Barings Buys Office Complex in Munich From Conren Land
Barings, one of the world’s largest diversified real estate investment managers, has acquired the Machtlfinger Hoefe office complex in Munich, southern Germany. The asset was acquired in an off-market deal from CONREN Land AG. The parties agreed to keep the purchase price confidential.
The office complex in the Obersendling district encompasses around 21,800 m² of rental space across three buildings. Built in 2003, the asset offers flexible and high-quality office spaces and is nearly fully occupied.
Machtlfinger Hoefe is located southwest of Munich’s city centre. It has easy access to the city’s local train network via the directly adjacent underground station Machtlfinger Strasse. The location is set to profit in the medium-term from several new office and urban quarter developments nearby, including the redevelopment of the Ratzingerplatz square and the construction of a new tramline, adding to the institutional character of the asset.
“With over 20 tenants in the property, we have a very diversified income stream and at the same time significant value-add potential through new leases and extensions over the next ten years. Additionally, we are exploring technical optimisation and will implement measures to receive a sustainability certification for the building. It is also located close to the DIE ZENTRALE office building, which we acquired in 2018 as part of our value-add strategy and have since successfully repositioned,” says Sascha Becker, Country Head Germany at Barings.
Gunther Deutsch, Head of Real Estate Transactions – Europe at Barings, adds: “This transaction is our fourth office deal in Europe this year, following the acquisition of a property in Stockholm, a development in Italy and a German office portfolio. It underlines our continued conviction in office assets that are high quality and in excellent locations, which meet our investment criteria.”
BNP Paribas Real Estate advised on the transaction on behalf of Barings, as well as Linklaters (legal) and TA Europe (technical due diligence). The financing partner is pbb Deutsche Pfandbriefbank AG.
Gerhard Meitinger, Head of Real Estate Finance Germany at pbb, commented: “We are confident in the success of this attractive office asset and are proud to provide financing. The property is well located to benefit from its close proximity to an urban quarter development. We are pleased to be expanding our pan-European business relationship with Barings in Germany.”
Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. BRE also specializes in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.
Barings is a $354+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*As of September 30, 2020