Transforming an office block from the ground up
Das Leuchtenberg is a 30,000 sqm office building located in Munich East. When AEPM acquired the site off-market in March 2015, it was perceived as a depreciating asset with little appeal to tenants or investors.
Creating spaces to inspire peoples’ lives
Das Leuchtenberg represents one of the most successful ‘manage-to-core’ projects for the business to date.
During our 3-year ownership, AEPM transformed the asset. A dilapidated 1980s office building with 60% vacancy and a 2-year average lease expiry has been completely transformed into a contemporary space, with full occupancy delivering strong income for the next decade.
We invested over €30m to significantly upgrade every aspect of the building. The main frontage, staircases, lift lobbies and a large inner courtyard were all completely redesigned to create appealing, employee-friendly amenities. Office areas were fully refurbished and a number of new occupiers secured.
As testament to the transformation of Das Leuchtenberg, the City of Munich relocated its offices to the property expanding over 3 phases before signing up to a total of 17,000sqm for 15+ year leases.
In June 2018, AEPM sold the fully let property as a core asset.