GEG German Estate Group AG has acquired the "Junges Quartier Obersendling" located at 8-12 Schertlinstrasse in Munich, from a syndicate fund, managed by Morgan Stanley Real Estate Investing (MSREI) and Deutsche Immobilien Chancen Group, with a total investment of c.€170m. The acquisition was made for the open-ended "GEG Public Infrastructure 1" special fund, advised by GEG and managed by Hamburg-based Hanseatische Investment-GmbH, as AIFM.
The campus, which has total rentable space of some 45,000 m², is on long-term lease to the City of Munich, which is using the "Junges Quartier Obersendling" property as a model project for the joint education and training - as well as the integration - of young people with special needs, with or without a migrant background. Construction of the five separate campus buildings is underway for offices and administrative space, to be used by the City of Munich, childcare and youth facilities, several education and advanced training centres, as well as apartments. Approximately 45% of the space has been earmarked for training facilities, with around 30% for offices and administration space, and approximately 25% for residential use. Tenants will move into the first parts of the buildings during 2018, with the entire complex expected to be completed during the first half of 2019 at the latest.
Ulrich Höller, Chairman of the Management Board of GEG, said: "With the campus, we have developed, we acquired a top real estate investment for our new fund vehicle. 'Junges Quartier Obersendling' is a first-class model project where – together with the City of Munich – we are making a relevant, exemplary contribution towards improving the education and integration of young people – at the same time, the property will generate an attractive long-term return for our co-investors and ourselves, through the fund."
CMS and Drees & Sommer advised GEG. The sellers were advised by Nachmann Attorneys.
