Barings, one of the world’s largest diversified real estate investment managers, has completed the extensive redevelopment of the “Die Zentrale” office in Munich’s Sendling district. The property in Perchtinger Strasse 8-10 encompasses 13,200 sq.m. of office space. It is the first refurbishment project in Bavaria that has been certified under a new system by the German Sustainable Building Council (DGNB) – with a Gold-level rating. DGNB added the new profile “Renovated Buildings” to “New Constructions” and “Buildings in Use” last year as part of its relaunch of the DGNB Systems building certification method.

Barings bought the property, which is currently being leased, in 2017 on behalf of the Barings European Value Add Fund 1. Redevelopment started in 2018 and was completed as scheduled at the end of March 2021. Works included the installation of a new façade with a thermal insulation composite system as well as a new roof. Flexible space design for different office tenants, new community and external spaces as well as the modernization of the two-storey underground car park were also part of the revitalisation measures. All were implemented in close partnership with the tenants on site, with parts of the building remaining open at all times.

The use of environmentally friendly materials contributed to receiving the DGNB Gold certificate. All the wood used in construction stems from sustainable forestry, for example. Another factor was guaranteeing alternative usage through flexible space design, the barrier-free architecture and the extensive mobility infrastructure on site – from bike racks via charging stations for electric vehicles to shower facilities for all users in the building.

Sascha Becker, Country Head Germany at Barings, says: “We are very proud to partner with DGNB in its first ‘Renovated Buildings’ certification in Bavaria. With the certificate, we are emphasising our aspiration to integrate sustainable investment factors as part of our value-add strategy. The largest contribution in terms of a sustainable development was in fact the decision to revitalise the existing building. Instead of a carbon-intensive demolition and new development, we decided to implement a ground-up renovation of the asset. Our Munich asset management team did an excellent job of this complex refurbishment.”

Gunther Deutsch, Head of Transactions Europe at Barings, comments: “We were convinced from the outset that we would be able to raise value for our investors and the tenants by investing in the sustainability of the office. The demand for space in the asset and the positive development of the overall location confirm our assessment. With the certification, we were able to set new standards for existing properties and have thus satisfied investor and tenant demands for innovative sustainable strategies.”
 

Barings Real Estate

Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. BRE also specializes in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternativeinvestments.
 

About Barings

Barings is a $326+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of March 31, 2021