Edmond de Rothschild REIM and BNP Paribas REIM Germany acquire Munich office asset for Real Value Fund

1st April 2020

Edmond de Rothschild Real Estate Investment Management and BNP Paribas Real Estate Investment Management Germany recently purchased an office property in Munich for the Real Value Fund. The property was built in 2002 and is located at Dessauerstraße 13 - 15 in the Moosach district in the northwest of Munich. The asset features just under 5,600 sqm of rental space and is almost fully let. The Real Value Fund is a German special real estate fund structured for institutional investors, which was jointly launched by BNP Paribas REIM Germany and Edmond de Rothschild REIM in 2015. The contracting parties have agreed not to disclose the purchase price and the name of the vendor.

The office property is situated close to the city centre in the immediate vicinity of the Olympia-Einkaufszentrum subway station with the Mittlerer Ring central ring road only 1 km away. The asset boasts a total of almost 5,600 sqm on four floors. The building also features 88 parking spaces on the basement level as well as a roof-top terrace. Access within the building is provided by two stairwells equipped with elevators, and the offices feature highly flexible layouts. Ceiling heights of 3.68 metres, a fully glazed facade and partial air-conditioning create a welcoming, friendly working environment. The property is almost fully let to four companies with a current average remaining lease term (WALT) of 5.7 years.

The Real Value Fund invests in commercial assets in Germany with value-add potential. The fund’s target volume was increased to €250m to meet ongoing demand from institutional investors for this investment strategy. Following this latest transaction, the fund will once again hold four assets in the wake of the recent sale of a property located in Düsseldorf. The fund manages the capital commitments of five institutional investors including two insurance companies, two pension funds and one savings bank. Fund performance in the previous fiscal year calculated according to the BVI method came to 13 per cent with an average 7.7 per cent per year since the fund was issued.