HSH Nordbank AG has made available financing in a total volume of €39 million for the construction of the Postgalerie mall in Speyer, Germany. The latter is a GWB Immobilien project development for a new shopping center in downtown Speyer, a town located on the left bank of the Rhine.
The planned modern shopping center will have retail space on four levels, and is scheduled for completion in early 2009. The building, which will integrate existing historic structures, is laid out for a gross floor-space of 29,000 m² plus 18,600 m² in rental space. The loan funds made available by HSH Nordbank are earmarked for financing a total investment volume of €46 million.
"The retail property market manifests a very heterogeneous development, differentiated by individual types of operation. Its strategy has enabled GWB to develop a profitable growth niche. We expect that modern shopping centers in attractive downtown locations will be among the winners on the retail property market," says Claudio Lagemann, Global Head of Real Estate at HSH Nordbank. "Due to their location and the moderate new construction volume in this segment, tenant demand for this kind of mall is relatively stable, while the vacancy risk has remained comparatively low."
Source: HSH Nordbank