Allianz has purchased the 26,000 sqm ATLAS office building, situated in the emerging office cluster Werksviertel within the Mittlerer Ring in Munich. The purchase is structured as a forward deal and was executed by Allianz Real Estate. The asset has been acquired from German-based real estate investment firm Art-Invest Real Estate.
The acquisition expands Allianz Real Estate’s core office strategy in Europe, which targets quality office buildings in high-demand, prime city locations with a minimum 10-year investment term.
Copyright: Art-Invest Real Estate Management GmbH & Co. KG und Christoph Pforr Fotografie.
ATLAS comprises a landmark 14-storey tower, which is currently undergoing a complete refurbishment: it will also be extended with a newly constructed annex and parking facility, with a completion date of Q2 2019, when the closing of the deal takes place. The work includes a new, distinctive façade and several roof terraces. Some 92% of total space is already pre-leased to three tenants, led by Publicis Groupe.
The ATLAS office building is located close to the Ostbahnhof in the Werksviertel district. It is also one of the city’s last large office development areas inside the Mittlerer Ring. Significantly, the area is proving very attractive for creative and digital companies. The area is benefitting from an infux of technology start-ups.
“The ATLAS deal underlines our strategy to expand our office portfolio in prime locations in Tier 1 European cities. The Werksviertel district has become a sought-after business hub in Munich and we believe demand will escalate given the fundamentals driving the local market,” said Annette Kröger, CEO North & Central Europe at Allianz Real Estate.
“To date, Allianz Real Estate has not invested in this district and, as such, this acquisition delivers compelling diversification benefits to Allianz’s office portfolio in Munich.”
The acquisition of the ATLAS complex builds on a number of recent deals in Munich by Allianz Real Estate, including the purchase of the office project development Kap West on behalf of various Allianz companies, announced in March last year.
Allianz was advised by Clifford Chance, EY, Colliers and CBRE Preuss Valteq during this transaction, Art-Invest by GSK Stockmann and BNP Paribas Real Estate.