Instone Real Estate has entered into a definitive agreement with Sontowski & Partner Group to acquire the residential property development activities pooled in S&P Stadtbau. With the acquisition, the company will also strengthen its platform by adding 20 experienced professionals to its team. In addition to the regional platform, it will also be acquiring 6 existing project developments as part of the transaction. Two of these projects will be mixed-use urban quarter developments, where Instone will take over the development of the residential sections, while S&P Group remains responsible for the commercial parts. In total, the projects involve the development and construction of around 1,000 residential units over the coming years, with an anticipated total sales volume of €300m.
Kruno Crepulja, CEO of Instone Real Estate, explained: "Through this transaction, we have succeeded in expanding into a new and strategically important region. At the same time, we are adding an established and experienced management team with first-class development expertise to our platform. With the S&P Stadtbau activities, Instone is acquiring one of the premier property developers in the rapidly growing metropolitan region of Nuremberg; one that realises complex residential properties through the entire value chain. We are also complementing our existing activities in the greater Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart areas.“
Klaus-Jurgen Sontowski, Managing Partner of Sontowski & Partner Group, added: "With Instone, we have found the ideal long term partner for continued expansion of the residential property development activities. The S&P Stadtbau team has performed outstanding work here in the region and, going forward, will continue to create fresh impetus as part of a national champion, operating on a nationwide scale".
"This will immediately enable us to implement sustainable urban quarter developments in locations we did not previously operate in. As a result, we are now in a position to contribute to the creation of urgently needed living space in a dynamic growth region", said Crepulja.