AXA Real Estate Investment Managers, the real estate investment arm of French insurance giant AXA, and Norges Bank Investment Management (NBIM), the manager of Norway’s NOK4.7 trillion (€570 billion; $770 billion) Government Pension Fund Global, have teamed up to buy the SZ Tower in Munich.
The two organizations acquired the 670,000-square-foot office building on a 50:50 basis for €164.1 million from Prime Office REIT, a Munich-based property company. The deal is expected to complete by the end of the year.
Pierre Vaquier, chief executive of AXA Real Estate, said in an announcement about the transaction: “Growing our real estate business in Germany is a strategic priority for us, and we will continue to look for further investment opportunities on behalf of our clients. We also are very pleased to continue our relationship with NBIM, demonstrating our ability to work with the world’s leading investors.”
The deal marks the continuation of an investment partnership between AXA Real Estate and NBIM, which effectively began with Norwegian manager buying half of a €1.4 billion portfolio of offices in Paris in July 2011.
Since then, the partners have transacted further Paris office investments, other German acquisitions and, last month, set up a new joint venture that will underwrite senior loans of up to €600 million to help finance large transactions throughout Western Europe.