BlackRock buys Munich office

By James Buckley - Wednesday, September 13, 2017 11:50

BlackRock Real Assets has completed the acquisition of a 75,000 sq m 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 property sits within Munich’s inner city ‘Lower East Side’ sub-market, opposite the urban transformation area around the Munich East Station.

Thomas Müller, Portfolio Manager within BlackRock’s European Real Estate business, said: “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, added: “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. “

Freshfields and Drees & Sommer advised BlackRock on the transaction.

jbuckley@costar.co.uk

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