CDC Investissement Immobilier, on behalf of French Caisse des Depots, and FOM Real Estate have recently signed, in a joint venture (CDC 90% / FOM Real Estate 10%), the acquisition of an office building located in the centre of Munich. The property comprises approximately 4,500m² located along Sonnenstrasse, the boulevard along Munich's old town, close to the transport hubs of Sendlinger Tor, Karlsplatz and the main train station. This asset, which is still partially leased, will be completely refurbished to offer a product of the latest standards, particularly in environmental terms, and to meet the high demand for this type of product in the centre of Munich. FOM Real Estate, operating partner in the deal, will be responsible for the refurbishment and asset management of the asset.
This is the first direct transaction in Germany for CDC Investissement Immobilier, whose international investment strategy focuses on the German “top 7”, London and the other major cities of Western Europe.
Arnaud Taverne, CEO of CDC Investissement Immobilier, commented: "We are pleased to carry out this first transaction in Germany. We have done there an extensive work over the last few years, in a highly competitive environment, allowing us to seize this opportunity after a rapid readjustment of the German market as interest rates rose and funding dried up. We intend to take advantage of this more favourable environment for long-term full equity investors to develop our German portfolio with further transactions.” Lucas Mignot, Head of International Investments at CDC Investissement Immobilier, comments: “We are pleased with this first deal in Germany, particularly in the centre of Munich, one of our favourite markets. We are looking forward, together with our local operating partner FOM Real Estate, to deploying our build-to-core strategy and creating an asset with the latest standards, specifications which, coupled with a central location and ideal transport links, will make it a very attractive product in the market.”
Reinhard Walter, Managing Partner of FOM Real Estate Gruppe, commented: ”The acquisition is a great sign in times of a stressed real estate market. Once all refurbishment measures have been completed, the building will offer high-quality office space in line with current ESG and New Work standards - and in a prime central Munich location with excellent public transport links. Furthermore, the purchase is once again an excellent example of the outstanding cooperation with our co-shareholder BRAWO Group. We are very pleased to have gained such an important international investor and to have enabled him to enter the German market. For us, this is the start of a fruitful relationship with CDC Investissement Immobilier. Our thanks go to all those involved in the realization.”
