German office property sells for €200m

Munich-based investment manager KGAL has sold the Telekom headquarters in Bonn, Germany, to institutional investors from South Korea for more than €200 million ($215 million).

The deal closed at the end of 2016. KGAL, which will maintain a minority share in the landmarked property, has established an asset management mandate with the new owners.

The Telekom headquarters was built in 1995 and is currently being refurbished. It has roughly 860,000 square feet of leasable space and a 1,000-space parking garage. A long-term lease was set up with sole tenant Deutsche Telekom.

A total of €52.6 billion ($56.7 billion) of German commercial properties changed hands in 2016, according to Colliers International. Following the 2007 all-time high of €59.3 billion ($63.9 billion) and strong previous year results of €55.4 billion ($59.7 billion), this is the third time the €50 billion mark has been surpassed. In addition, the total exceeded the 10-year average by 56