It has not yet been decided whether the city will buy the Risart property on Buttermelcherstrasse for 100 million euros. Elsewhere, however, she wants to strike: The municipal committee of the city council spoke out in favor of buying a residential building plot on Nimmerfallstraße in Pasing for 30.6 million euros in a closed session on Thursday. The draft decision available to the SZ shows that the price is 15 percent above the market value of 26.6 million euros determined by the valuation office and is therefore at the upper limit of what the city can offer.
A special feature of this property is that until almost ten years ago it was still owned by the public sector: it comes from the GBW portfolio, which was sold in 2013 by the Bayerische Landesbank to an investor consortium led by the real estate group Patrizia. However, it is still uncertain whether the city will be awarded the contract with its attempt to bring the property back to public-interest use.
Municipal officer Kristina Frank writes in the submission that the seller of the property, Dawonia (the new name of GBW since 2019), has higher offers and will only sell the property to the city if it is at least equal to the highest bid. The municipal department assumes that this amounts to a good 34 million euros, which would be around 30 percent above market value. The city council voted with a large majority in favor of buying the property for a maximum of 30.6 million euros, only the faction of the FDP/Bavarian Party voted against it.
On request, a spokeswoman for Dawonia said that they generally did not comment “on the content of confidential negotiations and talks”. However, she explains: “In addition to the key data on the transaction”, the company’s “particular focus is that we select a reliable partner with whom we can enable the development of affordable living space on the property this year”. This can at least be read as an indication that the city has a chance. Because a sale to a private investor would almost certainly not result in affordable living space in the sense of city politics, but rather living space at Munich market prices.
Negotiations took place as early as 2017
The site at Nimmerfallstraße 60 to 76 is around 500 meters from the Pasing train station. There is still a building from 1950 that is scheduled for demolition. The building permit for a new building is available. Dawonia has terminated all tenancies, and the last tenants are due to move out in October.
The former GBW and the city had already negotiated a sale in 2017. Apparently, GBW would have given up the facility, which was still inhabited, for 22 million euros. The city council dealt with the issue several times, but no conclusion was reached. Mayor Dieter Reiter (SPD) spoke in this context of a “brazen” approach by the seller. GBW/Dawonia finally took the property off the market. When she put the property up for sale again that year, Dawonia invited the city to participate in the bidding process, despite the upset at the time.
In the past week, before the possible purchase by the city became known, the parliamentary group The Left/The Party demanded in an application that the city draw up a so-called sectoral development plan for the property on Nimmerfallstraße and thus provide private investors with guidelines for the to build affordable housing. However, the proposal would hardly be feasible in view of the apparently imminent sale.
In its coalition agreement, the green-red town hall coalition had decided on “a consistent exercise of pre-emption rights” in order to maintain or create affordable housing in central locations. However, since the city has hardly been able to use the right of first refusal in conservation statute areas since a court ruling almost a year ago, it is increasingly trying to get hold of apartments or building plots on the open market. In July, she decided to purchase a complex with 117 apartments on Gernotstrasse in Schwabing. The current focus is also on the acquisition of the previous company headquarters of the Rischart bakery near Gärtnerplatz. Risart would give the city the contract for 100 million euros (15 percent above market value). The municipal committee postponed a decision on the purchase on Thursday to the next general meeting on October 5th.