Corestate Capital Holding has acquired an office building in Munich, Germany. The total investment volume is €66m. The deal signing has already been completed, with closing scheduled for the end of March 2019. The asset is expected to be repositioned using a “Manage-to-Core” strategy.
The office complex comprises a total leasable space of c. 13000m², of which roughly 75% is currently leased out to multiple individual tenants. The property offers far-ranging opportunities to create new long-term value. In addition to renovations and improvements to the existing structure, leasable space will be significantly expanded through the construction of a new multi-story office pavilion on an adjacent lot belonging to the property which is currently being used as a car park but already approved for development. The plan calls for all space to be fully leased out by the end of 2020, when all of these measures are scheduled for completion, with Aamundo Immobilien Gruppe serving as developer for the expansion and revitalisation project.
“Through the lease agreements which are already in place, the property is generating stable cash flow. Moreover, we see a number of opportunities to boost ongoing rental income. The investment thus offers, as a whole, an excellent starting point for further raising the property’s existing appreciation potential through our active management approach. We bring a long and proven track record in this area, and the interest among our clients for value-add products offering the potential for double-digit returns remains unabated”, said Thomas Landschreiber, co-founder and Chief Investment Officer of Corestate Capital Group.
