Albertussee Düsseldorf a Story to Be Told
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A STORY TO BE TOLD ALBERTUSSEE DÜSSELDORF A STORY TO BE TOLD ALBERTUSSEE DÜSSELDORF TABLE OF CONTENTS OVERVIEW 3 4 EDITORIAL 10 STARTING POINT 12 TIMELINE 14 ASSET MANAGEMENT 22 SPECIAL FEATURE: HISTORY 24 PROJECT DEVELOPMENT 34 SPECIAL FEATURE: LOCATION 36 TRANSACTIONS 40 PANDION AG 42 SPECIAL FEATURE: PRESS 44 METRO PROPERTIES/METRO AG EDITORIAL FOREWORD 5 » WE STAND FOR RELEVANCE » UNCON VENTIONAL IN URBAN DEVELOPMENT. APPROACHES OFTEN WE HAVE A CLEAR VIEW OF LEAD TO INTERESTING THE FUTURE. « OPPOR TUNITIES. « JEAN-CHRISTOPHE BRETXA, Chief Executive Officer JÜRGEN SCHWARZE, Chief Financial Officer EDITORIAL FOREWORD 7 JEAN-CHRISTOPHE BRETXA AND JÜRGEN SCHWARZE WHY HAS METRO PUBLISHED A BROCHURE ON THE PROPERTY AT of life. In particular, the expansion of the city has ALBERTUSSEE? meant a change in living conditions in an urban JEAN-CHRISTOPHE BRETXA: The project shows in impressive fashion context. The “Living Concept at Albertussee” how our team has created a pioneering success story starting with the is based on the trend towards further urban takeover of a disused property. In the true sense of driving real estate expansion with a clear focus on the living space value, we have deployed precisely the type of professional expertise of tomorrow. We recognised, developed and which characterises our company: future-orientated asset management implemented the potential offered by the and sustainable project development followed by a successful transaction. property and have played a significant role in In this case, we have been able to demonstrate our expertise in an the densification and urbanisation of the city exemplary manner throughout the entire life cycle of the property. of Düsseldorf. JÜRGEN SCHWARZE: The success story of the property at Albertussee HOW DID THE “LIVING CONCEPT AT shows clearly that we made the right decision to focus the continuing ALBERTUSSEE” WORK OUT? development of the property on what is relevant for its location in the city of Düsseldorf, and to promote the transformation of former offices JÜRGEN SCHWARZE: The decision to pursue into residential property. From a company perspective, this is a fine the vision of the “Living Concept at Albertussee” example of creating virtual values by making the right decisions at the was our anticipation of the overall trend in right time. urban development. In our view, it is good to see how the interests of urban developers and the residents of Düsseldorf converge in this SO HOW DID THE VARIOUS STAGES OF THE DEVELOPMENT TURN project. At the same time, our successful OUT? portfolio management strategy has resulted in JEAN-CHRISTOPHE BRETXA: In the first instance, our company took significant added value for METRO AG. over the property for our own use. The idea at that time was to move our staff from the various office locations into a whole new working environment under one roof. One of the first external tenants was Stadtsparkasse Düsseldorf. Other occupiers followed including METRO House of Learning and our joint venture partner MEC METRO-ECE Centermanagement GmbH & Co. KG. In this context, we made every attempt to create an even more attractive environment for all our staff, right up to the point when we developed a trendsetting new vision for the future of the property. The principal focus was on the sustainability of the concept, combined with the idea of a residential development next to a lake, in close proximity to nature and offering a high quality 9 STARTING POINT KEY FACTS 11 1990 TAKEOVER The building complex at Albertussee bears all the hallmarks of its The building is not of a high specification and creator. Helmut Horten, the founder of the eponymous department offers no services such as a restaurant, canteen store chain, has been immortalised in the building itself with its double or a business-like reception. The infrastructure HH layout. The company Kaufhof, already part of METRO AG, gradually and amenity value are far from optimal. acquires the majority shareholding in its competitor Horten. As part of However, there is an approximately 4 hectare the takeover, the property at Am Albertussee 1 becomes part of the lake with green open space and adjoining METRO property portfolio. woodland. The publicly access ible area is AM ALBERTUSSEE 1 The recently completed building was intended to be the new company rather hidden, in poorly maintained condition headquarters of Horten, the department store operator. The building and is rarely used by the public. layout was designed for use by a single occupier. It is not possible to At this time, the location has no relevance subdivide the space and the building entrance situation is unfavour able. from an urban perspective and little positive The creation of self-contained areas as part of the change of use is also amenity value. In this context, there is little problematic. prospect of achieving a sustainable letting The