Savills has advised pan-European fund Europa Direkt in the purchase of a 10,000 sq m office property at 7-13 Elsenheimerstraße in Munich-Laim for €25.3 million.
Savills has advised pan-European fund Europa Direkt in the purchase of a 10,000 sq m office property at 7-13 Elsenheimerstraße in Munich-Laim for €25.3 million. The transaction reflects a yield of 6.6% and is the fund’s first acquisition.
The six-storey property is located to the west of Munich city centre in an established office hub. It was built in 1995 with a major refurbishment of the entire building carried out in 2010. The asset is currently 97% let to 16 tenants including Barmer, Elly & Stoffel and Mouser Electronics.
Alexander Zahrt, associate director in the investment team at Savills in Germany, comments: ″This deal is evidence that there is growing interest and demand from investors for assets in secondary locations and it confirms Savills view that buyers are increasingly looking to make acquisitions at higher yields for greater returns. This strategically located modern asset has strong fundamentals with a stable cash flow, a diverse rental structure and good connections to the inner city boasting a combination hard to find in Munich.“
Alexander Zahrt heads a team at Savills Germany that is focused exclusively on value-add sales and acquisitions across the country in response to growing investor demand for such product. The team sits within the company’s wider commercial investment department in Germany.
Billfinger Real Estate Agroneo acted on behalf of the vendor.