Corestate, a leading independent investment and asset management company for real estate and related financing solutions, has acquired the inner-city quarter development Laurenz Carré in a prime Cologne city location directly next to the cathedral for an institutional client from the Düsseldorf-based project developer Gerchgroup AG.
Frankfurt, 21 December 2021 – Corestate, a leading independent investment and asset management company for real estate and related financing solutions, has acquired the inner-city quarter development Laurenz Carré in a prime Cologne city location directly next to the cathedral for an institutional client from the Düsseldorf-based project developer Gerchgroup AG. The company is thus consistently expanding its new product focus on urban districts and intensifying its investment activities in this core segment. Gerchgroup will continue to plan, realise and hand over the entire project on a turnkey basis. The transaction was concluded in the form of a forward deal and comprises two sub-projects for the mixed-use property with completion at the end of 2023 and the end of 2024 respectively. Corestate was involved in the financing of the project at an early stage via HFS and has accompanied the process ever since. In addition, Corestate Bank advised Gerchgroup on the most recent refinancing.
Corestate is seeing increasing demand from its clients for innovative mixed-use concepts and neighbourhood solutions for residential, commercial and infrastructure and is looking to further expand its market position in the urban neighbourhood segment with Laurenz Carré. In 2020, for example, the company had acquired the main section of the trophy quarter development “The Q” in Nuremberg. The seller was also Gerchgroup AG. The transaction is also an excellent example of Corestate’s holistic business model of offering the full range of products and services on the real estate equity and real estate debt side. The company accompanies projects throughout their entire life cycle and can, for example, provide loans for preparation and purchase through its subsidiary HFS, advise on all aspects of refinancing with Corestate Bank and act as investor as well as investment, asset, fund and property manager.
Tobias Gollnest, CIO DACH at Corestate: “The Laurenz Carré is an absolute showcase project with an urban character for the centre of Cologne. It combines very different types of use in a convincing way and is emblematic of the urbanity of the future, which offers new attractive possibilities for working and living together. Gerchgroup AG is the ideal partner for us to implement such a complex project because we are building on an already successful and professional joint business history. This is particularly important for us, as high expectations are placed on the realisation of the Laurenz-Carré from many sides – whether it’s the city, residents, business neighbours or also new tenants and, last but not least, our customers.”
“After another year dominated by corona, we are of course very pleased that we have been able to sell one of our premium projects directly at Cologne Cathedral in the form of a forward deal. This is hardly a matter of course at the moment, but clearly shows that premium products, such as the Laurenz Carré, are still in demand and that we are still in a functioning market. This is also shown by the fact that, in addition to Corestate, we were repeatedly approached by other potential investors about an early forward deal. After Corestate acquired our neighbourhood development The Q in Nuremberg in the summer of 2020, I am particularly pleased to be able to continue the previous trusting and harmonious cooperation with Laurenz Carré,” emphasized Marc K. Thiel, Board member for Transactions at Gerchgroup AG.
With around 26,000 m² of gross floor space, Laurenz Carré will be an ultra-modern and future-proof urban quarter with a balanced tenant and use mix. The office space, which is aiming for LEED Gold certification, will comprise around 11,000 m², while the retail and restaurant space will be over 2,200 m². In addition, there will be a hotel complex with 265 rooms, which is scheduled to open at the end of 2023 as the Radisson RED Cologne Hotel. The listed building of the former Senate Hotel (southern sub-project) will account for 171 rooms and a new building (northern sub-project) for another 94 rooms. The internationally renowned operator has signed a lease agreement for a term of 25 years. The new building in the northern sub-project, which is expected to be completed by the end of 2024, will stand out due to its direct location on the Domplatte with an unobstructed view of the cathedral and, in addition to the hotel, will offer modern office space that can be flexibly divided and will be one of the best addresses in Cologne. A green roof terrace as well as high-quality retail and gastronomy areas round off the entire ensemble.
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 830 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 and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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