letting of the property requires a significant number of comprom ises. situation. However, it is possible to let some areas of the property. Tenants include companies such as Siemens, Hochtief and the Stadtsparkasse Düsseldorf bank. However, these tenants are not wholly satisfied with the property. EXISTING PROPERTY AM ALBERTUSSEE 1 40549 DÜSSELDORF Year of Use type Gross construction Office building floor area 1989 – 1990 33,000 sqm Lettable area Site area 28,000 sqm 41,000 sqm No. of car No. of floors parking spaces 4 full floors 500 1 pitched roof storey KEY FACTS 13 OCCUPANCY REFRESHMENT 19 RATE: 100 % 19 Change of canteen Switch from classic operator in the conservative office MILESTONE existing building. building to a vibrant 26 There follows an in- Modernisation of the digital campus suc- ternal workshop with entrance area and cessfully completed. senior management. canteen, and the Milestone in internal opening of the coffee decision-making: the bar. LET’S GO go-ahead is given for 37 Positioning of the PROGRESS pre-development product on the STARTING POINT PROJECT 18 16 “FIVE2ONE” Start of a whole activity. market. Start of the 15 Poor amenity value, new process. two-stage bidding Creation of smart some building Discussion of visions process. office space and sections are in shell for the future of the contemporary and core condition. property. infrastructure. Part let with vacancy of around 13,000 sqm. 2016 2017 2018 PROJECT 2014 2015 DYNAMIC 2013 PEOPLE@WORK 38 PROCESS 2011 VISIONARY HANDS-ON 29 Compilation of TARGETED AT A total of 13 offers are 26 Initial representations METRO 25 CONCEPT wide-ranging docu- 25 THE FUTURE verified and analysed. MEC MOVES IN are made to the City TIMELINE 16 PROPERTIES Residential develop- mentation for the Initial feasibility In the second phase of 15 First positive signal of Düsseldorf plan- MOVES IN ment? Yes, residential urban development studies for the the bidding process, heralding new ning department. 350 staff occupy development! Initial design competition. change of use of five participants are impetus in the METRO PROPERTIES workspace, bringing calculations appear the property. granted access to the location. becomes the official life to the site and positive. Set of Phase of intensive digital data room. sponsor of a residen- lending the property sketches drawn up. highest and best use tial development ARCHITECTURAL renewed relevance. analyses commences. 29 project. COMPETITION SIMPLY THE Initiation and process- 39 BEST ing. Objective: Pandion AG is creation of a planning selected as the ideal framework for a resi- partner based on dential development. both quantitative and qualitative criteria. OPENING 17 OF THE HITTING THE “WASSERSTERN” 26 MARK FINALE CHILDREN’S DAY Mayor Thomas Geisel 39 The sale becomes NURSERY is enthusiastic about legally effective with Next important step the residential project the signature of the to making the loca- at EXPO Real in purchase contract. tion more attractive Munich and offers his Final step: the con- for employees. official support. cluding processing of the property’s transfer of ownership to the new owner. ASSET MANAGEMENT FROM THE IDEA TO THE PROJECT 15 » THE STARTING POINT WAS FRAUGHT WITH POTENTIAL DIFFICULTIES. TODAY ONE CAN REALLY SAY: THE PLACE IS BUSTLING WITH LIFE. THE REASONS FOR THIS ARE PROFESSIONAL EXPERTISE AND SENSITIVITY. THAT DEFINES US! « 2011 10/2011 STARTING POINT MEC MOVES IN The property at Am Albertussee 1 appears First positive signal: MEC moves into the abandoned at first glance. The external green property. The subsidiary of METRO and open space appears neglected. The existing ECE occupies 826 sqm office space at building is partly in shell and core condition Am Albertussee 1 and leases 25 car parking and there is no functioning infrastructure. The spaces. This new letting boosts activity and anchor tenant since 2001 is Stadtsparkasse lends new impetus to the location. Düsseldorf. Other temporary leases have not been extended by the tenants because of the lack of vitality and poor amenity value. Status Q3 2011: the property is part-let but there is a vacancy level of around 13,000 sqm, equating to around 43 % of the total lettable area. » STARTING THE PROJECT WAS LIKE DIVING INTO MEC. WHO IS WHO? MEC METRO-ECE Centermanagement GmbH & Co. KG is a subsidiary of METRO and ECE. MEC COLD WATER. « is responsible for the integrated management including the commercial and technical property KAY BUSSE, Head of Wholesale – Asset Management management, local centre management, letting and marketing of over 55 retail parks in Germany. ASSET MANAGEMENT 17 » PROJECT ‘FIVE2ONE’ WAS A HIGHLY PRAGMATIC DECISION. THE PRINCIPAL FOCUS WAS ADDING VALUE AT EVERY STAGE. « 2011/2013 03/2013 PROJECT “FIVE2ONE” METRO PROPERTIES MOVES IN “FIVE2ONE”. THE STORY BEHIND. Good workflow is critical. The new space Project “Five2one” involves the refurbishment of the Time to change: The relocation of METRO provides just the right type of environment.