Invesco Real Estate has acquired Hufelandstrasse, a 20,600m² office and light industrial complex in the north of Munich. It is currently 100% leased to one investment grade tenant, one of Germany’s largest industrial companies.
Hufelandstrasse complex comprises three high-quality buildings offering a wide range of potential uses including a modern four-storey office building, flexible spaces for workshop and construction uses and a parking garage. The site is easily accessible by private and public transport, with Munich city centre less being than 15 minutes away by car.
The property is located in Milbertshofen, a strongly developing submarket in Munich where the average annual take-up is more than nine times higher than current vacancy. These high levels of demand lend the Hufelandstrasse complex further upside potential as a significant rent reversion is anticipated.
“We have a very strong track record of active ownership, having acquired several office buildings in Munich over the years. Completing this promising off-market transaction is further testament to our local market expertise and network,” said Fabian Manegold, Senior Director – Transactions for Germany, Austria and The Netherlands at Invesco. “We know the Munich market very well and the area is particularly interesting as there is effectively no structural vacancy in the surrounding area due to high demand, particularly from tech and engineering companies - even older stock buildings with sub-par quality are fully rented.“
“The long term value creation potential creates a significant upside potential for the asset, whilst providing downside protection as well – a convincing combination. Due to the fact that the asset is 100% and long-term let to an investment grade tenant, one of Germany’s largest industrial companies, the investment offers a secure and attractive income profile for our mandate with comparable high-income returns for the Munich market,“ adds Oliver Egle, Associate Director – Fund Management at Invesco.
