Knight Frank Investment Team completes Munich Transaction
Date : 23 December 2008
Ian McKee advised Custom House Capital Ltd on their most recent acquisition in Munich, Germany.
The acquisition recently completed on the 23rd December 2008. The subject property is the a large office and retail mixed use development with 2 adjoining hotels. The property is known as the Parkstadt Centre and is located in Schwabing in Munich. The area is largely an office location a few
kilometres from the city centre.
The hotels are operating as a 3 Star Tulip and a 4 Star Golden Tulip one containing 225 rooms and the other 160 rooms. The 3 star hotel was constructed for the 1972 to cater for the Olympic Games and has been extensively refurbished. The 4 star Golden Tulip was constructed in 2008. Long Leases of 16 and 18 years are in place for each of the hotels.
The retail mall contains household German names such as Rewe, Dm Drogerie and Penny. In total there are 11 tenants in occupation with approximately 4,800 sq m of retail space. Above the retail space there is a office accommodation totalling approximately 7150 sq m. The majority of the retail units are let on long 10 to 15 year leases. The offices leases are all 10 year leases with one 15 year lease.
The full development was purchased for a price of €91,000,000.