Europa Capital, the pan-European real estate investment manager, alongside its joint venture partner, Bayern Projekt, have sold the Olympia Business Center (OBC) in Munich, Germany, on behalf of its value-add fund, Europa Fund V.
Since acquiring the 38,000 m2 office building in 2017, Europa Capital and Bayern Projekt have undertaken an extensive refurbishment of the OBC.
This project led to the creation of roof terraces, a new restaurant/café, a double-storey lobby area, and the creation of a market hall concept for employees, which has been designed to foster co-eating and co-working.
The asset has since achieved a LEED Gold certification and a WiredScore Platinum certification, recognising its leading sustainability features, connectivity and digital infrastructure.
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.
'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.'
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 8,500 m2 which will take occupancy to 80% have also been agreed on long lease terms with three further occupiers, including a German provider of credit cards; a leading Japanese manufacturer in semi-conductor testing equipment; and a Munich based IT and business consulting company.
Other notable occupiers at the campus include DAIWA, the Japanese sports equipment manufacturer; Stadtwerke München, the municipal energy supply company; and the investigation Department of the Bavarian State Police Office.
