AXA IM - Real Asset has completed the acquisition, on behalf of clients, of a commercial development opportunity in Munich, Germany, from TREI, the real estate platform of the Tengelmann Group. The acquisition forms part of AXA IM - Real Assets’ strategy to invest in development opportunities in Tier one and growth cities across Europe, capitalising on individual market dynamics and timing.
The 14,100 m² site occupies a prime inner-fringe location on Landsberger Strasse, Western Munich, connecting directly to the Central Business District. It benefits from a highly visible location and excellent transport.
Demolition of the existing 34,300 m² buildings, let on short leases with low occupancy levels, is expected to commence in early 2019. The completed development will deliver up to 45,000 m² of flexible Grade-A office space across three buildings, suitable for a range of occupiers.
Established German developer FOM Real Estate will act as the development manager for the scheme.
Christian Heyn, Head of Development in Germany at AXA IM - Real Assets, commented: “We believe this major commercial development will deliver high-quality office space in what is a very supply-constrained Munich market. Our local team has identified a highly sought after and well-located inner-fringe location that offers potential significant upside through a development to hold strategy. The combination of our own development expertise with that of our partner means we are confident in the long-term return profile of this opportunity in what is one of Europe’s most dynamic fastest growing cities.”