Blackstone to sell 680,000 sq ft Siemens campus

By James Buckley - Friday, October 13, 2017 15:03

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Blackstone has hired agents to sell a 680,000 sq ft office campus in Munich let to technology giant Siemens for €250m, CoStar News can reveal.

The US private equity firm has instructed CBRE and Colliers International to sell the East Site Offices estate, located at St.-Martin-Straße 76, 81541, Munich’s emerging factory district of Innenstadt Süd-Ost near the Ostbahnhof.

Siemens occupies around 50% of the 62,877 sq m (676,802 sq ft) of office space in the development, with the other half being vacant. Siemens used to own the building before selling it to IVG more than a decade ago for less than €100m. It now leases 332,206 sq ft in the property at a rent of €3.6m per annum on a lease which expires in February 2019, with the option of extending the lease for a further two years.

The upside potential for an investor would be to let the vacant space by way of a short term lease at market rents, which have shown a significant uptick in recent years.

Blackstone Real Estate Partners Europe IV took ownership of the building last year as part of its €3.3bn acquisition of OfficeFirst Immobilien AG, a an office-focused German real estate business owned by IVG Immobilien AG.

The former OfficeFirst portfolio extends to 1.4m square meters of predominantly office assets, the vast majority of which are located in Germany’s top six office markets – Munich, Berlin, Frankfurt, Hamburg, Dusseldorf, and Stuttgart.

Prior to the deal, Blackstone's office portfolio in Germany totalled almost 400,000 square meters across markets including Frankfurt, Berlin, Hamburg, Munich, and Dusseldorf.

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