- Starting signal for Munich's first high-rise axis
- Outstanding location advantages confirmed by city study
- Deal underscores industry expertise and instinct for market developments
(Munich, August 2020) A unique landmark development opportunity and the vision of a high-rise cluster including an innovative mobility concept – this is what the ONE HUNDRED EAST real estate project in Munich East, which CV Real Estate AG and KanAm Grund Group's German Development Fonds have initiated, driven forward and now sold, combines. With the vision of a significant increase in space in the existing development rights as well as a potential purchase of adjacent properties, the joint venture had acquired the office property with approx. 18,000 sqm of gross floor space on a plot of land of around 14,500 sqm about a year ago. This is located in the commercial area on Zamdorferstrasse/Klausenburgerstrasse, which – confirmed by a high-rise study published by the City of Munich – is now considered the most suitable location for the development of a high-rise score for the creation of office and commercial space in the southern German metropolis. The buyer of the property, which already has a preliminary building permit, is an Austrian family office. The purchase price is close to a three-digit million amount. The seller side was advised by GSK Stockmann and the law firm Wagensonner, the buyer side by Arnecke Sibeth Dabelstein. Christian Vogrincic, founder and CEO of CV Real Estate AG, had already recognized the enormous potential of the site at a very early stage: "After the acquisition, we were able to optimize the value and leases within a year as part of our CV asset management, secure the first stage of the increased building rights via a preliminary building permit and, in the second stage, drive forward the high-rise vision for Munich. The closing now symbolizes the go-ahead for one of the most spectacular real estate projects in the Bavarian capital, with national implications."
With the sale of ONE HUNDRED EAST, the Munich real estate specialists are demonstrating not only their expertise in the market, but also their right sense for developments in the industry, as well as their confidence in it and their courage to invest in its future: "It is long past time that Munich – as the center of southern Germany and a location in high demand worldwide – gets a high-rise cluster. We have long been convinced that Munich East is the area with the best prerequisites for this and will develop into the city's hotspot in the future," explains Anatol Obolensky, CEO and COO of CV Real Estate AG: "This is now also confirmed by the 2019/2020 high-rise study published by the city, which grants the area significantly higher building rights." But beyond the unique landmark development and redensification opportunity, there is another key factor that will propel Munich East past all other locations: its future-proof mobility concept, developed by CV Real Estate AG's own innovation lab.
Innovative transport model for Munich's gateway to the city
The ONE HUNDRED EAST is located next to other new developments, such as the existing high-rise of the Süddeutsche Zeitung or the Bavaria Towers, in an already attractive environment. However, in addition to the design of the high-rise axis, the development focus must also be on the infrastructure of the neighborhood. Christian Vogrincic: "In order to be able to leverage the potential of the neighborhood and thus create the urgently needed relief for the Munich real estate market, a number of tasks need to be solved, particularly in the area of mobility. In our CV Innovation Lab, we are therefore developing a comprehensive mobility and transport concept that addresses the requirements of the various stakeholders and envisages a networked and CO2-neutral infrastructure for Munich East that does not require motorized private transport." This includes, among other things, a planned extension of streetcar No. 19 with a direct connection to the S-Bahn and the city center. All of this will make the area around Steinhausen and Zamdorf the most important area outside the city center in the future and evidence of a unique neighborhood development as a cooperative effort between the city of Munich and the local property owners. Anatol Obolensky: "The ONE HUNDRED EAST is thus part of a development axis with strong appeal for tenants and investors, and the new owners will have a lot of fun with it."