Instone Secures Three Further Property Developments and Increases Total Project Portfolio to c. 4.5 Billion Euros

New plots in Norderstedt near Hamburg, Hanover and Potsdam /// Sales volume of the recently added projects expected to total c. 265 million euros /// Potential for the development of around 680 new flats /// Instone thus strengthens its growth strategy

Essen, 21 January 2019: For Instone, a listed German residential developer, the 2019 year in real estate started exactly where 2018 had left off—with the expansion of the property development pipeline and with the successful resumption of the growth trajectory. Just before the end of the year, Instone acquired a property in Potsdam with a plot area of more than 10,000 square metres and secured a development project in Hanover with a plot area of around 22,000 square metres. These acquisitions have lately been supplemented by the notarisation of the deed for a new-build construction project in Norderstedt near Hamburg with a plot area of around 20,000 square metres.

Instone projects a combined sales volume of c. 265 million euros for the three projects just acquired. The development potential adds up to around 680 flats. The parties to the contracts agreed not to disclose the respective purchase prices.

The most recent additions have pushed the total sales volume to be expected from the entire approved project portfolio of Instone Real Estate up to c. 4.5 billion euros. Since the beginning of 2018, projects with a volume of more than 1.2 billion euros have been acquired – including an already communicated major project whose execution is still subject to a condition subsequent.

Kruno Crepulja, CEO of Instone Real Estate, commented: “In an exciting market environment, we succeeded in securing attractive new property developments in cities with positive demographic forecasts. This means that we put our plans for our company’s further profitable growth on solid footing. The communicated target for the year 2018 of acquiring projects with a future sales volume of between 900 million and 1 billion euros was even exceeded by Instone.”

In terms of their regional economy and demographics, the data and forecasts for the three cities in northern and eastern Germany are very positive on the whole. Norderstedt is part of the greater Hamburg metro area and the fifth-largest city in Schleswig-Holstein with a current population of nearly 80,000 residents. The city’s demographic growth during the period beginning in 2014 and ending in 2030 is predicted to equal eight percent. (Source: Gertz Gutsche Rümenap) Just as auspicious is the demographic trend in the Hanover region. With its population increased by 4.5 percent since 2011, the region is now home to over 1.14 million people. At 103.1, the purchasing power ratio of Hanover exceeds the national average (100), according to the State Office for Statistics of Lower Saxony. Another city that benefits from the economic growth is Potsdam, where a positive demographics coincides with a declining vacancy rate (1.5 percent), according to the statista online statistics portal.

 

 

Press Contact
Instone Real Estate
c/o RUECKERCONSULT GmbH
Michael Lippitsch
Wallstrasse 16
D-10179 Berlin
Tel.: +49 (0)30 2844987­47
Fax: +49 (0)30 2844987­99
E-mail: instone@rueckerconsult.de