Ardian Real Estate Sells Munich Office Campus
- Mar 03, 2020
Ardian Real Estate has sold the Konrad office complex, its first investment in a German market. A 50-50 joint venture of Union Investment and Hansainvest has purchased the office complex in Munich for an undisclosed price.
Located at Konrad-Zuse-Platz 2-12, the 34,000-square-meter (approximately 366,000-square-foot) office complex comprises 10 buildings that surround a courtyard garden and 544 parking spaces. The French investment company purchased Konrad approximately three years ago as their first investment in the German market. When acquired, the property was previously known as the Wappenhalle office complex due to the history of one of its buildings from 1939 that was previously part of the Munich-Riem Airport. While the airport closed in 1992, the Wappenhalle building remained and was refurbished in 2002.
When Ardian purchased the office complex in 2017, the company already had plans to reposition and rebrand the property into Konrad. Ardian spent tens of millions of euros for a major renovation that included redesigning the two entrance areas, modernizing the facade and interiors and upgrading the garden and courtyard. In September, a modern dining area was created and is operated by Leonardi. While Ardian completed extensive renovations on the property, the Wappenhalle building is still being used with its previous purpose for galas, trade fairs, exhibitions and conferences.
The renovations paid off as the office complex hit 100 percent occupancy in 2019, hosting 30 tenants with long-term leases. According to Ardian, some of the tenants include French consultancy Capgemini, appliance manufacturer Candy Haier and Hitachi. Konrad’s weighted average lease term is approximately six years.
Growing German portfolio
In another German city, Ardian is also growing its portfolio. In December 2018, the company partnered with a private investor to acquire a 322,917-square-foot office complex in Berlin. That purchase came just three months after Ardian bought another 135,600-square-foot office complex in Berlin from Conren Land AG.