German real estate manager Corpus Sireo has advised on the first acquisition, of two office buildings in Vienna's Marximum office complex, by its parent group Swiss Life's new €700m REF Key Metropolitan Areas Europe fund.
Offering 17,000 sqm in two adjacent assets, the assets were purchased from German builder Hochtief which in 2010 implemented the Marximum project consisting of five office properties.
The complex is in the Erdbergcity area on the border with Vienna's 3rd district and has achieved an occupancy level of over 90 %. Corpus Sireo said a reputable new tenant has recently been won for the space, while other creditworthy occupants from IT, retail and insurance also recently moved in and are using the location as corporate headquarters.
Marximum is partly known for the Gasometer, the nucleus of a new urban area offering retail and leisure facilities, and the buyer anticipates further appreciation as a result of new residential and commercial developments. The firms agreed to give no details of the price of the transaction. But rents in Marximum are running at around €14 per sqm which puts the value of the investment at €50m-€60m, specialists say.
The Swiss Life REF (DE) Key Metropolitan Areas Europe fund was launched by Swiss Life Asset Managers late last year and is aimed at German institutional investors. "The funds are invested in commercial properties in core European markets," said Christine Bernhofer, Managing Director of Swiss Life KVG in a release. "We are concentrating on established economic centres with employment growth and liquid investment markets."
Acquisitions will focus on cities in European metropolitan regions in France, Scandinavia and the Benelux countries, while additional investments are planned for the UK and central and southern Europe. As well as office properties and inner-city retail real estate, the fund can also invest in specialist retail centres as a means of diversification.