The 40,234 sq. m office building included 1,108 sq. metres of terraces and is located in the established sub-market of Moosach, six kilometres to the north-west of downtown Munich, one of the most sought-after real estate markets in Europe. The nine-storey building was constructed in 2000 and at the time of acquisition was fully leased to multinational telecommunications company Telefonica.
The business plan was to convert the building to multi-tenant use upon obtaining vacant possession. A capital expenditure programme allowed for a full refurbishment of the office accommodation and included the opening of two new entrances, the replacement of some technical installations and the renovation of the restaurant and lobby area.
To capitalise on Munich office rental growth, a high specification refurbishment totalling €55.8 million was undertaken, including the construction of roof terraces, a new and remodelled restaurant, a double-storey lobby area with a coffee shop, conference facilities and high quality office interiors. This successfully repositioned the asset in the market as a core office building. We secured LEED Gold (Major refurbishment) sustainability accreditation and Wiredscore Platinum connectivity certification. After we successfully leased the building at rents significantly ahead of underwriting, the asset was sold in March 2022, producing returns which outperformed the underwrite, following an off-market approach from a Munich-based family office.