"Expensive daily expenditures associated with the Benko-Prestige construction in Munich's pedestrian zone"
In the heart of Munich, the Alte Akademie, a building of historical significance, remains a construction site after almost two years. The project company "Alte Akademie" is currently under insolvency, with no concrete information available about ongoing construction activity or potential buyers considering the abolition of the hereditary lease.
The hereditary lease, known as Erbbaurecht in German, has been a topic of intense discussions. If abolished, the old academy building could become more attractive to potential buyers, increasing its purchase price by 30 to 40 million euros. However, as of now, no specific buyers or lease details have been reported.
Mayor Dieter Reiter (SPD) has expressed a desire for a resolution regarding the Alte Akademie in Munich "this year." The Free State of Bavaria is examining all legal options in connection with the existing hereditary lease contract, aiming to enable a sustainable investor solution within the insolvency proceedings.
The two creditor banks, Stadtsparkasse and BayernLB, were reportedly involved in the bidding race for the old academy. If the hereditary lease is abolished, it could potentially increase the number of potential buyers. However, the focus at the moment is on the insolvency process itself, with no active sales negotiations or new construction initiatives underway.
It's important to note that the situation is different for the Herzog Max project on Neuhauser Straße, a former Benko/Signa property but distinct from the Alte Akademie. The building has been transformed and opened as a new commercial space, with positive feedback from city officials. There is no ongoing or current speculation regarding hereditary lease abolition for the Herzog Max project.
As the Alte Akademie project remains in insolvency, the discussions about the hereditary lease continue. The future of this historical building in Munich's city centre remains uncertain, with hopes for a resolution in the coming months.
- The potential abolition of the hereditary lease for the Alte Akademie could attract more real-estate investors, potentially increasing the building's value by up to 40 million euros.
- In the insolvency proceedings of the Alte Akademie, the Free State of Bavaria is considering various legal options to enable a sustainable finance solution for a new investor.
- The future of the Alte Akademie building, a significant business asset in Munich, remains uncertain while the insolvency process continues, despite positive developments in other real-estate projects like the Herzog Max.
