Immobilien Europa Direkt, an investment group of Zurich Investment Foundation, managed and codistributed by Schroder Property Investment Management, has completed the acquisition of a multi-let office building in Elsenheimerstraße, Munich.
The property was acquired for €25.3 million at an initial yield of 6.6%. The asset is located in the western part of the city and has good access to public transport and excellent communication to Munich city center. Built in 1995 and modernized in 2010, the asset provides in excess of 10,000 sqm modern office space over six floors. The property is let to 16 tenants and has an average unexpired lease term of over six years.
Tony Smedley, Head of Pan European Funds, Schroder Property commented: “We are pleased to have completed the first acquisition for Immobilien Europa Direkt following the recent closing with equity totalling €169.3 million.
The Munich asset is in line with our strategy, it delivers the investment objective and provides long-term growth prospects being let at rents one third of prime”. Immobilien Europa Direkt, a Euro denominated fund, was launched by Zurich Investment Foundation and has been designed specifically for Swiss pension schemes. Its investment strategy is focused on providing investors with a diversified portfolio of commercial real estate in the main western European markets.