 per cent per annum on average since 2012. The property is well-connected via transport links and roadways to Munich’s city centre and offers a canteen and a gym.
“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,” says 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.
“We are pleased with the progress we are making to expand our real estate portfolio across geographies. 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 EUR700 million of which EUR400m is located in Germany across five assets in the country’s top seven cities.