Swiss Life Asset Managers (Swiss Life AM) and private equity real estate platform Henderson Park have agreed terms to acquire an office complex in Munich for about €400 million.
The Kustermann Park complex comprises of 74,000 sqm of office space across two buildings and 889 parking spaces.
Both firms have acquired one building each, with Swiss Life AM acquiring Brinell Haus, a 32,000 sqm fully-leased property with a weighted average lease term of 14 years. The City of Munich will occupy 40% of the asset, following a 20-year lease for the building.
Both firms have identified Munich as a key investment market characterised by strong growth driven by high tenant demand and record low vacancy, they said.
“Given low vacancy rates, it can be difficult for investors to gain exposure to the Munich office market,” said Maureen Mahr von Staszewski, senior pan-European fund manager at Swiss Life AM.
A recent report by UBS Asset Management found that demand for property was high across most locations in Europe, as were vacancy rates.
©2019 funds europe