Ivanhoe Cambridge has acquired a 92.5% interest in the Düsseldorf Arcaden shopping center currently being built in the Düsseldorf district of Bilk. The transaction will represent an investment of some €173.5 million (CAD$249.3 million).
The construction of Düsseldorf Arcaden started in October 2006. The center is slated to open to the public in fall 2008. Management für Immobilien AG (mfi AG), Ivanhoe Cambridge's development and management partner in three other projects in Germany, will develop Düsseldorf Arcaden on behalf of the joint venture.
Düsseldorf Arcaden will be an important element in the overall concept of a full-fledged district development project aimed at revitalizing obsolete inner-city industrial lands. The overall concept will also comprise a district town hall, a community centre and a public swimming pool that will be built by the City of Düsseldorf. Furthermore, some 100 apartments and a large park are included in the project plans. Roughly 100 businesses, service companies, cafes, restaurants and fashion retailers, along with a large supermarket and consumer electronics store, are planned for Düsseldorf Arcaden. About 850 parking spaces will be created.
This is Ivanhoe Cambridge's fourth investment in Germany with partner mfi AG. Ivanhoe Cambridge entered the German market at the end of 2005, acquiring a 92.5% interest in Zwickau Arcaden and a 94.8% interest in Paunsdorf Center (Leipzig) as well as a 92.5% interest in Wilmersdorfer Arcaden, a project currently being developed in Berlin.
Source: Ivanhoe Cambridge