Patron and Barings sell repositioned Munich office asset for €40m

Pan-European investor Patron Capital and its asset management partner, Barings Real Estate Advisers have sold an office building in Munich to unnamed British institutional fund manager for €40m. The deal for the asset known as 'Connect', located on Ridlerstrasse 55 in Munich's Westend, was completed off-market.

The multi-tenant building was bought in 2014 by Patron and Barings with 40% vacancy and an unexpired WALT of five years for the remaining tenants. Patron and Barings repositioned the 129,300 sq ft property, which is made up of five storeys of office space along with 147 car parking spaces.

Following refurbishment, the building was fully let, attracting new tenants and extending leases with existing tenants. The asset has been fully occupied since November 2015. . In total Patron said it and Barings had invested a high single-digit million amount for building upgrades and a new letting campaign.

According to Keith Breslauer, Patron's managing director, "Post the excellent work by the team in repositioning the asset, it attracted significant interest ahead of a formal sales process given its prime location, quality and high-calibre tenant roster. Germany remains an important market for Patron and we are very active in various new investments across the country with a target of €300m of capital to invest."