TAG Immobilien AG sold a large office building in Munich with a total area of approx. 20,000 m², along with two other properties from its commercial portfolio.
The office building located in St.-Martin-Strasse in Munich-Giesing is fully leased until mid- 2017 and is part of a portfolio acquired from Siemens a few years ago. The property is to be repurposed in the long term. The buyer is a Munich project development company that will convert the property accordingly. Because a period of several years has been planned for the development, the contract closing is dependent on the success of the re-planning and cannot be expected before 2015. The purchase price was not disclosed.
TAG has also sold a former monastery in Oldenburg and a property in Cologne. The purchase prices were slightly higher than the book values.
Rolf Elgeti, CEO of TAG Immobilien AG, comments on the sales: "These sales have brought us another step forward in our plan to further reduce our commercial portfolio through selected sell-offs. Although the contract for St.-Martin-Strasse is subject to various closing conditions, we are pleased to have found experienced project developers who will convert the property for a new, future-oriented use. We will use the equity released through these sales to expand our residential portfolio."
Source: TAG Immobilien AG