Corestate, BVK buy mixed-use property project in Nuremberg for €300m

Corestate, BVK buy mixed-use project in Nuremberg, Germany for €300m
Image : Courtesy of Gerchgroup

European real estate investment manager CORESTATE Capital Group S.A. (Corestate) has acquired The Q, a mixed-use property project in Nuremberg, Germany, on behalf of client Bayerische Versorgungskammer (BVK), for over €300 million.

The mixed-use property will be developed into one of the most modern urban districts in Germany by the Düsseldorf-based seller, Gerchgroup. The company will complete the project starting next year and hand it over to the buyer after completion.

“This urban district development is currently one of the largest in Germany and is a good example of new types of use of city building sites in top locations in combination with the increasing demand for innovative mixed-use concepts for housing, infrastructure and commerce on the customer side. Here we develop sustainable and profitable investment solutions for our institutional clients on the basis of our excellent product access to large real estate projects in A-cities and our very broad experience in active asset management. Due to the megatrend urbanization and the associated densification in the metropolitan areas, the asset class of urban districts will continue to gain in importance and we will actively participate in shaping the modern living and working space in German cities with further exciting projects from our pipeline,” said Lars Schnidrig, CEO of Corestate Capital Group.

“A sale of this magnitude in these turbulent times is proof that quality always prevails in the end and we are very pleased that we have succeeded in selling the first construction phase of this quarter development despite the circumstances,” said Marc K. Thiel, CEO of the Gerchgroup. The other building plots of the overall project with nearly 200,000 m2 of gross floor area that are mainly being developed for residential use, are also to be sold upon completion.

In total, the property, which for many years was the showcase location of the Quelle mail order company, comprises more than 51,000 m2 of rental space, of which the City of Nuremberg will rent approx. 42,000m2 for 25 years. The remaining space will be leased to retailers in the food and local supply sectors on a long-term basis.

The completion of the project is scheduled for 2024, with around 2,000 residential, additional retail and gastronomy units and a day care center for children planned in three further construction phases.