pbb Deutsche Pfandbriefbank finances the Baumkirchen-Mitte urban development – currently one of the largest commercial real estate developments in Munich – with a €130 million loan facility provided to four project entities of the Joint Venture of CA Immo Deutschland and Patrizia Group.
The mixed-use Baumkirchen-Mitte quarter is being developed close to the city on the site of the former railway maintenance depot Munich IV, located between Munich's Eastern Railway Station and the Berg am Laim suburb.
The site, which has an aggregate size of some 60 hectares, will see the construction of about 450 apartments in several buildings, to be built in several phases over the next years. In addition, high-quality commercial floor space is planned on a separate area of the Baumkirchen-Mitte quarter. Furthermore, there will be two day-care centers for children. A local shopping center and a sports center will round off the overall concept. Construction work for the first flats is scheduled to start in the first quarter in 2014. A section of the residential floor space has been earmarked for publicly-subsidized housing. Almost half of the site will remain unbuilt, as a landscaped park.
Gerhard Meitinger, Head of Origination Germany at pbb Deutsche Pfandbriefbank, said: "pbb Deutsche Pfandbriefbank is also active in development financings on a selective basis – with a particular focus on projects at its Munich base, as well as in other boom regions. This transaction gave us the opportunity to win CA Immo Deutschland, a major market participant, as a new client – and to further grow our long-standing, successful business relationship with PATRIZIA Group."