Essen / Stuttgart, 21 December 2018: Instone Real Estate, one of Germany’s leading residential developers, and Bayerische Versorgungskammer (BVK), Germany’s largest public-law pension scheme, are pooling their residential construction capacities for a neighbourhood development in Stuttgart. Instone is raising the “Stuttgart City Prag – Wohnen im Theaterviertel” project in a central location close to downtown Stuttgart. Before the construction work has even started, the 250 residential units - including 24 rent-controlled flats - with a combined living space of around 18,000 square metres were acquired by BVK for its superannuation funds. The transaction will take the form of an asset deal. The parties to the contract agreed not to disclose the purchase price.
Christoph Geirhos, Head of Real Estate Investment for the D-A-CH region (Germany, Austria, Switzerland) at Bayerische Versorgungskammer, said: “Our residential portfolio is perfectly complemented by the 250 units at the Pragsattel site in Stuttgart. The strong housing demand in Stuttgart, the attractive location, the well-considered concept plus the trust-based and proven collaboration with Instone persuaded us to invest in this project early on.”
Instone and BVK are already connected through a large-scale neighbourhood development in Bonn. At the “west.side” area in Bonn, Instone is developing around 550 flats, of which BVK acquired 275.
Andreas Gräf, CDO of Instone Real Estate, commented on this next collaboration of the proven two partners in Stuttgart as follows: “For us, the trust that Bayerische Versorgungskammer has put in us as residential developer by acquiring these 250 units before construction has even started is considered as an important confirmation of our strategy and of our masterplan at the Pragsattel location in Stuttgart. The future residents of the quarter will benefit from this high-quality partnership more than anybody else.”
In addition to the residential part, Instone’s “Stuttgart City Prag” project on a plot area of around 8,700 square metres includes an office property, a daycare facility and 262 underground parking spots. Instone already obtained the building permit for the project. The residential developer is planning to kick off the construction work in spring of 2019 and to complete the project on schedule by 2022.
For the residential sector, Stuttgart counts among the most sought and simultaneously the most strained markets anywhere in Germany. A survey of condominium price hikes over the past five years conducted by the Engel & Völkers estate agency puts Stuttgart in the top spot of the resultant city ranking, ahead even of Berlin. Since 2012, Stuttgart’s population has grown by around 6.6 percent. According to several forecasts, the city is expected to maintain this growth pace while its residential vacancy rate will stay extremely low and its building activity will remain unable to cover the demand for housing.
Instone Real Estate
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