Dusseldorf, Germany: For two decades, a large part of the former Gerresheimer Glassworks site in Dusseldorf has lain empty. That is about to change. Vastint, the European real estate investor and owner, and Hines, the global real assets investment manager, have acquired the Glasmacherviertel in Dusseldorf-Gerresheim through a joint venture. The partners plan to turn the roughly 193,000 m² site into a predominantly residential neighbourhood of approximately 1,600 to 1,800 apartments.
The site was used by the glassworks until 2005. Since its closure and extensive demolition, much of it has been left fallow. The current plan calls for a gross floor area of approximately 210,000 m², of which at least 80% is to be residential, with local retail, dining and social infrastructure alongside. Public green spaces are planned and the three historic buildings on the site are to be preserved. The neighbourhood will be built in several phases, and the design remains subject to the ongoing planning and approval process.
Vastint is pointing to its record of turning old industrial land into homes. "Glasmacherviertel is exactly the kind of long-term urban transformation Vastint is committed to. Drawing on our experience with projects such as Sugar House Island in London, Aire Park in Leeds and Riverview in Gdansk, where a former industrial site is being transformed into a sustainable residential neighbourhood, we look forward to working with Hines to create much-needed homes and a well-connected, mixed-use place that becomes a natural part of Gerresheim," said Claudia Lewin, managing director at Vastint Germany. "Because we take a long-term perspective, quality must shape every decision - from the homes and public spaces to the integration of the site's industrial heritage - so that the neighbourhood creates lasting value for residents and the wider community."
Hines frames the deal as a bet on housing scarcity. "With Glasmacherviertel, we aim to transform a site that has been lying fallow for many years into a new residential neighbourhood with approximately 1,700 apartments. Hines' conviction in the living sector is rooted in strong long-term fundamentals and a persistent housing shortage in many major European cities. Projects such as Glasmacherviertel allow us to translate that conviction into new housing supply at scale," said Benjamin Biehl, senior managing director at Hines. "For us, this project offers an opportunity to work alongside our partner Vastint and the city of Düsseldorf to transform a long-unused industrial site into a sustainable neighbourhood that creates needed housing and makes a lasting contribution to the development of the surrounding area."
What the announcement leaves unsaid matters to investors and developers. The purchase price, the vendor and the timetable are not disclosed, and nor is the cost of remediating a site with a heavy industrial past. It is also unclear whether the homes will be built to rent or to sell, and what share must be affordable under local planning rules. Those answers will decide the returns on a scheme that still needs planning approval. On the release's figures, at least 80% of 210,000 m² across about 1,700 homes works out at roughly 99 m² of gross floor area per home, a calculation of ours.
The site has a long planning history, with residential ideas first raised after the closure in 2005 and concepts refined several times since. Vastint was advised on the buy-side by BNP Paribas Real Estate, on tax by PricewaterhouseCoopers and on legal matters by Greenberg Traurig. Hines was advised on the buy-side by JLL, on tax by Ernst & Young and on legal matters by POELLATH and Friedrich Graf von Westphalen & Partner.
People mentioned
- Claudia Lewin, Managing Director, Vastint Germany
- Benjamin Biehl, Senior Managing Director, Hines
Companies mentioned
- Vastint, European real estate investor and owner, and joint venture partner
- Hines, global real assets investment manager and joint venture partner
- Gerresheimer Glassworks, former user of the site until 2005
- BNP Paribas Real Estate, buy-side adviser to Vastint
- PricewaterhouseCoopers, tax adviser to Vastint
- Greenberg Traurig, legal adviser to Vastint
- JLL, buy-side adviser to Hines
- Ernst & Young, tax adviser to Hines
- POELLATH, legal adviser to Hines
- Friedrich Graf von Westphalen & Partner, legal adviser to Hines
Image Source: Glasmacher S.a.r.l.
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