Proprium and Garbe launch urban industrial joint venture

Proprium capital partners, backed by Legal & General, and Garbe Insite have established a €500 million urban industrial joint venture targeting redevelopment and selective new‑build projects in urban locations across Germany and selected European markets. 

Garbe logistics

The partnership aims to build a portfolio focused on structurally undersupplied commercial space in major cities.

The joint venture completed its first acquisition on 29 September 2026, securing a 16,700 sq m site in Munich’s Bogenhausen district. Approximately 70% of the space is already pre‑let ahead of construction, including a long‑term lease with an established Munich technology company. The JV will invest around €75 million in the project.

Proprium will contribute the majority of the equity and its investment and transaction expertise, while Garbe Insite will provide development and asset management services across the portfolio.

Philipp Westermann, managing partner at Proprium, said: “Urban commercial space in central locations is structurally scarce, while demand from occupiers ranging from skilled trades and light production to R&D and last‑mile logistics continues to grow. With this joint venture, we are building a dedicated platform to capitalise on this trend. With approximately 70% of the space pre‑let before construction has even started, the Munich project is an ideal start.”

Martin Czaja, managing director of Garbe Insite, added: “We are bringing commercial activity back into the cities. After years of being pushed out of central locations, manufacturing businesses are regaining access to urban space as a result of the office market downturn. Our goal is to develop future‑oriented real estate solutions for tenants from commercial, tech and science sectors, while giving institutional investors access to the light industrial market.”

The JV acquired the site from tk accelis GmbH, part of thyssenkrupp. Existing office and warehouse buildings will be demolished and professionally recycled to make way for a 13,500 sq m hybrid commercial scheme offering production, storage, R&D laboratories, offices and staff facilities. The project targets DGNB Gold certification and will feature high‑spec fit‑out standards and enhanced security.

Demolition and site preparation will begin ahead of construction, which is scheduled to start in Q4 2027, with completion planned for late 2028.