INVESTMENT MARKET ONLY SLIGHTLY BELOW PREVIOUS YEAR
With a transaction volume of just under €2.1bn, the Munich investment market fell just short of the previous year's result by almost 4% and is almost exactly in line with the 10-year average. Relatively extensive portfolio sales, in which Munich properties were well represented in the turnover, also contributed to the result. Around 30% of total turnover was derived from portfolio sales, bringing €482 million. Compared to the rest of Germany, however, some locations benefited even more substantially from the fact that the investment volume in the first half of the year was driven strongly by portfolio sales. As a consequence of the lockdown and associated contact restrictions, the result for the second quarter in Munich was also down on the first quarter. Consequently a number of larger deals with their intensive due diligence processes were temporarily put "on hold". This resulted in only €940 million being generated between April and June, 39% less than in the same period of the previous year. Yet in the
meantime, market activity has picked up noticeably. Among the most important completed transactions are the sale of the Bertelsmann headquarters, which was sold to Allianz Real Estate for over €200 million in a sale-and-leaseback transaction, and the South Horizon (SoHo) project development.
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