Sendlinger Loch: New investor faces major challenges!

Sendlinger Loch: New investor faces major challenges!

The “Sendlinger Loch” excavation pit in Munich, an area that has not made any positive headlines in recent years, now seems to have finally found a new source of hope. The Starnberg project developer Ehret+Klein has acquired the property on Alramstrasse for a whopping 53 million euros, as abendzeitung-muenchen.de reports. But as gratifying as the purchase is, the challenges are far from being overcome.

The excavation pit, which is one of the deepest in Munich at a depth of 15 meters, is still full of water and is currently a hot topic regarding its maintenance. The anchorings of the pit urgently need to be secured as the warranty period in Landau is about to expire. Quick action is required here! Ehret+Klein is now looking for investors and tenants before it can soon begin construction on the new “Landauer Tor” district, which will include 103 apartments and a striking tower. The project is scheduled to be completed towards the end of 2024 - a fitting goal to celebrate the city's 750th founding anniversary.

Previous problems and future outlook

The history of the “Sendlinger Loch” has not only been fraught with problems since today. The former investor M-Concept was forced to stop building 128 condominiums due to financial problems. According to sueddeutsche.de they had to sell the property to escape their financial misery. Whether the new investors will continue to pursue M-Concept's approved project or make their own plans remains uncertain for the time being.

However, some facts cannot go unmentioned. The purchase price for the property is a small step backwards compared to the originally paid 73 million euros that M-Concept invested in 2017. In addition, it is rumored that the apartments are being sold for 17,000 euros per square meter, an amount that is currently controversial. Given the general market development in Munich, which is considered one of the most dynamic in Germany, such prices are not entirely unrealistic, as domino-bau.de also states.

The market under observation

It will be exciting to see how the situation on the Munich real estate market will develop in the coming months. Despite the cloudy situation surrounding the “Sendlinger Loch”, the market in Munich remains highly popular due to the constant demand and the many new developments. It remains to be seen whether Ehret+Klein will demonstrate the necessary tact to navigate these turbulent waters.

With the planned construction progress on the “Landauer Tor” the situation in the area could improve significantly, but a lot of water will still have to flow through the “Sendlinger Loch” before solid living spaces are created.