German investor Doblinger has bought four office properties in Munich from BayernLB for around €360 million.
The price reflects about €17,570 per square metre, said a market source. A source familiar with the situation said investors would have paid these prices six months ago. Properties have been going through a repricing since Russia invaded Ukraine and central banks have raised interest rates.
Last week, BayernLB announced the sale of four properties it no longer deemed essential for its operations, but it did not disclose any further information. The bank said it would raise its profit outlook for this year to more than €500 million from €300 million to €500 million at the start of the year thanks to a one-off gain resulting from the sale. The properties are in Brienner Straβe, in the city centre.
BayernLB recorded €396 million of property, plant and equipment in its accounts as of 30 June 2022. The item included €224 million worth of property, €48 million of equipment and €124 million rights of use and leasing obligations.
Doblinger is a private real estate company, which employs 650 people and generates €500 million in annual revenues, according to its website. It was founded by Alfons Doblinger and operates under the brand names Dibag, Bayerische Gewerbebau, WSB Bayern and Monachia.
Doblinger and BayernLB did not respond to requests for comment by the time of publication.