A new wholesale market on the outskirts of the city and concentration on a large urban residential area on the previous wholesale market site in Sendling: Economics officer Clemens Baumgärtner brings a change of course in the city’s considerations on the future of the wholesale market into play. “When I look at the development of construction costs and the uncertainties in planning law, I have serious doubts as to whether the construction of a wholesale market with apartments on top in Sendling, which is currently being discussed, is a good idea,” Baumgärtner (CSU) said Süddeutsche Zeitung and the Real Estate Newspaper.
Baumgärtner’s initiative is politically explosive. Among other things, he is opposing his party friend Kristina Frank, who as a municipal officer is responsible for the operation of the wholesale market and is vehemently campaigning for a new building on Schäftlarnstraße, opposite the southern heating plant. Groceries should continue to “come from the heart of Sendling,” she said in the spring, and “an ultra-urban lighthouse project” should be created in the heart of Munich.
Baumgärtner sees it differently: “It’s no use planning and building such a complex project and then realizing that it was so expensive and therefore the rents for the dealers must be so high that nobody can afford it anymore.” He wanted to avoid a discussion about a wholesale market location outside the city limits. A few years ago there was talk of moving to Parsdorf. “From the point of view of the economics officer, it is important that the dealers stay in Munich, for the city it is also about decent income from the trade tax.”
In addition, if the wholesale market were to move out of the city center, a “prime property in municipal ownership” would be free “to create as much affordable housing as possible there, that would be a wonderful thing,” says Baumgärtner. At least on part of the current wholesale market site, this is planned in the long term anyway, but it would only be possible if space becomes free through a new building. However, a combination of wholesale market and living on the 26-hectare site (which corresponds to a good half of the Theresienwiese) also raises legal questions that have not yet been clarified due to the night-time delivery traffic with some heavy trucks.
Baumgärtner’s initiative for an alternative concept comes at an exciting time. A tender by the municipal department recently expired, to which investors could apply with concepts for a new wholesale store. An important point is to secure cheap rents for the dealers – but this could be a challenge not only because of the construction costs, but also because of the rising interest rates on loans if the project is also supposed to generate a return.
Next week, Kristina Frank wants to present the outcome of the tender in the non-public part of the city council general meeting. Previously known was the interest of the Büschl group of companies from Grünwald, which had brought up the idea of building an as yet unspecified number of apartments on the roof of the wholesale market, half privately financed, half price-regulated. The Munich public utility company had also expressed an interest, saying they would also like to set up a bus depot on the site.
It is undisputed that a new wholesale market is urgently needed. The existing stock with scattered halls, which has grown over decades, blocks a lot of valuable ground. Above all, the building fabric is so dilapidated that the city has to invest at least 30 million euros to ensure operations at least until 2030. Then, according to the plan, the new wholesale market should go into operation.
“Our working conditions are currently extremely stressful”
From the point of view of many retailers, the time aspect is extremely important. “Our working conditions are currently extremely stressful and unsatisfactory,” says Semih Yildirim, Managing Director of Or-Pa Handels GmbH. His colleague Daniel Schury, head of Franz Schmitt GmbH und Co. KG and board member of the Bavarian Fruit Trade Association, adds: “We need a new wholesale store that is tailored to our needs as soon as possible. If that could be done faster and easier at another location in Munich I’m open to it.” However, it should be borne in mind that such a location must also be easily accessible for employees at night.
The question of whether there is another plot of land in the city area is central to Baumgärtner’s approach. The municipal department reports that in autumn 2020 the planning department “examined possible plot alternatives within the city limits”, with the result that “there are no alternative immediately available locations for the wholesale market hall”. From the point of view of the economics officer, however, the last word has not yet been spoken. He wants to check again himself whether there are areas that come into question. He thinks about it “in the east towards the exhibition center or in the west near the Paulaner brewery in Langwied”.
Skepticism about the currently planned investor model can be heard from the real estate industry. Both the “wholesale store plus office” idea, which was originally pursued by a wholesale store company, and the “wholesale store plus living” idea put forward by the Büschl Group are enormously complex projects with problems and construction costs that are difficult to foresee, says Peter Bigelmaier, Munich branch manager of the real estate consultant Colliers. “Such projects are dangerous.” He also thinks the 2030 target is illusory, “before 2035 nothing will be done at all”.
On the other hand, he believes that the new construction of a pure wholesale market hall on a greenfield site can be realized in four to five years, says Bigelmaier. During this time, one could create parallel residential building rights on the current wholesale market area in Sendling, possibly also together with the Büschl Group, which still has a heritable building right for parts of the areas for about 15 years. “The city must ask itself the fundamental question,” says Bigelmaier, “what is the right way.”