CORESTATE has acquired the main part of the Trophy city quarter development “The Q” in Nuremberg for an institutional investment mandate from Bayerische Versorgungskammer (BVK). The property will be developed into one of the most modern urban districts in Germany by the Düsseldorf-based seller, Gerchgroup. The investment volume of this forward deal amounts to over EUR 300 million. Corestate is consistently expanding its new product focus on city quarters and intensifying its investment activities in the “core” segment. The Gerchgroup will complete the project starting next year and hand it over to the buyer after completion.
Frankfurt, September 18, 2020. CORESTATE Capital Group S.A. (Corestate), a leading independent real estate investment manager in Europe, has acquired the main part of the Trophy city quarter development “The Q” in Nuremberg for an institutional investment mandate from Bayerische Versorgungskammer (BVK). The property will be developed into one of the most modern urban districts in Germany by the Düsseldorf-based seller, Gerchgroup. The investment volume of this forward deal amounts to over EUR 300 million. Corestate is consistently expanding its new product focus on city quarters and intensifying its investment activities in the “core” segment. The Gerchgroup will complete the project starting next year and hand it over to the buyer after completion.
Lars Schnidrig, CEO of Corestate Capital Group: “This urban district development is currently one of the largest in Germany and is a good example of new types of use of city building sites in top locations in combination with the increasing demand for innovative mixed-use concepts for housing, infrastructure and commerce on the customer side. Here we develop sustainable and profitable investment solutions for our institutional clients on the basis of our excellent product access to large real estate projects in A-cities and our very broad experience in active asset management. Due to the megatrend urbanization and the associated densification in the metropolitan areas, the asset class of urban districts will continue to gain in importance and we will actively participate in shaping the modern living and working space in German cities with further exciting projects from our pipeline.”
“A sale of this magnitude in these turbulent times is proof that quality always prevails in the end and we are very pleased that we have succeeded in selling the first construction phase of this quarter development despite the circumstances,” said Marc K. Thiel, CEO of the Gerchgroup. The other building plots of the overall project with nearly 200,000 m2 of gross floor area that are mainly being developed for residential use, are also to be sold upon completion.
In total, the property, which for many years was the showcase location of the Quelle mail order company, comprises more than 51,000 m2 of rental space, of which the City of Nuremberg will rent approx. 42,000m2 for 25 years. The remaining space will be leased to retailers in the food and local supply sectors on a long-term basis. The completion of the project is scheduled for 2024, with around 2,000 residential, additional retail and gastronomy units and a day care center for children planned in three further construction phases.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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