A NEW LANDLORD FOR GERLING QUARTER
Immofinanz Group takes over Frankonia’s interest in joint venture
Gerling Quarter has long since moved from the planning to the building phase. “The project is well on its way”, said Uwe Schmitz, chairman of Frankonia Eurobau AG. It will continue to take shape as planned, assures the developer who yesterday handed over full responsibility for the success of the project to their former partner Immofinanz Group, which is located in Vienna. Up to now both companies had an equal partnership in the joint venture.
Following a management restructuring Immofinanz Group’s new strategy is to either sell their interest in such joint ventures or to take over complete control, explained a spokesperson for the company. The final price of the takeover of Frankonia’s share has not been revealed. Uwe Schmitz emphasised that he had developed the project with a lot of personal involvement, commitment and passion. In so doing he had kept a constant eye on the quality of the development, from an architectural and town planning point of view. He is confident that Immofinanz will continue to develop the project alone to the same standards.
“The planning is sewn up, financing is completely secure and Immofinanz will prove themselves to be faithful to their contract partners such as the buyers, the architects, and the city”, said Schmitz. Eduard Zehetner head of Immofinanz reiterated that point, “We are aware of our responsibility to the city of Cologne, to the future apartment owners and of course to our investors.” Therefore the company will put everything into swiftly and successfully completing the new development.
Immofinanz Group, which is listed on the stock exchange, owns more than 1,820 properties at present, according to several sources, at a total value of around €10.36b. The remaining investment in the quarter runs to around €213m and will be put up by Immofinanz themselves and the Bank Sparkasse KölnBonn.
Frankonia’s Cologne team will now concentrate on the development of a similarly ambitious city development, Andreas Quarter in Düsseldorf. This project is also a former joint venture between the two companies, but in this case Immofinanz pulled out.
6 September 2012