Investors flock to MS Riem

Synopsis of talk given by Gabriele Friderich, head of the municipality of Munich's department of urban affairs on January 30, 2001

The previous few years had brought a number of important advances. Located in the heart of MS Riem, the city's new fairgrounds have proven to be highly successful. The laying-out of the community's central park is proceeding rapidly. The sale of properties found in two of MS Riem's business parks went well, as companies rushed to secure plots. High-end office buildings are now being constructed on them.

Another example of the strength of demand: we are nearing the completion of the sale of all the 22 plots found in our northeast business park, which adjoins the Caspari Crescent. The park's total expanse is some 5.4 hectares-about one sixth of MS Riem's entire expanse of commercial property.

Our northwest business park is becoming highly popular with New Economy companies. Thanks to their interest, some 83% of the park's expanse has already been sold. Creditable bids have been submitted for the remaining 17%, consigned to two plots. The decision as to who gets the plots will be made during the course of the year by the commission charged with overseeing MS Riem's development.

Nemetschek AG and Lemo Elektronik became the first of the plots' purchasers to complete construction of their office buildings.

Demand for the northeast business park's plot has outstripped supply. This has led a number of companies to take options on the plots to become available in the park's extension.

Proving to be of especial interest are the plots adjoining the Olof Palme Straße. These are located in the community's geographic center, and cover a total of 11,000 square meters. These will produce some 33,000 square meters of usable space. The procedure governing the plots' sale will presumably be laid down by Munich's municipal council at its next meeting, scheduled for Wednesday.

MS Riem's features enable companies to get the maximum use out of their retailing, office or administration facilities. These features include great links to Munich's downtown and airport via the city's public transport and superhighway networks. These assets will be complemented by those forthcoming from Riem Arcades. Offering venues for culture and recreation, in addition to retailing, this complex will be completed in 2003.

The strong interest ensuing from the launching of this project's tender process details how positively Germany's real estate community views MS Riem.

Over the next 12 years, some 7,500 apartments and townhouses will be constructed in MS Riem. These will be homes to 16,000 persons. The first tranche of housing involves 2,300 housing units, for some 5,000 residents.

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