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 » UNCONVENTIONAL­ IN URBAN DEVELOPMENT. APPROACHES­ OFTEN WE HAVE A CLEAR VIEW OF LEAD TO INTERESTING THE FUTURE. « OPPORTUNITIES.­ «

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 access­ible 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 unfavour­able. 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 compromises.­ 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. office space in the existing building. A friendly and ­PROPERTIES from METRO Campus to Albertussee METRO PROPERTIES staff from five different contemporary working environment is achieved is completed over a very short period; 350 staff office locations at the METRO Campus are through manageable and intelligent investment are relocated to their new offices. This results in relocated to one office building. and up-to-date planning. At the same time, the a further significant increase in activity at the METRO PROPERTIES staff are caringly introduced location and lends the property renewed relevance. to their future office location. The interdisciplinary project team produces a requirements profile in cooperation with the staff members and organises visits to their new offices. 12/2013 OPENING OF THE “WASSERSTERN” CHILDREN’S DAY NURSERY

The “Wasserstern” children’s day nursery opens its doors. The nursery comprises six classes, one entrance and a large external play area and is located on the ground floor of the building. It is ­intended not only for the use of METRO PROPERTIES staff and employees of MEC and ­Stadtsparkasse Düsseldorf, but is also available to local residents and staff of other companies located in Heerdt, and is a clear commitment to a harmonious neighbourhood environment. Guests at the opening include Mayor Dirk Elbers, and the presence of invited members of the press brings ­favourable publicity.

» SUSTAINABLE VALUE CREATION IS A PROCESS OF BRINGING A WIDE VARIETY OF FACTORS ­UNDER A COMMON DENOMINATOR, AND AS SUCH MUST BE CLEARLY DEFINED. « ASSET MANAGEMENT 19

2014/2015 2017 2018 PROGRESS REFRESHMENT FINALE

The occupancy rate increases, as expected. This prompts further com- Further projects for the upgrade of the The sale process begins in the first quarter mitment to the letting process. The range of projects includes targeted ­building and an improvement in tenant of 2018. The Asset Management department investments in the energy efficiency of the building. At the same time, ­satisfaction are developed and implemented. ­supports the transaction with the creation the process gains momentum with the development of visions for the These include the change of canteen operator of the virtual data room and operation of the future of the property. together with the construction of a contem- Q&A process. The owner-operated property porary cafeteria area and the opening of a company Pandion AG wins the competitive coffee lounge. This is followed by the refresh- bidding process. The deal is closed in Septem- » WE ACHIEVED THE FINAL ment and modernisation of the entrance area ber 2018 at a sale price of EUR 56 million. The as a more effective central welcoming point new owner’s cash flow is secure until vacant STEPS OF OPTIMIZING THE within the complex. possession of the property is obtained in 2020 EXISTING COMPLEX WITHIN » HOTEL? DATA CENTRE? SUDDENLY IT ALL SEEMED thanks to the superb letting situation which is A TIGHT BUDGET. THE ­POSSIBLE. ANYTHING JUDGED TO BE SUB-OPTIMAL WAS a major aspect reflected in the price negoti­ ations. The Asset Management department ­ABILITY TO RELY ON RESET AND RETHOUGHT. A REALLY EXCITING PHASE! « accompanies the transfer of ownership of the IN­ TERNAL­ EXPERTISE AND property to the new owner. All processes are THE INVOLVEMENT OF OUR 2018 completed smoothly: The good relationships OWN PLANNING SERVICES OCCUPANCY RATE: 100 % with the tenants mean that the vacation of the complex by the individual occupiers is already FACILITATED A HIGH LEVEL The building is fully let. In addition to the agreed and tailored to the planned vacant OF COST ­CONTROL. « 2016 anchor tenants METRO PROPERTIES and possession of the complex in 2020. Stadtsparkasse Düsseldorf, the building is now MILESTONE occupied by many small but highly active companies including real.digital, METRO This phase is an intensive collaboration between the Asset Management Markets and METRO House of Learning. and Project Development departments. A wide range of potential use There is also an electric car charging station scenarios are investigated and analysed as part of a detailed feasibility and a Car2Go station on-site. The switch from and profitability study. Any idea judged to be unsustainable over the classical conservative office complex to vibrant longterm is discarded. There is a special focus on the immediate vicinity digital campus is successfully completed. and its relevance within an urban development context. This results in the concept of a residential development being clearly established by 2016. There is a successful presentation of the “Living Concept at Albertussee­ ” to senior management. This results in the go-ahead for the application to amend the planning framework. » OUR STATED OBJECTIVE WAS TO PREPARE THE PROPERTY BEFORE THE START OF MARKETING. WE ACHIEVED THIS AT EVERY STAGE. « BEFORE AFTER SPECIAL FEATURE: HISTORY RETROSPECTIVE 23

