Projects

Since being founded in 2012 Fiduciary Capital has acquired buildings located within or near the central ring road in Munich totaling 150.000 sqm (all in negotiated transactions without any participation of intermediaries) that are at various stages of development (i.e., in early 2016 a finished project totaling 35.000 sqm was sold). Fiduciary Capital directly let nearly 110.000 sqm in these buildings (90% without any participation of intermediaries).

Additionally, in early 2012 Fiduciary Capital was engaged with asset management services for a total of 75.000 sqm in Munich und 90.000 sqm in Dusseldorf (sold in 2013 and in 2014, respectively).

Finally, between 1999 and 2012 Michael Gerlich has acquired, (re-)developed, refurbished and/or repositioned major projects or assets totaling 70.000 sqm in Munich, between 1995 and 2012 totaling 200.000 in other metro regions.

Fiduciary Capital is currently developing buildings with a total area of 120.000 sqm in central locations in residential southern Munich that it owns together with German institutional investors.

Examples of Fiduciary Capital Projects from 2012

M-Park (Munich)

Estate of 60.000 m²
Office and Commercial Complex totalling 80.000 m²

Direct acquisition (without any intermediaries) of a 15-acre estate with 11 buildings and over 860.000 square feet of predominately office space. The estate is embedded in a residential area near the Isar and the Mittlere Ring in a fast-growing residential district in southern Munich. An underground station is located directly on the site and a connection to Marienplatz, the city’s heart, takes less than 10 minutes. The fast train and the Bavarian cross-country train station is only 5 minutes away. The nearly fully-let complex features a strong tenant base including ASM Pacific Technology, Beckman Coulter and Nanoscape AG and offers additional significant potential in the medium term.

M-Suites (Munich)

Office Complex Redevelopment
35.000 m²

Direct acquisition (without any intermediaries) of a vacant office complex totalling 35.000 m² in a commercial area near the middle ring road in southern Munich that Fiduciary Capital expected to be able to help transform towards residential. It has been developing into a fast-growing residential area since acquisition. Fiduciary Capital developed a redevelopment concept with internal architects and engineers that encompasses the core and shell refurbishment of the buildings and the construction of attractive and highly efficient student and micro appartments – highly sought after uses in Munich. Until the project’s realization Fiduciary Capital directly let (without any intermediaries) the buildings to a high credit tenant for the medium term. The building permit has been achieved and the project is being realized. The buildings are being certified LEED Platinum.

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M-Tower (Munich)

Office Complex Redevelopment
35.000 m²

Direct acquisition (without any intermediaries) of a vacant office complex totalling 35.000 m² in a commercial area near the middle ring road in eastern Munich that Fiduciary Capital expected to be able to help transform to an established office market. It has been developing into a fast-growing and sought after office area since acquisition, especially since the area has been prioritized for development by the city in early 2016. The foreign seller was insolvent and the finanzing bank had significant trouble to sell or lease the delapidated asset.

Fiduciary Capital negotiated a transaction with the bank for 2 years before the complex ownership and financing structure was cleaned up and a secure transaction was enabled. Furthermore, the asset was in a complex entitlement situation: Half a dozen neighbors had a large number of significant easements and encombrances on the site that prevented the development of an efficient scheme. Fiduciary Capital was able to agree agreements with all neighbors to delete or ammend these rights so that the redevelopment concept, that Fiduciary Capital had developed with internal architects and engineers, could be realized. Fiduciary Capital’s concept encompasses the core and shell refurbishment of the tower building and the demolition of the highly-inefficient and badly-lit low-rise buildings. These are being replaced with an underground carpark and well-lit new buildings that integrate into the existing tower, thereby creating highly efficient floorplates of up to 2.000 m², a unique selling point in Munich’s central office market. In a very short time Fiduciary Capital was able to procure directly (without any intermediaries) the acquisition and development debt financing and subsequently the necessary equity partner to complete the transaction in July 2014.

Only a few months later Fiduciary Capital, together with external architects, completed and submitted the building permit that was achieved within an unusually short period given its complexity. Futhermore, Fiduciary Capital was able to achieve an increase of the envelope leading to 20% more lettable space as well as a pre-agreement with an anchor tenant, the global advertising agency Publicis, for 50% of the buildings. All tender packages were fully completed and those that were awarded by Fiduciary Capital were singificantly below budget. In 2015 Fiduciary Capital also achieved the DGNB Gold green building certification for the scheme. Fiduciary Capital‘s hard work and significant value creation over a very short time led to the U.S. equity partner wanting to realize the investment ahead of schedule through a sale of the finished project to a German institutional investor. The successful sale was completed in early 2016, only 18 months after the acquisition. The institutional buyer has rebranded the project and is finishing the construction.

Event 2015 »

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Examples of Michael A. Gerlich’s (MAG) Projects / Fiduciary Capital until 2012

Central Tower (Munich)

Office Complex Development (1999 at Lend Lease) and Redevelopment (2009 at Rockpoint)
25.000 m²

Direct acquisition (sourcing by MAG without any intermediaries for sole ownership and principal development at LL)

Change of zoning, securing entitlement, achieving unconditional building permit

Ground-up development (100% at LL) / redevelopment (50% at RP; together with the same architects from the Atrium redevelopment)

Lease-up of the development / redevelopment (together with the same Munich main leasing agent from the successful lease-up of the initial development as well as the M-Tower and Atrium projects)

Sale to a German institutional Investor

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Atrium Office Complex (Munich)

Office Complex Redevelopment (2006 at Rockpoint)
50.000 m²

Direct acquisition (sourcing by MAG without any intermediaries for sole ownership and principal redevelopment at RP)

Increase entitlement and change of use (additional 20% of the rentable area, double the parking), achieving unconditional building permit

Redevelopment including the construction of additional floors (together with the same architects from the Central Tower redevelopment)

Lease-up of the entire redevelopment (together with the same Munich main leasing agent from the M-Tower and Central Tower projects)

Sale to a German institutional Investor

KÖ-Quartier (Dusseldorf)

Office Complex Redevelopment (2010 at Rockpoint)
90.000 m²

Direct acquisition (sourcing by MAG without any intermediaries for sole ownership and principal redevelopment at RP)

Project design and development (together with the same architects from the E11 redevelopment (500m nearby) a few years earlier; see below)

Lease-up (together with the same Dusseldorf main leasing agent from the E11 project)

Sale to a German institutional Investor

E11 am Kaiserteich (Düsseldorf)

Office Complex Redevelopment and Development (2008 at Rockpoint)
20.000 m²

Direct acquisition (sourcing by MAG without any intermediaries for sole ownership and principal redevelopment at RP)

Increase entitlement and change of use (additional 20% of the rentable area), achieving unconditional building permit

Project design and development (together with the same architects from the KÖ-Quartier project (500m nearby) a few years later)

Lease-up (together with the same Dusseldorf main leasing agent from the KÖ-Quartier project)

Sale to a German institutional Investor

ERH (Berlin)

Office Complex Redevelopment and Development (2008 at Rockpoint)
30.000 m²