Europa Capital, acting alongside its joint venture partner Bayern Projekt, has sold the Olympia Business Centre (the OBC), a 38,000m² office building in Munich, Germany.
Since acquiring the asset in 2017, Europa Capital and Bayern Projekt have undertaken an extensive refurbishment of the OBC, which achieved a LEED Gold certification and a WiredScore Platinum certification, recognising its leading sustainability features, connectivity and digital infrastructure. This project led to the creation of roof terraces, a new restaurant/café, a double-storey lobby area, and the creation of a “Markthalle” (market hall) concept for employees, which has been designed to foster co-eating and co-working.
During the refurbishment Europa Capital and Bayern Projekt agreed a number of key leases at the OBC, which is currently 60% occupied. Recent lettings totalling 8,500m² which will take occupancy to 80% have also been agreed on long lease terms with three further occupiers, including a leading German provider of credit cards; a leading Japanese manufacturer in semi-conductor testing equipment; and a Munich based IT and business consulting company.
Situated in Munich's Moosach district, the OBC is in a strong business location with many large international businesses in the immediate vicinity. The asset is also well connected, providing access to the Georg Brauchle-Ring road and a number of U-Bahn train stations.
Jason Oram, Partner & Fund Manager at Europa Capital, commented: “This sale during a time of ongoing debate surrounding the future of the office reinforces our conviction in the future of well-located offices. We saw an opportunity to benefit from the substantial rental growth in Munich and, to capitalise on this growth, a higher specification of refurbishment was completed to target new occupiers and increase the building’s occupancy. The high-quality design and flexibility at this property is a testament to our asset management team, and the continuation of positive leasing momentum reinforces the strong sentiment for core offices across Europe’s major cities. Therefore, it is now the optimum time for the Fund to dispose of the OBC, in line with its business plan to deliver attractive returns for our investors which outperformed the original underwrite.”
