On September 5, 2012 IMMOFINANZ Group acquired the remaining stake in the Gerling Quartier real estate development project from the co-owner FRANKONIA Eurobau AG and is now the sole owner of this project. The transaction reflects a mutual agreement by the two partners to dissolve their 50:50 joint venture for strategic reasons.
The parties have agreed not to disclose any information on the price for this purchase. The remaining investment of approx. 213 million will be provided as planned by IMMOFINANZ Group as the investor and Sparkasse KölnBonn as the financing bank. Following the cornerstone ceremony in October 2011, construction is now in progress.
"Since our strategy calls for the sale or full takeover of investments that cannot be consolidated, we welcome the readiness of our partner FRANKONIA to sell its stake in the Gerling Quartier after the successful completion of project planning and the issue of building rights", commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group.
"When you stand on the historic grounds of this impressive construction site, one thing is clear: this project is genuinely unique. We are well aware of our responsibility to the city of Cologne, the future owner of the apartments, and, of course, our responsibility to our investors. For these reasons, we will do everything in our power to complete the Gerling Quartier quickly and successfully."
Uwe Schmitz, Chief Executive Officer of FRANKONIA Eurobau AG explained: "FRANKONIA Eurobau is proud of its successful project development work. IMMOFINANZ will now implement FRANKONIA's planning in Cologne in a way that guarantees the high premium standard for which FRANKONIA apartments are known."
The Gerling Quartier is the third largest inner city quarter development project in Germany. A wide-ranging offering will be built here by the end of 2014: On the former headquarters of the Gerling Insurance Group, 139 condominium apartments with 60 to 370 m² of space plus 45,000 m² of office and other commercial areas will be constructed on 94,000 m².
The focal point will be formed by the Gereonshof with a 14-story high-rise building. An Italian-style fountain will create an attractive flair, while trees and green areas between the old and new buildings will provide for a refreshing environment.