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German Commercial Investment:

German Commercial Property Investment Opportunity

Munich Property Fund

 


Investment Description

The Munich Property fund consists of 3 mixed-use commercial properties in Munich, Germany. The 6,387 sqm portfolio investment offers investors the opportunity to diversify risk across both retail & office sectors in the appealing German commercial market.

 

 

Location:

The selected commercial properties are very well located with 2 of the properties located in an upmarket residential district 13km south of the city centre and the other close to the city centre.

Munich is very well developed from a transportation point of view and includes a subway, local trains, bus service and 8 motorways. From an international perspective its airport is one of the busiest in Europe accommodating in excess of 30 million passengers annually while its is also served by a high speed train network that connects with leading German & European cities.


 

Local Economy:
Munich is capital of the renowned Bavarian region and is Germany’s 3rd largest city. The city itself has a population of 1.3m with a population of 2.6m in the greater metropolitan region.

The Bavarian region is one of Europe’s leading economic regions and Munich is characterised by a wealthy population with the highest purchasing power in Germany and the No.1 location for future economic prospects.


 

 


Financial Overview:

Total Acquisition Price: €30.66 million (inclusive of all costs)

Client Equity: €10.50 million

Bank Borrowings: €20.15 million

Gross Yield: 5.75% Net Yield: 5.08%



Tenants:

The main anchor tenants of the 3 properties include Deutsche Post (leading Germanv postal service – 70 million letters delivered each day), Allianz (one of the world’s leading insurers – 177,000 employees worldwide), Comax Consulting (business consultants) & Hypovereinsbank (2nd largest German bank). 

Property Breakdown:

 


 




Property 1 – Schloss Strasse, Grünwald, Munich

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  • Fully–let mixed use 4-storey property comprising of 2,626 sqm in letting space, 42 underground car parking spaces & 28 outdoor parking spaces
  • Existing anchor tenants are Deutsche Post AG, HypoVereinsbank & AAA Capital Holding
  • Various lease terms of between 1-7 years



  • Property 2 – Südliche Münchner Strasse, Grüwald, Munich
    
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  • Built in 2000 this property provides 1,402 sqm of retail and office space in one of Munich’s most affluent residential areas.
  • Existing anchor tenants are Comax Consulting
  • Existing lease terms of between 3-10 years



  • Property 3 – Nymphenburger Strasse, Grüwald, Munich
    
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    • Modern 2,357 sqm property completed in 2004/05 situated in one of downtown Munich’s most prominent retail & office districts. Easy access to Munich’s two main ring roads
    • Existing anchor tenants are Allianz Group, the global insurance blue chip insurance company
    • Existing lease terms of between 3-8 years



    Why Germany?

    Germany has the 3rd largest economy in the world behind the USA & Japan. Despite struggling in recent years the country’s economic base remains very strong as the economy continues to turn boosted by steady GDP growth and falling unemployment.  

    Key Investment Features:

    • Mixed-use properties offers intelligent investment diversification
    • Strong blue chip anchor tenants
    • Munich has strong economic background and a wealthy population
    • Competitive financing rates and strong yields makes this this investment very attractive to highly leverarged funding
    • Tax efficient investment structure



    Information Memorandum:

    To receive a detailed Information Memorandum on the investment opportunity please complete the following form and we will email you further details.  






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