Union Investment has acquired an office project development in Munich’s Werksviertel district via a forward funding deal from Pandion. The purchase price was not disclosed.
In the immediate vicinity of Project East, which was acquired by Union Investment earlier this year through a joint venture with Hines, a PANDION OFFICEHOME will be built by summer 2024.
Construction of the office building, which will provide around 1,500 workplaces, will start in January 2022. The building has already been let for 15 years to the Bundesanstalt für Immobilienaufgaben for use by the German Patent and Trade Mark Office since the summer of this year.
As a perimeter block development with two transverse wings, a total of 44,700 m² of leasable office space and 3,180 m² of underground storage space will be created on up to seven floors. In addition, there will be 309 underground parking spaces and around 400 bicycle stands. A crèche and an employee restaurant will round off the utilization.
Union Investment said half of the acquisition is made for the special real estate fund UII German Prime Select and half for UII MSI ges. InvKG, which is managed by Union Investment on behalf of the Bayerische Versorgungskammer.
“Munich is Germany’s most stable office market and the Werksviertel is currently one of the city’s most sought-after submarkets. There is limited space available and office vacancies in this submarket are running at just 0.5 per cent. Many development projects have a correspondingly high pre-letting rate,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment
“With the project in the Werksviertel, we are selling the largest office development in the history of our company to date,” explained Pandion CEO Reinhold Knodel. “In a prime location, we will realize a new and modern address for the employees of the German Patent and Trademark Office here in the next few years.”
The building has excellent transport links, being situated on the southern edge of the Werksviertel district, east of downtown Munich and close to the city’s Ostbahnhof station (Bavaria’s third largest station). The ring road, motorway and city centre are just a few minutes’ drive via Rosenheimer Straße. The property is very well connected to public transport, with multiple subway and suburban rail stations and bus stops within walking distance.
The sustainability certification to be achieved is DGNB Gold. In addition, the building is to be constructed in accordance with GEG 2020 and BEG 55 and awarded Wired Score Gold. According to the current status, the building will be taxonomy-compliant.
