German bank Pbb Deutsche Pfandbriefbank has financed a development in Munich’s city centre, with a €112 million loan provided to the Brecht-Bergen family.
The private client is developing the so-called KARL, a new commercial real estate development designed by London-based architect David Chipperfield. The building will be based at Karlstrasse, near Munich’s central railway station.
Pbb’s debt package will finance the construction and long-term maintenance of the new building, which will offer a mix of different usage types, with a focus on offices.
The loan is part of pbb’s push to diversify its real estate finance business by tapping new client groups, including wealthy private investors, the bank said.
“KARL will be attractive to businesses, thanks to its central location and state-of-the-art office design,” said Gerhard Meitinger, pbb’s head of real estate finance in Germany.
“We are also delighted to have the opportunity to work with the Brecht-Bergen family for the first time, providing evidence of our growing network amongst high-net-worth private clients,” Meitinger added.
KARL will have approximately 30,000 square metres of rentable space, plus around 300 underground car parking spaces. Construction is set to start in 2018, with completion scheduled for 2021.
The development will be built in the former ‘Brewery Quarter’, right behind Munich’s main station. The district is set to gain further prominence through substantial refurbishments at the central rail station, pbb said.