Essen / Dortmund, 17 December 2018: Instone Real Estate is positioning itself prominently in Dortmund: By acquiring a plot of around 17,200 square metres, the listed residential developer just secured a project that could potentially deliver a gross floor area of around 30,000 square metres. The property is part of Dortmund’s Gartenstadt district and thus lies in one of the finest areas of this Ruhr metropolis. The plot was sold by an affiliated company of Immowerk GmbH. Immowerk, who retains a non-controlling interest, supports the plans of Instone Real Estate for a neighbourhood development. The parties to the contract agreed not to disclose the purchase price.
Instone puts the anticipated sales volume at a total of approximately EUR 100 million and expects construction work to start in 2021. The neighbourhood development will start directly with the drafting of the planning consent.
Andreas Gräf, CDO of Instone Real Estate, commented the move to expand in Dortmund with the words: “We see a lot of potential in this location. We are planning to deploy our experienced North Rhine-Westphalia team to make a noticeable difference on Dortmund’s housing market with a large-scale but well-considered neighbourhood development. The growth strategy that we pursue as a leading listed residential developer is perfectly complemented by this acquisition.”
With a population of more than 600,000 today, Dortmund is the third-largest city in North Rhine-Westphalia. As one of the two core cities of the Ruhr area, it has seen robust population growth (+3.9% since 2012) in recent years, yet the persistently positive growth forecast coincides with a rather strained residential property market. Given the price increases and the low residential vacancy rate of 1.8%, according to the city’s housing market report, the City of Dortmund has set itself the goal of raising around 2,000 new flats per year. So far, it has fallen short of the mark.
Stefan Dahlmanns, Head of the Instone branch North Rhine-Westphalia, said: “With our project in Dortmund-Gartenstadt, we have positioned ourselves in one of the most sought locations in the immediate vicinity of the town centre. We are planning to pursue a holistic neighbourhood development with the focus on residential use that picks up on the special urban-planning character of the ‘greenbelt’ Gartenstadt while developing it further along the lines of present standards.”
Instone Real Estate
c/o RUECKERCONSULT GmbH
Tel.: +49 (0)30 284498747