Warburg-HIH Invest acquires Munich office building from M-CONCEPT
Warburg HIH-Invest Real Estate (Warburg-HIH Invest) is to acquire the Paseo Carré property development in Munich via a forward funding deal from builder and property developer M-CONCEPT Real Estate (M-CONCEPT).
Located at the corner of Offenbachstrasse and Landsberger Strasse, the office building, which has a gross floor area (GFA) of 7,600 square metres and 87 parking spots, is earmarked for an individual fund of the RVK pension scheme. The seven-storey property in the district of Pasing is already let to the City of Munich on a 20-year lease. The completion is scheduled for late 2012 or early 2022. The selling price has not been disclosed.
“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,” says Hans-Joachim Lehmann, Managing Director of Warburg-HIH Invest. “The newly completed building is characterised by modern and efficient rental units with a flexible layout structure. The pragmatic building structure permits both single-tenant and multi-tenant occupancy as well as the flexible arrangement of efficient rental units, including open-plan offices, private offices or combination offices.”
The Paseo Carré scheme is located within walking distance of the “Pasing” railway station, which offers everything from high-speed to commuter train services. The nearest tram stop is located directly in front of the building. In addition, M-CONCEPT is planning to develop another six buildings on this plot of around 8,500 square metres which faces Offenbachstrasse, Landsberger Strasse and a greened new esplanade. These will provide a total of 95 flats, three penthouses and 100 apartments for owner-occupiers and buy-to-let investors. For the apartment building, it is moreover planned to introduce a sharing concept that will include common-part areas and e-bikes. The apartments have already been reserved to 65 percent via exclusive pre-sales to existing customers.
“Pasing is one of the most interesting districts of Munich, with a sound infrastructure that is continuously expanded. An added highlight is its small-town flair, while the inner city of Munich is within easy reach at the same time. The swift package sale of our office units demonstrates that not just demand for residential accommodation is increasing here,” says Stefan Mayr, Managing Director of M-CONCEPT.
The planning consent for the quarter was issued in late September. The project will be implemented in four construction stages and start during the first quarter of 2020 with the excavation and timbering of the construction pit. Building construction work will begin in the second quarter of 2020.
The office building is slated for completion by the fourth quarter of 2021/first quarter 2022, while the completion of the entire building cluster is expected by 2022. Legal consulting to the seller was provided by the law firm LPA GGV legal tax in Munich, while Warburg-HIH Invest was advised by Ashurst LLP in Munich. Colliers International Deutschland helped M-CONCEPT to find a buyer and acted in an advisory role.