Patrizia has acquired a prime development site in Munich, Germany, on behalf of its institutional clients, to build a brand new, state-of-the-art 15,700 sq m office building.
The site is situated in the heart of the Werksviertel, Munich’s new prime office mixed-use district near Ostbahnhof. Construction is due to be completed by the end of 2023. The area combines old and new, including a mixture of historic factory buildings and contrasting modern structures, as well as amenities, leisure and cultural attractions, such as Munich’s new Concert Hall, making this a highly sought-after area for businesses, visitors and residents alike.
“This acquisition presented us with an exciting opportunity to build on Werksviertel’s rich history and be part of the area’s incredible transformation, which over the last few years has seen it become one of the most vibrant new redevelopment areas in Germany. We are looking forward to our next acquisitions and being a significant player in Munich’s real estate market,” said Johannes Haug, Head of European Real Estate Development at Parizia.
The area is well served by local public transport to and from Ostbahnhof, which connects to the regional and national railway network.
Mirjam Link, Regional Manager of the Munich Office and Head of Real Estate Development Germany South adds: ”When we started designing the building we put flexibility, efficiency and sustainability at the heart of the project and made sure that wellbeing and collaborative working was considered throughout. We are creating a modern and future-proof office building that is well placed to meet occupiers’ demand for high quality office space. That enables us to deliver strong returns to our investors.”
”Despite COVID-19, Patrizia expects prime rents to remain stable in strong office markets like Munich.”
Despite COVID-19, Patrizia expects prime rents to remain stable in strong office markets like Munich. Patrizia anticipates an increased demand for future-proof buildings with high indoor air quality and state-of-the-art HVAC systems. In the long term, tenants will continue see office space as an important tool for enhancing productivity levels, encouraging collaboration, and attracting and retaining talent.
Earlier this year Patrizia launched a design competition for the site and invited five renowned local, national and international architecture firms to propose conceptual designs for the office site. A jury of architects, engineers and urban planners evaluated the five designs and provided recommendations. The winner of the competition was CF Möller in Copenhagen. Together with their local partners, CL Map, they have been developing the design further over the past few months.