Ardian buys Munich office complex in €100m-plus first deal

The independent private equity Ardian Real Estate has bought its first real estate asset, acquiring a multi-let Munich office and business park complex from Publity AG for a price thought to be well in excess of €100m.

The move comes just a year after it made the decision to move into the property sector, making a number of high-profile personnel hires to spearhead its strategy.

Ardian, formerly AXA Private Equity and spun out of giant insurer AXA in 2014, said it was aiming to have €2bn in real estate assets under management by 2020, with the division being its fifth investment subsidiary. The company manages sovereign wealth and pension fund capital, and said that for its Ardian Real Estate Europe Fund (AREEF), its focus is on European core-plus and value-added commercial property.

The landmark commercial property in Munich surrounds the historic Wappenhalle, or "Coat of Arms Hall", which is the old arrivals hall of the previous Munich airport in Munich-Riem, which closed in 1992. It has 33,700 sqm of office space, 1,200 sqm of warehousing, and 544 parking spaces, located directly opposite the new Munich convention and exhibition center in München-Riem, now the city’s convention centre district. The complex is let out to 24 separate tenants on long-term leases.

Only a year ago Ardian decided to enter the property sector, making a number of high-profile hires including Bertrand Julien-Laferrière as head of Ardian Real Estate, and former Allianz Real Estate CEO Olivier Piani as an adviser.

According to Julien-Laferrière, who previously held roles at Accor, Unibail-Rodamco and Société Foncière Lyonnaise – where he was also CEO – said Ardian was targeting “high-potential office real estate in major cities of Europe’s core markets, looking to enhance rental income significantly through active asset management." Assets targeted for the fund would have a ticket value of more than €100m on average, he suggested.

"This is Ardian Real Estate’s first investment, and so it is a significant moment. We completed this deal just three months after entering this segment in the German market, which is a great achievement,” he said. “The office complex fits in perfectly with our investment strategy.”

“We hope to announce additional acquisitions in some of the targeted large cities in France, Italy and Germany in the coming months,” Julien-Laferrière said. The company has set up real estate teams in Frankfurt, Paris and Milan.