International investment firm Von der Heyden Group has announced the sale of Blue Tower at the Bavaria Towers to leading asset manager on the German market Real I.S consortium, after having secured long-term lease contracts for the state-of-the-art project.
The 18-storey Blue Tower acquired from the Group with co-developers BayernProjekt and co-investors Zurich Gruppe Deutschland, is the second highest tower of the four-part high-rise complex in Einsteinstrasse in Munich with a gross floor area of over 24,000 square metres. The tower has been sold at a record yield of less than three per cent, registering the highest rate of return of equity for the Von der Heyden in their A-Class building portfolio.
The investment was made by Bayerische Versorgungskammer (BVK) fund managed by the largest AIFM in Luxembourg, Universal Investment. Real I.S.'s asset management mandate and purchase transaction included the asset and SPV management of the tower, complete with long-lease tech giant tenants NVIDIA and BayernHeim as well as Golding Capital Partners. The sale was collaborated by Colliers International and law firm Arnecke Sibeth Dabelstein where the parties have agreed not to disclose the acquisition price.
“The Bavaria Towers was one of the first major high-rise projects to be approved in Munich in a long time,” Sven von der Heyden, chairman and founder of the Von der Heyden Group, said.
“Over the span of 15 years we strived for pioneering architecture, a community-oriented concept and an A-class tenant structure to deliver a spectacular development that would redefine Munich’s Eastern cityscape. Having a renowned buyer in this transaction is testament to the Group’s commitment in providing organic and valuable returns from quality real estate investment.
“This project has been seeing difficult times as well, but the persistence of our equity partners, the tireless hard work of our advisors, consultants but foremost the team of Bayern Projekt have made this an outstanding success.”
The Von der Heyden Group has over the past week made the real estate news with the opening of new offices in Ukraine to establish multi-million commercial and residential property investments in Kyiv and Lviv. The Group has a track record for being a first mover in emerging markets, creating landmark Class A office buildings, running award winning hotels and delivering superior returns from real estate investment.
Von der Heyden Group (VDHG) is a leading high-quality niche player on the European real estate market and has been successfully developing Class A Office buildings and hotels in central and strategic locations in Malta, Germany, Poland and Spain.