Nexum Group AG has signed the purchase agreement for its first development project in the Munich city area. As part of an asset deal, the residential property specialist acquired an existing building in Maxvorstadt in the immediate vicinity of the Technical University of Munich. According to the company, the acquisition was completed on attractive terms at a significant discount to the current standard land value. The projected total investment volume for the project amounts to around EUR 20 million.
On the inner-city site, the development company intends to deliver a total of around 2,800 square metres of gross floor area. The architectural concept is based on a combination of preserving existing building fabric and targeted densification, creating new living space without sealing additional green or open ground.
Three components for the inner-city residential ensemble
The construction plan is divided into three key measures designed to comprehensively upgrade and expand the existing site:
- —Revitalisation of the existing building, including switching to district heating, replacing windows, refurbishing the facade, staircase and balconies, and renewing the building services
- —Vertical extension of the existing roof structure to create additional apartments with roof terraces
- —Construction of a new rear building in the landscaped courtyard, which will achieve at least the energy-efficient KfW 55 standard
A positive preliminary building permit already provides a reliable planning basis for the project. The formal planning application has already been submitted. Nexum Group intends to execute the construction works together with established contractors within a timeframe of approximately two years. Marketing of the residential units is scheduled to launch in spring 2027, ahead of the planned start of construction works.
Counter-cyclical commitment in a strained market environment
Philipp von Erffa, Chief Executive Officer of Nexum Group AG, considers the acquisition the right starting point for his firm's strategic expansion. The creation of additional living space addresses a structurally undersupplied market. In the first half of 2026, one third fewer apartments were completed in Munich than in the same period of the previous year, whilst demand from students, young professionals and employers remains unabatedly high. The company aims to address the resulting bottleneck with short project delivery times and precise planning.
The buyer was supported with legal and technical advice during the transaction and preliminary due diligence. Advisors involved included the law firm Wagensonner Rechtsanwälte, auditing firm EY, and consultancy firms W+S Real Estate and MAVERO Real Estate.