ALBERTUSSEE IT’S ALL ABOUT PROGRESS

The history of the Albertussee lake goes back to 1884. The site at At the suggestion of the civic association, Heerdter Lohweg is occupied by H. Reinartz Zementwarenfabrik which the remaining landscape is renamed Heerdter produces cement panels and pipes in the area currently occupied by Hofgarten after the takeover of the site by the Am Albertussee road. One of their principal clients is Düsseldorf METRO AG. City Council. This means that the construction materials from the The water-based nature protection area with ­Albertussee area are also used for the regeneration, maintenance the approximately 3.50 metre deep lake is AM ALBERTUSSEE 1 and reconstruction of parts of the city itself. now maintained by the ASV-Albertussee e.V. The company’s own dredging lake covers an area of 8 hectares and Düsseldorf Heerdt angling club. The objective stretches from Heerdter Lohweg to the Am Heerdter Hof road. The of the ASV club is to nurture and maintain the construction of Brüsseler Straße and subsequent landfill gradually lake and protect its flora and fauna, together reduces the area of the lake by around 50 %. Large areas of the works with the conservation of the banks as green site are sold in 1979. One of the investors is the former Horten AG. open space. Major efforts are required to retain the lake.

Source: City of Düsseldorf archive (1967) Source: City of Düsseldorf archive (1972) PROJECT DEVELOPMENT FROM THE IDEA TO THE PROJECT 25

» WHAT INSPIRED US? COURAGE, VISION AND A CRITICAL VIEW OF THE STATUS QUO. «

2014 2015/2016 TARGETED AT THE FUTURE VISIONARY CONCEPT

The letting situation in the existing building The initial concept of a residential develop- develops well and projects for the further ment at the Albertussee appears to be an ­optimisation of the occupancy situation are audacious idea. But the idea remains persis- underway. Time to take a breather? Quite the tent and the concept is discussed time and opposite. Step by step, the internal process again. Conservative calculations provide begins to focus on the future potential of the encouraging results. Against the background property. The various options are reviewed of the market situation, the urban develop- and deliberated in detail. ment context and the favourable micro location, the concept becomes increasingly attractive. A workshop is planned with senior management and initial sketches are drawn up.

STUDIO. WHYEVER, WHEREFORE, WHY? The Studio & Design team is the self-contained think tank operating at the interface of con- temporary architecture, current planning and innovative retail formats. The team develops » AT THE BEGINNING innovative, flexible and value-enhancing ­solutions supporting its colleagues from METRO AG’s Project Development and Sales IT WAS JUST AN IDEA. « departments worldwide. STEFAN HERBERT, Head of Studio – Corporate Project Development MAIKE WREDE, Senior Project Manager – Corporate Project Development PROJECT DEVELOPMENT FROM THE IDEA TO THE PROJECT 27

» SOMETIMES ONE MUST WIPE AWAY THE DUST TO DISCOVER THE REAL PEARLS. « 06/2016 10/2016 MILESTONE HITTING THE SPOT

Stop or go? The initial cooperative workshop between the Asset Mayor Thomas Geisel uses the EXPO REAL ­Management and Project Development departments and senior trade fair in Munich for the first public ­management clears the way. Now the hard work begins on convincing ­introduction of the concept as a potential participants that this is indeed the right way, as the concept of a ­residential project for the area of Düsseldorf ­residential development is outside the typical remit of the portfolio. to the west of the River Rhine, and offers his The preparation work is equally painstaking. In addition to analytical ­official support. This is immediately followed ­material, the team produces its own plastic model of the project. by countless enquiries from investors, external A drone is used to provide aerial photographs of the site. In addition project developers and construction compa- EXPO REAL. GOOD TO KNOW. to the calculations, the potential for the location next to the Albertus- nies. The project is on everyone’s lips. EXPO REAL takes place in Munich every year in see becomes obvious. An overall agreement is reached by the end early October and is Europe’s largest trade fair of the workshop. The go-ahead is given for pre-development activity. for real estate and property investors, with just under 21,000 visitors and over 2,000 exhibitors in 2018. 07/2016 HANDS-ON As part of the initiation of the process of amending the local develop- » WE EXPECTED THERE ment plan with the City of Düsseldorf planning department, METRO PROPERTIES becomes the official project sponsor of a residential TO BE SOME INTEREST. ­development and agrees to meet the costs for all reports prepared ­HOWEVER THE REACTION TO by ­independent experts. The process of transforming the property THE PRESENTATION AT EXPO into a residential development can now be actively commenced. REAL WAS ­SUBSTANTIAL AND ­BECAME A FURTHER ‘PROOF OF CONCEPT’. « PROJECT DEVELOPMENT FROM THE IDEA TO THE PROJECT 29

12/2016 05/2017 09/2017 MAKE OR BREAK PEOPLE@WORK ARCHITECTURAL COMPETITION

The hot phase comes to an end: the intensive analysis of locational factors is completed. The air It has taken around six months to compile The competition is in full swing. All competition samples, water samples, test borings, noise reports and expert reports on wildlife conservation the wide-ranging documents for the urban entries are submitted to the process manager are on the desk. And the results are encouraging and in compliance with the requirements of the ­development design competition. Now it’s anonymously. The submitted designs are re- city council and environmental protection agencies. ready to go: The results of all expert reports viewed formally and professionally and only and ­planning guidelines are provided to a made available to the awarding committee on ­selection of German and international the day of the jury meeting. architectural­ practices.­ » TRUST IS, AND REMAINS, A PEOPLE BUSINESS. THIS DEFINES US! «

