Following the turbulence at Hirmer-immobilien, what will the family's future look like over the next century?
The Hirmer Group, a family-owned company with a rich history dating back to 1914, has announced its withdrawal from the real estate business. As part of this decision, the Hirmer main building in Munich's bustling pedestrian zone is up for sale.
This iconic property, known for its distinctive facade and approximately 9,000 square meters of sales area spread over six floors, has been a staple of the city's retail landscape for over a century. Regular customers come from Munich itself, as well as from the surrounding area and sometimes even from Hamburg.
The building has been a showcase for high-quality men's fashion, serving as a testament to the Hirmer Group's commitment to its core business. In recent years, the company has invested significantly in the renovation of the main building, ensuring its continued appeal to customers.
The real estate market has been challenging, with increased construction and maintenance costs, high bank interest rates, and industry-wide challenges taking their toll. Despite these difficulties, the Hirmer Group has managed to maintain the profitability of the fashion trade within the building. Gerhard Kraenzle, the managing director of the trading division, has stated that the fashion trade is very profitable and aims to become even more so.
If the main building is sold, the fashion trade would remain as a tenant. The Hirmer Group intends to focus solely on its core business, the trade in men's fashion. No specific future tenants or redevelopment plans have been announced yet, but the withdrawal signals a shift away from holding and managing real estate assets directly by Hirmer.
Christian Hirmer, a shareholder in the company, has announced his retirement, effective mid-2026. Gerhard Kraenzle, the managing director, refers to the "Dallmayr effect," describing the building as radiating outwards, a testament to its impact on customers.
The flowers and Christmas decorations on the facade of the building are intended to continue shining on the Kaufingerstraße, adding to the city's festive atmosphere. Currently, approximately 300 employees, including around 260 sales staff, are employed in the main building alone.
As the sale of the Hirmer main building progresses, more details about the future of this iconic property will likely emerge. For now, the key point is that Hirmer plans to divest the property as part of its strategic withdrawal from real estate investments, focusing instead on its core business of men's fashion retail.
- Amidst the strategic withdrawal from real estate investments, The Hirmer Group is planning to focus solely on its core business, which is the trade in men's fashion.
- Although the Hirmer main building, known for its iconic facade and vast sales area, is up for sale, the fashion trade within the building will continue as a tenant.
- The real-estate market fluctuations, including increased costs, high bank interest rates, and industry-wide challenges, have led the Hirmer Group to reassess its investments, shifting their attention to financing and developing their primary business in finance, men's fashion.
