Patron Capital and co-investor Pamera Asset Management have acquired a five-storey office building in Munich. This is the second acquisition of Patron’s Fund IV in Germany and Patron plans to invest significant capital in further opportunistic and value-add transactions across Germany over the next two years.
Located in Munich’s sought-after Westend and with direct access to the S-Bahn and underground system, Ridlerstrasse 55 comprises 11,200 m² of lettable space across flexible floorplates. Acquired from Deutsche Asset & Wealth Management, it is situated on a 5,055 m² site and has 147 car parking spaces.
The acquisition was funded with equity and senior bank financing provided by HSH Nordbank; Savills advised the seller on the transaction.
Commenting on the acquisition, Keith Breslauer, Managing Director at Patron Capital, said: “This acquisition is part of our previously stated intention to invest substantial capital in German-speaking countries, where we see significant opportunities for growth. This building is well located and we are confident that, with strong asset management and a refurbishment programme, we will be able to attract new tenants and deliver a solid return on our investment. We continue to seek out opportunities in Germany and look forward to announcing further deals.”
Gunther Deutsch, Managing Partner at Pamera, added: “This was a great opportunity to purchase a well-located building with tenants including Hermann-Gmeiner-Fonds, multiple educational institutions and IT companies. Due to a recent relocation the property currently shows a vacancy of 40 per cent and the building will now be repositioned by PAMERA’s asset management team. We expect to re-gear the existing leases and to lease the vacant space in the near future.”
Peter Axmann, Head of Real Estate Clients at HSH Nordbank, said: “Beyond our home market of Hamburg and Schleswig-Holstein we focus our activities on real estate finance in German metropolitan regions such as Munich. We provide assistance not only to our German clients but also to investors from abroad wishing to invest in the German markets. We are very pleased to have worked with Patron Capital and Pamera, who are both experienced players in the real estate market, on this transaction.”
Source: Patron Capital