HUK-COBURG Plans Major Upgrade of 10,000 sqm Munich Commercial Property

HUK-COBURG is moving forward with the repositioning of an existing commercial property in Munich, appointing ABG Real Estate Group to oversee a multi-stage refurbishment programme expected to continue through 2029.

The property provides approximately 10,000 sqm of rental space for office and other commercial uses. The investment will involve substantial changes to the building rather than a limited cosmetic renovation, with upgrades planned for its technical infrastructure and external appearance alongside possible alterations to its internal configuration.

Further structural measures are currently being assessed as part of plans to make the property more suitable for changing occupier requirements. The programme could also broaden the building’s range of uses, particularly at street level.

Under the current concept, parts of the ground floor could accommodate restaurants, shops or service businesses. Introducing these functions would diversify the tenant mix and potentially increase activity around the property beyond conventional office hours.

Sustainability will also influence the refurbishment programme. The project is intended to pursue a recognised building certification, although the precise certification system and targeted level have not yet been determined.

ABG will work with HUK-COBURG from the planning and assessment stages through to delivery. The Munich-based developer will be responsible for coordinating the different technical, structural and commercial elements required to reposition the asset.

Alexander Cronauer, Managing Director of Development at ABG Real Estate Group, said projects involving substantial intervention in existing buildings require careful coordination between structural feasibility and the commercial objectives of the owner.

For HUK-COBURG, the investment represents a decision to improve and adapt an existing Munich asset rather than pursue an alternative strategy based on its current configuration. Mario Oppmann, Managing Director of HUK-COBURG Asset Management, said the programme is intended to prepare the property for its future role in the city’s commercial market.

The project reflects a wider challenge facing owners of established office properties in major German cities. Changing occupier expectations, energy performance requirements and competition from modern buildings are increasing the amount of capital some older assets require to remain competitive.

In markets such as Munich, this is strengthening the investment case for refurbishment where location and building structure justify additional expenditure. Successful repositioning can extend the economic life of an existing property while allowing owners to introduce more flexible space, improve technical performance and respond to changing tenant requirements.

With completion planned by 2029, the HUK-COBURG project will provide another example of how owners are addressing ageing commercial stock through substantial reinvestment rather than relying solely on new construction.