HSH Nordbank to finance GWBs purchase of Lübeck shopping center (DE)

HSH Nordbank AG will finance GWB Immobilien AG's purchase of the 'Königpassage' shopping center in Lübeck. The loan amounts to about €32 million. The property has nearly 15,000 m² of floor space and is thus the largest shopping mall in the center of Lübeck. It was opened in 1994 and has up to now been managed by ECE.

Königpassage in
Lübeck, Germany.

GWB Immobilien AG, based in Siek near Hamburg, was established in 1992 and has been marketlisted since October 2006. GWB has specialized in planning, developing, building and leasing retail space, focusing on shopping centers and real estate with specialist stores in medium-sized cities and smaller towns. GWB has completed about 50 projects since it was established. In addition to selling developed properties on, the company also plans to accumulate a property portfolio of its own. GWB thus intends to purchase more existing shopping centers as well as to update them and optimize the tenant structure.

"GWB has occupied a growth niche in the retail property market in which it operates very profitably," said Claudio Lagemann, head of HSH Nordbank's real estate business. "We are pleased to be able to assist this ambitious real estate company on its expansion course."

Although the German retail market as a whole is forecast to register flat sales over the long term, Lagemann explains that, "Within this market, shopping centers that combine various types of business under one roof will be among the winners." He said that there is steady demand for such shopping centers and, because of just a moderate number of new ones being built, little medium-term threat of an increase in vacancy rates. However, there is need especially for the layout and types of stores in older shopping centers to be updated to increase their appeal.

Source: HSH Nordbank

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