Norges Bank Investment Management (NBIM), which manages the Norwegian Government Pension Fund Global, has acquired the majority of shares in the companies owning two office buildings in the Lenbach Gärten quarter in Munich from AM ALPHA, the leading European Multi Family Office for Real Estate, for a total consideration of €176.1 million, including €75 million of third-party debt.
The minority stake of the shares has been sold to a co-investment vehicle, advised by AM ALPHA.
AM ALPHA will manage the co-investment fund, which is intended to acquire further stakes in German real estate investments.
The two office properties near the Old Botanic Garden between Sophien- and Karlstrasse have been developed in 2007 and comprise 29,000 m² of total leasable area, mostly represented by office usage. The two buildings are primarily leased to McKinsey & Company Inc. and Condé Nast Verlag GmbH.
Siegmut Boehm, Managing Director of AM ALPHA, says: “We had overwhelming interest when we started the bidding process for Lenbach Gärten, from both international and domestic investors, and we are glad to have chosen a top financial institution like Norges Bank Investment Management as an investor for our prime properties. We will continue to leverage on our network and local market knowledge across Europe and major gateway cities in Asia, to unlock value for our investors.”
The deal marks another milestone of AM ALPHA’s investment strategy and is increasing AM ALPHA’s European transaction volume for the current year to more than €510 million.
Source: Norges Bank