Catella Real Estate AG sells the 6,704m² educational property Claudius-Keller-Str. 7 on the Neue Balan campus in Munich for the Catella MAX public fund to the NEXT Generation Invest AG educational fund
The Neue Balan campus is a modern office campus with around 200,000m² of rental space that places a strong emphasis on sustainability. Numerous companies are located on the site, as well as shopping facilities, a fitness studio and a publicly accessible 50 m pool, which ensures an extremely high quality of stay on campus, which is highly valued by tenants such as Meta and Accenture.
The office building, which was constructed in 1956, underwent significant renovations as part of the campus development in 2010. It was specifically expanded to accommodate university and school operations. In 2017, Catella Real Estate AG added a high-quality additional storey, increasing the property's total area to 6,704m² spread across five floors. As a result of this expansion, Catella successfully secured long-term leases with two educational institutions, namely the Munich Adult Education Center and the IU (International University).
Lukas Deubzer, Senior Investment Manager at CREAG, said: “During our holding period of around ten years, the location has developed extraordinarily positively. By adding a storey and re-letting it to two renowned tenants, we were able to significantly increase the value of the asset and ensure a stable long-term cash flow. After the comprehensive repositioning from a single to a multi-tenant property, we were now able to successfully sell the property and, in a challenging market environment, realize the increase in value through the measures implemented in recent years."
Fabian Herrmann, portfolio manager at CREAG, said: "After achieving very good ongoing returns for our investors with this property over the years and realizing further potential through the extension in 2017, we have now decided to shift our focus to new investment opportunities."
"By taking over this property, we are also focusing on a long-term impact. The proximity of the shared use by the International University and the Adult Education Center creates a dynamic environment that promotes intercultural exchange. The modern campus infrastructure offers an optimal learning and research environment and creates space for informal encounters and creative collaboration," said Tanja Volksheimer, Head of Fund Management at NEXT Generation Invest AG.
Catella Real Estate AG received legal advice on the transaction from DLA Piper, while tax advice was provided by WTS and technical sales preparation including ESG review was carried out by BRAND BERGER real estate consulting. NEXT Generation Invest AG received legal and tax advice from Fieldfisher. The property was marketed under a co-mandate by BNP Paribas Real Estate and Cushman & Wakefield.
Image source - Pexels.
