Feldberg Capital, in a joint venture with Die Mehrwertbauer, a Berlin-based investment manager and property developer operating throughout Germany, has acquired a former 4-star hotel in Munich-Sendling.
Built in 2002, the property is to be converted for occupation as residential accommodation.
The parties agreed not to disclose the purchase price, however the total investment volume will be around €20 mln. A long-term lease of the building has already been signed with a public sector user.
Robert Bahr, head of investment (Germany) at Feldberg Capital, said: 'We are proud to be part of a project that will not only create commercial added value but also have a positive social impact.
'With the project in Sendling, Feldberg aims to respond to the increasing demand for new housing, particularly in urban centres like Munich. The transaction is further evidence of our commitment to delivering innovative and sustainable real estate projects that meet the needs of the community.'
The property is situated in the heart of Munich-Sendling, in the area between Harras and Albert-Rosshaupter-Strasse. Its outstanding location guarantees optimal connections to both the Munich ring road and public transport.
The central railway station, Marienplatz (city centre), universities and Theresienwiese are all within a 10-minute radius. There is a variety of shops for daily needs within a few minutes' walk. Additionally, the location enjoys high recreational value, with a number of parks in the immediate vicinity.
The site has an area of around 840 m2, and the existing building, which is on seven floors plus a basement and underground car park, is in very good condition.
Currently, with 66 rooms and 3,490 m2 lettable area, over a gross floor area of around 4,110 m2 including the underground car park, the property has significant development potential, Feldberg said.
Fried Frank, SKW Schwarz and BNP Paribas Real Estate acted as advisors on the transaction.
