Proprium Capital Partners, a company majority-owned by L&G, and Garbe Insite have established a programmatic joint venture. The partnership aims to build a portfolio in the urban industrial segment, with a planned investment volume of EUR 500 million. This portfolio is set to include revitalisation projects and selected new developments in urban locations across Germany, as well as in chosen European markets.
The joint venture's first acquisition, completed on 29 September 2026, involves a 16,700 square metre plot. This is centrally located in Munich's Bogenhausen district. A total investment of approximately EUR 75 million is planned for this project. Notably, around 70 percent of the space has already been pre-let based on a long-term lease agreement with an established Munich technology company, even before the planned start of construction.
Proprium is contributing the majority of the equity as well as its investment and transaction expertise to the joint venture. Garbe Insite, meanwhile, is undertaking a comprehensive range of services, including project development and asset management for the portfolio to be established. The plot was acquired from tk accelis GmbH, a company of the industrial and technology group thyssenkrupp.
Strategic Direction and Project Planning
The partners are pursuing a strategy that responds to the structural scarcity of urban industrial space and the increasing demand from various sectors. Philipp Westermann, Managing Partner at Proprium, stated that urban industrial spaces in central locations are limited, while demand from trade, light manufacturing, research and development, and last-mile logistics is growing. The joint venture serves to create its own platform to benefit from this development. The Munich project, with its high pre-letting rate, represents an ideal start.
Martin Czaja, Managing Director of Garbe Insite, emphasised the intention to bring industrial businesses back into cities. He explained that manufacturing companies are regaining access to inner-city areas due to the current office market situation. The goal is to develop future-oriented property solutions for tenants from industry, tech, and science, while also providing institutional investors with access to the light industrial property market.
The older office and warehouse buildings currently on the plot will be demolished, professionally recycled, and replaced by a modern industrial property with a total area of approximately 13,500 square metres. This property is designed for diverse uses, including production, warehousing, research and development laboratories, offices, and communal facilities. The concept envisages a high standard of fit-out and special security measures. A DGNB Gold certification is being sought.
- —The planned building is conceived as a hybrid property, allowing for various uses.
- —The spaces are flexibly divisible into smaller units.
- —The property is attractive to local Munich companies as well as tenants from logistics, e-commerce, light industrial, and science & tech.
- —The location in Bogenhausen is excellently connected to public transport, with a five-minute walk to the Berg am Laim S-Bahn station and six minutes to the Riedenburger Straße tram stop.
All project developments by Garbe are realised according to current ESG criteria. For the new property, air source heat pumps are planned for heating, eliminating fossil fuels. Additionally, photovoltaic systems are planned for the roofs. Following the demolition of the existing buildings and site clearance, construction is scheduled to begin in the fourth quarter of 2027. Completion is projected for the end of 2028.
