HIH extends lease agreement for 19,200 square metres in Munich

HIH Invest Real Estate has extended the lease agreement with the BMW Group for around 19,200 square metres at Taunusstraße 41 in Munich on a long-term basis. The car manufacturer is the sole tenant of the property in the Milbertshofen district. Around 11,000 square metres of the rental space is used for offices and the remainder for laboratory and workshop space as well as a canteen. The tenant also has 163 underground car parking spaces and 93 outdoor parking spaces at its disposal. The property is part of the portfolio of a special fund managed by HIH Invest Real Estate.

"We are very pleased that we were able to convince the BMW Group of the advantages of an early contract extension thanks to our market knowledge and the close cooperation between asset and letting management," says Anja Honig, Asset Manager Logistics at HIH Real Estate.

The building was built in 1972 on a 12,000 square metre site and extensively renovated in 2012. It is located in the Milbertshofen district north of Frankfurter Ring and west of Ingolstädter Straße in the immediate vicinity of the ‘Euro Industriepark’. The area around Frankfurter Ring is part of a long-term urban development programme. The plans include the creation of residential space and green areas on the Knorr-Bremse site, the site of the former Bayernkaserne and the expansion of the Research and Innovation Centre (FIZ) to the north of the property.

‘Our strategic key account activities focus on ensuring the long-term overall satisfaction of our tenants. This also includes determining future space requirements at an early stage in order to agree a prolongation - as with the BMW Group,’ explains Ken Kuhnke, Head of Major Tenant Management at HIH Real Estate.

"The exclusively used property is located in the immediate vicinity of the BMW Group's Research and Development Centre (FIZ). The excellent fit and attractiveness of the fund property as well as the early prolongation provide excellent support for the investment horizon and the fund's target return of an average distribution of around six per cent per year," says Niels Holweg, Fund Manager at HIH Invest Real Estate.