InfraRed Capital Partners Limited (“InfraRed”), on behalf of its Active Fund III, has completed the sale of the ‘Leitwerk’ office complex in Munich to the Real I.S. Group (“Real I.S.”) for over €130 million.
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 c.40,000 sqm of lettable space. InfraRed acquired the asset in November 2013 with a vacancy rate in excess of 35%. The office building, now fully let, has been acquired by Real I.S. on behalf of two of its institutional funds.
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 c.7 years.
Joram Szerkowski, responsible for real estate investments in Germany at InfraRed, commented:
“We are very pleased to have completed the sale of the Leitwerk complex to Real I.S. Having implemented an intensive “manage-to-core” strategy, we have created a fully-let, core office investment in an attractive, growing micro-location. Thanks to Real I.S.’ high level of professionalism and reliability we were able to close the transaction within an unusually short timeframe.”
Jochen Schenk, member of the board of management of Real I.S., commented on the acquisition:
“Through its strong occupier profile, sustainable profitability and the excellent location within Munich, the property is ideally suited to our investment strategy, whilst fulfilling the high quality criteria of the institutional funds.”
InfraRed were advised by Orrick, Herrington & Sutcliffe and CBRE. Clifford Chance acted for Real I.S.