German investment manager Real I.S. has acquired the fully let Leitwerk office complex for two of its institutional investment funds for an undisclosed amount.
German investment manager Real I.S. has acquired the fully let Leitwerk office complex for two of its institutional investment funds for an undisclosed amount.
The vendor is Infrared Capital Partners, a value-add property and infrastructure spin-out from British bank HSBC, acting on behalf of its Active Fund III.
The Leitwerk is situated on Haidenauplatz in close proximity to Munich’s second largest train station, the Ostbahnhof, and the Central Business District. The building was constructed in 2000 and comprises 40,000 m2 of lettable space.
InfraRed acquired the asset in November 2013 with a vacancy rate in excess of 35%.
The building is multi-let with 85% of the space let to public sector and healthcare institutions. Tenants include the Bavarian State Ministry of Health and Care and the German Patent Office. The weighted average lease length across the building is seven years.
Clifford Chance acted for Real I.S. InfraRed were advised by Orrick, Herrington & Sutcliffe and CBRE.
In May, InfraRed also bought a 25,000 m2 office scheme in the east of the German city. Built in 1982, the building is only 50% occupied with a weighted average lease term of 1.5 years.
InfraRed said it will seek further investments in Munich. 'Making repeat investments in select target markets has been a very effective way for us to source attractive opportunities. The Munich office sector is one of these markets,' Infrared's Andreas Katsaros said.
