CDC Investissement Immobilier and FOM Invest GmbH acquire office property in the center of Munich
- Existing building offers around 4,500 square meters of gross floor space
- Acquisition also marks market entry in Germany for French CDC Investissement Immobilier
- Extensive revitalization and expansion measures planned
Heidelberg/Munich/Paris, May 25, 2023 - CDC Investissement Immobilier, on behalf of the French Caisse des Dépôts (CDC), has notarized the purchase of an approximately 4,500-square-meter office property in a joint venture with FOM Real Estate Group ("FOM Group"). FOM Group has been successfully active as a project developer and asset manager for over 25 years and as a fund manager since 2020; Volksbank eG Braunschweig Wolfsburg ("Volksbank BraWo") and its group of companies, BRAWO GROUP, have also been strategic partners since March 2023. CDC holds 90 percent of the shares, FOM and BRAWO 10 percent. The purchase also means market entry in Germany for CDC. The building is located at Sonnenstraße 24, between Karlsplatz ("Stachus") and Sendlinger Tor. In the immediate vicinity is the Isarklinikum Munich, an internationally renowned private clinic. The seller of the office building from the 1950s is Isar Kliniken GmbH. Comprehensive revitalization and expansion measures are planned in accordance with a Manage to ESG approach. These will be carried out by the FOM Group as an operating partner, from planning and development to asset management. CDC is pursuing a long-term investment with the purchase.
Arnaud Taverne, CEO of CDC Investissement Immobilier, comments: "We are delighted to be able to carry out this first transaction in Germany. The German market currently offers good investment opportunities due to rising interest rates and tightening financial resources, so we are now taking this opportunity to enter the market. We intend to take advantage of this more favorable environment for long-term full equity investors to expand our German portfolio with further transactions."
Lucas Mignot, Head of International Investments at CDC Investissement Immobilier, commented, "Munich is one of our preferred markets, so we are particularly excited about this first transaction in Germany in the center of the Bavarian capital. We look forward to working with our local partner FOM Real Estate to implement our build-to-core strategy and create a property with state-of-the-art standards that, combined with its central location and ideal transport links, will be a very attractive product on the market."
Prof. Reinhard Walter, Managing Partner of FOM Real Estate Group, says: "The purchase is a great sign in times of a stressed real estate market. Once all revitalization measures have been completed, the building will offer high-quality office space in line with current ESG and New Work standards - and in a prime Munich city center location with outstanding public transport connections. In addition, the purchase is once again an excellent example of the outstanding interaction with our co-shareholder BRAWO Group."
Andreas Stegmann, Head Institutional Clients & Products of the FOM Real Estate Group, adds: "We are very pleased to have gained such an important international investor and to have enabled him to enter the German market. We see this as the start of a fruitful relationship with CDC Investissement Immobilier. Our thanks go to all those involved in the implementation."
The buyers were assisted in the transaction by the law firm Poellath, while GSK acted for the seller. BNP Paribas acted as broker.