Deutsche Pfandbriefbank AG (pbb) has granted financing totalling EUR 48.83 million to fund units managed by ESR Europe for a real estate project in Munich. The financing concerns the transformation of an office complex into a serviced apartment property. The project is located in the southeast of the city, in the area known as the Weißen Quartier.
The property in question spans approximately 11,000 square metres. ESR Europe has already completed the shell construction of the building. The financing provided enables the further realisation and final fit-out of the project, which will create new capacity in the serviced living sector in Munich and redefine the site's usage strategy.
Location and Usage Concept
The Irish Staycity Group, an established provider of aparthotels, has been secured for the future serviced apartment property. The company has signed a long-term lease for the property. Here, Staycity will establish its first location in Munich under the Staycity Aparthotel brand, marking the company's expansion into the Bavarian market.
Upon completion, the aparthotel will comprise 255 fully equipped rooms. This offering is aimed at business travellers and tourists and contributes to the diversification of accommodation options in the Munich metropolitan region. The conversion of office spaces into residential or mixed-use concepts is an increasingly observed development in the real estate market, particularly in urban centres with high demand for flexible living arrangements.
Gerhard Meitinger, Head of Real Estate Finance Germany at pbb, commented on the transaction. He emphasised that pbb's involvement in this project represents a further step in the company's commitment to the serviced living sector. This underscores the strategic importance of such projects for the financing institution in the current market environment.
