News | Press Release

Becken buys existing office building in Munich and plans extensive ESG repositioning

Hamburg/Munich, January 23, 2023

• Becken expands project development business in Munich with third investment
• Office property acquired in City-West on Nymphenburger Strasse
• ESG repositioning of the portfolio with a proportion of new construction to start in 2025
• Grey energy from existing building fabric is largely reused

Becken, a specialist in the development, construction, and long-term asset and investment management of commercial and residential real estate, has acquired a nine-story office building in Munich at Nymphenburger Straße 112. The closing took place in November 2022. The economic transfer of ownership and obligations occurred at the end of 2022. The property, with approximately 11,600 square meters of leasable space, features two basement levels and seven above-ground floors, as well as a total of 104 parking spaces. The 4,123-square-meter corner lot on the prestigious Nymphenburger Straße offers excellent visibility and is considered a renowned and sought-after office location. Access to public transportation and the Mittlerer Ring is outstanding.

Becken has acquired the property in the City-West office submarket with the aim of comprehensively modernizing and repositioning the building to ESG standards from 2025 at the latest, making it suitable as both a single and multi-tenant office building. Dominik Tenhumberg, Managing Director of Becken Development GmbH, says: "We are delighted that we have been able to secure an existing building with the purchase of Nymphenburger Strasse 112, which is ideally suited for extensive repositioning and the creation of additional space due to its very good starting point, and at the same time enables the realization of very flexible, high-quality and modern office space."

Given the excellent structural condition of the building, the majority of the existing structure is to be preserved as much as possible, with plans to combine this with a limited demolition to allow for an expansion of the floor area. A significant amount of so-called “gray energy”—energy that was already incorporated during the building’s original construction—is to be further utilized through the reuse of the old building. Completion of the new, modern, and sustainable office space is scheduled for the end of 2026.

Overall, great importance is placed on compliance with the criteria set forth in the Taxonomy Regulation in project development. Dennis Anderson, Head of Acquisitions & Project Development at Becken Development GmbH, says: “The acquisition of this existing property demonstrates once again that high-quality, ESG-compliant repositioning that preserves existing energy infrastructure is becoming increasingly important in the project development business. At the same time, this project is a good complement to our project development activities in Munich, where we are currently already implementing the ‘Fabrik’ office project in Obersendling as well as the ‘Hoch der Isar’ residential development.”

The parties to the agreement have agreed not to disclose the purchase price. The transaction was brokered by BNP Paribas Real Estate. Becken received legal advice from Oberthür & Partner and technical advice from Witte Projektmanagement. SIGNAL IDUNA Bauspar AG is serving as the senior loan provider for the operational phase.