Tristan’s EPISO 3 Fund acquires landmark Karstadt building in Munich (DE)

European Property Investors Special Opportunities 3 (EPISO 3), an opportunity fund advised by pan-European real estate investment manager Tristan Capital Partners, has acquired the landmark Karstadt department store building opposite the main train station in central Munich in a joint venture with Signature Capital. All contractual parties agreed not to disclose the purchase price.
Since signing the purchase agreement, the joint venture has carried out substantial asset management initiatives which led to it securing a €130 mln investment loan from HSH Nordbank for a period of five years to finance the purchase. The 92,719 m² property is fully occupied by the Karstadt department store chain on a long lease.
The property comprises two connected parts. The first part is a prestigious seven storey building that opened in 1905 on Bahnhofplatz, opposite the central train station, originally as the Hermann Tietz department store. It is listed because of its historic interest and distinctive iconic corner tower and three-pointed gabled roof. The adjoining second part is a modern Karstadt department store dating back to 1971 and fronts onto the two streets that link the station to Munich’s famous Stachus square, or Karlsplatz. The modern section of the property consists of six floors and four levels of underground car parking with space for 497 vehicles.
Signature Capital, in addition to acting as co-investor, will advise the joint venture on asset management and other repositioning initiatives.
Source: Bellier Financial