Norwegian oil fund snaps up office properties in Munich
Norges Bank Investment Management has bought its first properties in Munich on its own.
The Norwegian sovereign wealth fund has paid AM Alpha €176.1m for two office assets in the centre of the German city.
The deal is the fund’s first German purchase without a partner.
Siegmut Boehm, managing director at AM Alpha, said: “We had overwhelming interest when we started the bidding process from both international and domestic investors, and we are glad to have chosen a top financial institution like Norges Bank Investment Management as an investor for our prime properties.”
Norges is likely to retain its interest in the two Lenbach Gärten properties – which total 29,000sqm – for some time.
The two assets are let to McKinsey & Co and Conde Nast.
AM Alpha has kept a 5.1% stake in the two properties for a co-investment fund it advises.
The firm will manage the co-investment vehicle, which will buy stakes in German real estate.
Norway’s sovereign wealth fund began stepping up acquisitions in ‘core’ Europe in 2012, entering the German real estate market via a €784m joint venture with AXA REIM.
The fund’s first German acquisitions were in Berlin and Frankfurt – a primarily retail asset in the German capital and a second combining office and retail in Frankfurt’s central business district.
A spokeswoman at NBIM at the time said the German market would form an important long-term focus for its real estate portfolio, alongside the UK and France.