GEG German Estate Group AG makes market entry with property investments of €160 mln (DE)

GEG German Estate Group AG completed its first major transactions by acquiring two big-ticket real property assets in Munich: one being the property Sapporobogen acquired for its ‘landmark core’ business line, the other being the Neue Pasinger Mitte project with its attractive development potential that was acquired for the business line 'opportunistic investments.' The investment volume totals approximately €160 mln.
With the Sapporobogen office building, GEG acquired a high-end commercial property from Württembergische Lebensversicherung AG, a Stuttgart-based insurance company: The office complex is located north-west of downtown Munich, right across from the Olympic Park, with a GLA of approx. 27,500 m² on 11 floors. The building is almost fully let, while the average remaining lease term is around six years. The building cluster was comprehensively modernised in 2012. The investment volume of the complex of buildings comes to approximately €90 mln. The estate agency brokering the transaction was CBRE. Legal counsel to the buyer side was provided by GSK Stockmann + Kollegen.
The property development Neue Pasinger Mitte at Bäckerstrasse in the Munich City district Pasing includes a medical centre, a tower block, and a retail building complex along with a vacant plot yet to be developed. A local development plan for the entire estate has already been finalised. The medical centre and the rental building complex are to be redeveloped and revitalised, while the retail building complex will be rebuilt. In addition to 80 new residential units, the development will create highly attractive new retail units directly across from the well-established Pasing Arcaden shopping centre whose catchment area extends successfully beyond the Munich city limits and in the immediate vicinity of the Pasing railway station. Construction work is scheduled to start in the autumn of 2016, and is expected to take around two years to complete. After construction and revitalisation will have been completed the usable floor space will be more than 11,000 m².
The property and the associated property development were sold by DIC Asset AG as the company intends to focus on the management of existing properties in the future. The investment volume of this acquisition comes to approximately €70 mln. The transaction is being financed by BayernLB. It was facilitated on the buyer side by McDermott Will & Emery.
Source: GEG German Estate Group AG