France's ERAFP enters German market with Munich office buy

France's €26bn civil service pension fund ERAFP, has made its first venture into German real estate by buying a 12,500 sqm office property and adjoining 400-space parking house in Munich.

LaSalle Investment Management, which has a 10-year European mandate to invest in core-plus assets for L’Etablissement de Retraite Additionnelle de La Fonction Publique (ERAFP), bought the office asset in the Landshuter Allee in Munich's Neuhausen district for a sum "in the two-digit million euro range".

It is the third property investment for ERAFP, which has been steadily increasing its allocation to real estate since last year, when it bought a student housing asset in Kingston in the UK and a freehold retail property in Birmingham.

Beverley Shadbolt, a fund manager at LaSalle, commented, “The Munich-based asset has strong fundamentals, diversified income and a potential for long-term improvement in performance and value, which are all important factors when identifying high-quality core assets across Europe for ERAFP’s growing portfolio.”