It was a deal of historic dimensions for the Munich real estate market, but now it has fallen through: the landlords and the software company Personio have “amicably” terminated the rental agreement for 40,000 square meters of space in the “Elementum” office building at the main train station, as if from a joint agreement Press release states. Two real estate specialist media first reported on it on Friday. Accordingly, the real estate company Accumulata, which is developing the “Elementum” for the majority owners, approached Personio with the request to terminate the contract because the project was being “realigned”. Completion, originally planned for 2025, is now scheduled for 2027.
It is one of the largest office construction projects in Munich, on the site of the former Postbank complex, which occupies the entire square between Bayerstrasse, Paul-Heyse-Strasse, Schwanthalerstrasse and Mittererstrasse. Part of the existing development will be retained and renovated, while parts will be expanded and rebuilt. Ultimately, the “Elementum” will have a floor area of 70,000 square meters and thus offer space for several thousand workplaces. The planning for the project comes from the Basel architectural firm Herzog/de Meuron.
It is one of the largest new office building projects in Munich and takes up an entire street block in the southern Bahnhofsviertel.
(Photo: Herzog/de Meuron)
The courtyard view gives an impression of the size of the project.
(Photo: Herzog/de Meuron)
The office market is generally under pressure due to the generally difficult economic situation and the significantly increased proportion of home offices. However, centrally located projects are still very popular and achieve top rents. According to industry circles, a rent of around 45 euros per square meter was agreed in the contract with Personio. With a term of 15 years, the rental agreement was worth around 300 million euros – a record value in the Munich real estate industry.
The contract was concluded by the Austrian real estate company Imfarr, which operated the “Elementum” together with the Swiss partner SN Holding. However, Imfarr is apparently in considerable economic difficulties; another new building project near the Stachus has been insolvent since last week. In autumn 2023, Imfarr and SN Holding sold 75 percent of the “Elementum” project to a fund owned by the US investment company Oaktree. They in turn commissioned Accumulata to manage the project.
The company Personio, founded in Munich in 2015, sells human resources software; in 2022, its value was estimated at 8.5 billion euros. Nevertheless, Accumulata Personio no longer wanted to have Personio as a tenant. The aim is to “make the space more efficient” and “adapt the project to the changed market conditions,” according to the statement. “By terminating existing rental agreements, we create flexibility in further planning because we are not limited by contracts and decisions made earlier.”
However, there is a second large rental agreement, namely for 14,000 square meters, with the coworking provider Wework, which is insolvent in the USA and also has an uncertain perspective in Germany. Accumulata writes that it is currently not possible to comment on this contract.
After the contract has been terminated, Personio now sees the “opportunity to reorient ourselves to the Munich market”. “In terms of space, the new office space will also be based on properties of a similar size.” The company is currently located on the other side of the railway tracks in the “Hopfenpost” office and business center.