TH Real Estate and ECE have kicked off the €73m project to expand and modernise the PEP shopping mall in Munich's Neuperlach district.
The renovation will include a 7,900m2 expansion to the existing 50,000m2 retail area and a simultaneous modernisation of the entire mall. The expansion and planned refurbishment is to be concluded in 2018. TH Real Estate is investing around €73m in the project on behalf of a private client. ECE is responsible for the planning, project management, re-letting and rebranding; the company has handled the management and letting for the mall since 1989.
The expansion and modernisation of the PEP shopping mall, which opened for business in 1981, marks the start of an extensive urban district development that the City of Munich is planning in Neuperlach. Under this plan, the area surrounding the square next to the centre, Hanns-Seidel-Platz, will be redesigned and upgraded.
The expansion will supplement the existing spectrum of retailers at the PEP shopping mall, whose anchors include fashion multiples H&M and P&C, a Kaufland superstore and a Saturn consumer electronics store. The first lease for a unit in the annex has already been signed with the fashion multiple Primark and other incoming tenants will include a Müller drugstore.
“With the expansion and the simultaneous planned refurbishment of the shopping centre we intend to bolster the centre's strong position within the catchment area, and to raise the capital appreciation potential of the property,” explained Stephan Austrup, head of retail at TH Real Estate.
“We are delighted that TH Real Estate will handle the modernization and expansion of the PEP together with ECE, having previously cooperated in the areas of managing and letting over many years,” said Henrie Kötter, chief investment officer at ECE. “The refurbishment will give us a chance to apply our extensive competence and experience in the modernization and re-development of shopping centres.”