IVG Immobilien AG is purchasing two commercial properties in Munich for over 50 million. The properties are located in the city center and offer potential for development and rent increases. With the purchases, IVG is strengthening its real estate portfolio in one of the most stable and promising property markets in Germany in a targeted manner.
One of the properties has 15,000 m² of office space and over 100 parking spaces for cars. The property is equipped with state-of-the-art technology and is rented to tenants with good credit histories.
The second property, which has a rental area of 7,000 m² and about 50 parking spaces for cars, will be completed in spring 2006. 83% of the available space has already been rented, underlining the quality of the location.
Munich is currently one of the most attractive property markets in Germany. Science, high-tech, electronics, software, finance, media, tourism and fashion all complement each other to produce a solid economic base. After the difficult years until the middle of 2004, the stable rents and high sales of office space at present point to a recovery in the office market. Forecasts anticipate a considerable increase in rents over the next few years.