AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe, announces the acquisition of Taunushaus, an office building in Munich’s Milbershofen business district. This is the first acquisition to be made on behalf of the Hadrian fund, an Italian regulated fund.
The Taunushaus office asset comprises 11,200m² of space spread across six storeys with flexible layout options that allow for customised individual unit sizes. The underground car park can accommodate more than 60 cars with a further 70 parking spaces situated above ground. The office is currently fully let to a number of leading German businesses on long leases, with a prominent telecommunications company representing the lead tenant.
Munich remains one of Europe’s most attractive business locations, with a diverse mix of large corporations, SMEs and small start-ups operating across a wide range of industries including IT, environmental technology, medical engineering, aerospace and automotive engineering. Munich is one of the country’s primary centres of employment, boasting a low unemployment rate of 4.3%.
The Hadrian Fund is an Italian closed-ended pan-European regulated fund aimed at generating stable returns by acquiring and actively managing good quality office and retail assets. The fund’s target equity size is €200m, of which €146m has already been raised. The fund raising process is due to close in May 2017. With selective leverage, the fund size is targeted to increase total investable funds to €400m. The Taunushaus asset represents its first investment.
Matthias Leube, Regional Head of Asset Management & Transactions at AXA IM - Real Assets in Germany, commented: “This acquisition further underpins our conviction in the strength of the Munich real estate market, illustrated by our sequence of recent acquisitions within this leading city. In order to further capitalise on the growth and the resilience of the Munich office market, we will look to deploy a number of asset management initiatives to create the upmost value for our investor clients.”
