Allianz Real Estate Expands Portfolio With $239M Buy
- Mar 17, 2020
Allianz Real Estate has strengthened its presence in Germany with another major office acquisition. The German real estate investment and management company has purchased a building in Munich for €214 million, or nearly $239 million. The transaction, which is expected to close in the fourth quarter of the year, was a sale-leaseback deal with Bertelsmann, a German media conglomerate.
Located at Neumarkter Strasse 28 in the Berg am Laim neighborhood of Munich, the NM28 office building has 32,726 square meters (352,000 square feet) divided across two buildings connected by a two-story foyer.
The offices were built in the 1990s but remained in excellent condition due to the long-term occupancy of Bertelsmann and various new fit-outs through the last 20 years, according to Allianz. A company spokesperson told Commercial Property Executive that the acquisition was a “core investment” with no major upgrades planned at the time, but that Allianz would regularly make adjustments as necessary.
Annette Kroeger, CEO of Allianz Real Estate North & Central Europe, said the 2 percent vacancy rate of Munich’s office market has made way for the rise of new submarkets like Berg am Laim. The neighborhood is already home to many retailers, hotels and supermarkets, and has several projects in the pipeline, like the new office development New Eastside Munich and the mixed-use project Neo: Baumkirchen Mitte.
Allianz was advised by CMS Hasche Sigle, Arcadis, Westbridge, EY and BNP Real Estate in the transaction, while the seller was advised by HFK and CBRE.
Munich and beyond
The Munich-based Allianz has a history of purchasing offices in its hometown. In March 2018, Allianz purchased ATLAS, a 26,000-square-meter (280,000-square-foot) office building in Mittlerer Ring in Munich. A year prior, the company purchased Kap West, a 42,000-square-meter (452,000-square-foot) office project that was still under development at the time.
Outside Munich, Allianz has been investing in standout offices in the U.S. In June, the company paid $384 million to purchase a minority stake in 30 Hudson Yards, a new office building in New York City. Located a few hours away, the 1.2 million-square-foot office 53 State Street in Boston was acquired for $845 million by a joint venture between Allianz and Beacon Capital Partners.