Bonava is selling 176 rental apartments in Cologne, Germany, to a fund of Bayer pension schemes. In addition, the production of 38 homes for consumers is being started in the same neighbourhood. The sold rental project will have a positive impact on cash flow in 2023–2025 and on the Group’s earnings in 2024–2025.
"Completing this transaction under the prevailing market conditions is a great indicator of our strength. We’re working hard to adapt our offerings according to the needs expressed by our customers and investors. In Cologne, we are starting a major cash flow-generating project thanks to our ability to switch from a consumer project to an investment project," said Peter Wallin, President and CEO of Bonava.
As previously announced, Bonava is currently prioritizing increasing its sales and cash flow in order to commence viable projects. In projects for investors Bonava regularly negotiate payment plans, which means that they generate a positive cash flow from the very beginning.
Cologne is currently one of the regions with the highest levels of activity. In the Simonsveedel area, Bonava is creating a neighbourhood containing approximately 290 housing units across six multi-family buildings with 166 associated parking spaces in two underground garages. Simonsveedel is an attractive location, with proximity to public transport, preschools, doctor’s surgeries, pharmacies and supermarkets. The neighbourhood will be part of the sharing economy, with options such as car and bicycle sharing. It is estimated that completion of the project and recognition in profit will occur in 2025.