(MUNICH) – Hines, the international real estate firm, has successfully closed the acquisition of two office buildings located in Neuperlach, an established office, retail and residential destination in Munich on behalf of the flagship Hines European Value Fund 2 (HEVF 2).
Located next to Einkaufs-Center Neuperlach (PEP), Munich’s largest shopping mall, and with exceptional public transport links, the two office buildings comprise over 87,000 square meters of office space on Fritz-Schäffer-Straße 9. The asset is currently fully let to Allianz.
Hines will design and seek building permits for a comprehensive refurbishment program to transform the asset into a high-quality office-led, mixed-use scheme, including residential.
Paul White, HEVF 2 fund manager, said, “We are delighted to have made a significant investment for HEVF 2 into the Munich office sector, a market we have been actively targeting for some time. Munich benefits from some of the strongest office fundamentals in Europe today, with demand also exceeding available volume and quality of space in the residential sector. Hines has a global track record of placemaking, based on employing our deep local-level relationships and a strong ground team who will lead the project. We are really excited to get going and create something very special.”
Christian Meister, managing director for Hines Germany, said, “The office occupier market in Munich is exceptionally strong, and Fritz 9’s location in an established office submarket with excellent public transport links makes it an attractive location for a sustainable office-led mixed-use campus. Our project can meet local demand for high-quality spaces to work as well as to live, surrounded by great architecture. We will significantly improve and re-launch the Fritz 9 location and we will aim to attract a strong and vibrant tenant mix. As always, we are determined to enhance the community in which the asset is located, and we are pleased to be a part of Munich’s exciting and dynamic market.”
HEVF 2 was launched in September 2019 following full investment of commitments in Hines European Value Fund (HEVF 1), a core plus/value-add fund for which Hines raised €721 million of equity commitments in closings from July 2017 to August 2018, exceeding the original fund target size by over 40%. HEVF2 secured €637 million of investor commitments of the €1.25 billion value add fund at first closing in January 2020, with subsequent closures expected to take place throughout 2020.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management, including $63.8 billion for which Hines provides fiduciary investment management services, and $60.5 billion for which Hines provides third-party property-level services. The firm has 148 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,362 properties, totaling over 449 million square feet. The firm’s current property and asset management portfolio includes 514 properties, representing over 222 million square feet. Visit www.hines.com for more information.
With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 47 cities in 12 countries, with €18.2 billion of assets under management in Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.