, through its new value-add fund, has expanded its Munich office portfolio with the acquisition of two office buildings.
The global real estate fund manager鈥檚 Hines European Value Fund (HEVF) 2 fund has bought the two buildings comprising of over 87,000sqm of office space on Fritz-Sch盲ffer-Stra脽e 9 for an undisclosed sum.
The asset is currently fully let to Allianz.
Hines said it will design and seek building permits for a comprehensive refurbishment programme to transform the asset into an office-led, mixed-use scheme, including residential.
Paul White, HEVF 2 fund manager, said: 鈥淲e are delighted to have made a significant investment for HEVF 2 into the Munich office sector, a market we have been actively targeting for some time.鈥�
鈥淢unich benefits from some of the strongest office fundamentals in Europe today, with demand also exceeding available volume and quality of space in the residential sector.鈥�
Christian Meister, managing director for Hines Germany, said the office occupier market in Munich is exceptionally strong, and Fritz 9鈥檚 location makes it an attractive location for a sustainable office-led mixed-use campus.
鈥淲e will significantly improve and re-launch the Fritz 9 location and we will aim to attract a strong and vibrant tenant mix, Meister said.
鈥淎s always, we are determined to enhance the community in which the asset is located, and we are pleased to be a part of Munich鈥檚 exciting and dynamic market.鈥�
The HEVF 2 fund raised 鈧�637m at the first closing in December 2019, exceeding 50% of the 鈧�1.25bn total fund target. With leverage, the fund is expected to have a 鈧�3bn purchasing power.
The predecessor HEVF 1 fund raised 鈧�721m in August 2018.
