ABG Capital, the newly-founded investment management unit of Germany's ABG Real Estate Group, together with occupational pension plans as joint venture partners, has acquired an asset in Munich.
The partnership plans to transform the residential and commercial building in Sonnenstrasse 20, which has some 4,500 m2 of floorspace.
The property will be completely refurbished to focus on offices, with a new building added in the inner courtyard. The envisaged flexibility of the planned office floor space will permit development of open-plan workspaces as well as individual offices – providing for effective protection in the wake of the coronavirus pandemic.
ABG Development will manage the construction project, which is scheduled for completion by the end of 2023. The total investment volume will amount to approximately €70 mln.
Ulrich Höller, managing partner at ABG Real Estate Group, said: 'Following shortly after ABG Capital’s establishment, this project marks the successful launch of the company’s operations.
'With the acquisition of the Franz project, and a further transaction of a property in construction, the entity has already executed investments in excess of €300 mln during its first few months.'
The building was built in 1953 and then used as a residential and commercial building until the end of 2020. The property has been largely gutted and dismantled, and will be handed over to its new owners unlet.
The main building comprises seven upper storeys (including the ground floor) plus one basement level. In addition to office space, eight attractive penthouse apartments will be built on the upper floors, offering unique views of the city and the Alps.
The ground floor will house retail and gastronomy space; above-ground parking spaces will be moved to the basement, where 22 bicycle stands (including charging points for e-bikes) will also be installed. An additional rooftop terrace will be constructed on the first floor. A new, high-grade facade with distinctive features will be installed facing Sonnenstrasse.
The new building on the inner courtyard will offer three floors of office space, with direct access to the green courtyard.
Munich-based architectural firm archiv b had already been commissioned with the planning of the project by the seller. Construction is scheduled to start in the spring of 2022; completion of the building is planned for some point before the end of 2023.
Cushman & Wakefield acted as broker, while Heussen Rechtsanwaltsgesellschaft was legal advisor to the buyer, while Deutsche Pfandbriefbank accompanied the financing.
