AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe, announces that it has completed the acquisition of a centrally located Munich office building (“MARTIN I & II”), on the corner of St. Martin-Str and Balanstr., on behalf of a large US pension fund client. The building will benefit from steady long-term income through a public authority tenant as well as significant upside potential through the upcoming refurbishment of the remaining building in 2018.
Built in 1980, the complex totals 22,269m², with 368 parking spaces, comprising a shared ground floor and two individual buildings parts; MARTIN I comprises 10,439m² on six floors and is fully let to a public authority tenant on a long term lease. MARTIN II is nine floors, totalling 11,720m² and is currently let until the end of 2017 to a global electronics manufacturer.
The asset is strategically located in central Munich, adjacent to Neue Balan and the Werksviertel area. The location is undergoing significant regeneration and offers excellent transport connectivity, just a short walk from Munich’s second largest railway station, the München Ost.
The transaction adds to AXA IM - Real Assets’ portfolio of Munich assets, which include the 4,864m² Twenty 8 office building, a prime office asset on 1 Lenbachplatz which is currently undergoing a refurbishment and the mixed-use, multi-tenant Elisenhof office complex, all located in the City Centre.
Matthias Leube, Regional Head of Asset Management & Transactions at AXA IM - Real Assets in Germany, commented: “This acquisition forms part of our strategy to acquire assets for refurbishment and plots for ground up development in prime locations within Germany. The commercial real-estate market in Munich has, along with other German key markets, shown an increasing level of attraction to global institutional investors. We expect this trend to continue and to further enable AXA IM - Real Assets to extract significant value, also from this specific building.”