» THE ARCHITECTURAL COMPETITION WAS A REQUIREMENT LAID DOWN BY THE CITY OF 04/2017 DÜSSELDORF. WE ACTIVELY SUPPORTED THIS THE ART OF COMMUNICATION PROCESS. « Before the “Living Project at Albertussee” can be approved by the City of Düsseldorf’s Planning and Building Control department, the majority of local councillors must be in support of the project. Now comes the time to convince the voters of the advantages of the project. This in- volves many personal meetings with the various factions. Dialogue is constructive and engaged, and ends with a clear go-ahead from the local committee. PROJECT DEVELOPMENT FROM THE IDEA TO THE PROJECT 31

» AS EXPECTED, THE ARCHITECTURAL­ COMPETI- 12/2017 04/2018 05/2018 TION PROCESS INVOLVED PLEASE CORRECT! DATA ROOM BIDDER POOL SIGNIFICANT RESOURCES. The winner’s entry is unable to be further The decision has been made: the property at As with many such decisions, the selection of THE EXPECTATIONS OF THE ­developed as it stands. The jury decides that Albertussee will be sold. There is a further the investors to make up the bidder group is DESIGNS SUBMITTED WAS a number of definitive amendments required ­intensive work phase compiling the documen- based on both the senior management and EQUALLY HIGH: THE COM- by the City Council will need to be reworked tation for the data room – a critical stage in participating teams: which investors appear by blauraum Architekten GmbH. the preparation of the sale process. This to have a connection with the region? Which PETITION WAS INTENDED ­includes existing data regarding the existing are able to nurture the good relationship with TO BE A SOURCE OF INSPI- building – lease contracts, servicing contracts, the City Council? The subject of social respon- RATION AND THE DRIVING expert reports, existing documentation, sibility also plays a role. Here, the combined FORCE OF INNOVATION. « ­construction documents, building permits, etc. know-how of the Asset Management, Project – plus all information on the project develop- Development and Transactions departments ment. The resulting data room is then made is critical. available to selected investors which have in- dicated their concrete interest through a letter of intent. Staff from the Asset Management, Project Development, Transactions and Legal departments are made available to answer investors’ ­questions. The process is managed 11/2017 by the Transactions department. ARCHITECTURAL COMPETITION » WE HAVE BEEN INTENSIVELY INVOLVED WITH THE The 18-person jury includes participants from ­DEVELOPMENT FROM THE OUTSET. THE OPENING OF the various factions and political groups and THE DATA ROOM MARKS THE RELEASE OF INFORMATION professionals from the city council and METRO PROPERTIES. The rotating groups ABOUT THE RESIDENTIAL PROJECT AND BACKGROUND review the drawings and models provided by DATA INTO THE PUBLIC DOMAIN FOR THE FIRST TIME. the various architects. The analytical process AN ­ALMOST EMOTIONAL MOMENT FOR US. « takes the entire day. This is followed by many rounds of committee meetings until the winner is decided upon: the design entered by ­Hamburg-based blauraum Architekten GmbH. All parties – both winners and losers – are ­informed of the decision on the same evening. OFFICE RESIDENTIAL 33 SPECIAL FEATURE: LOCATION LOCATION 35

Population Population growth since 2012 DÜSSELDORF almost 640,000 + 5 % CITY ON THE RIVER RHINE 10 km

The state capital of North Rhine-Westphalia is an important trade fair destination, a centre for communications, advertising and fashion, the #1 international #1 Asian hub Ruhrgebiet (Ruhr region) No. 1 consultancy location and one of Germany’s most dynamic eco- trade fair in Germany [40 km] destination­ nomic regions. Düsseldorf is the headquarters location of many stock 52 exchange-listed companies such as METRO, E.ON and Henkel. Located at the centre of the Rhine-Ruhr metropolitan region, Düsseldorf enjoys 44 optimal accessibility from all directions. There is no lack of transport GfK purchasing GDP 2005 – 2015 connections via motorway, railway and the city’s international airport. power index 44 There are a number of universities including HSD, Heinrich-­Heine- + 22.5 % Krefeld Universität and the internationally renowned art academy comprising 117.7 [20 km] 5 km a broad spectrum of educational institutions. Düsseldorf is also known super-regionally for its Königsallee retail boulevard, its old town and the popular Rheinuferpromenade, as well as its many artistic and cultural 6th events. best place to live worldwide* 3

*Mercer Quality of Living survey 2017. Lörick Nieder- kassel DÜSSELDORF ALBERTUSSEE Ober- 52 City centre Heerdt kassel HEERDT << DISTRICT IN TRANSITION Netherlands [40 km] The district of Heerdt lies to the west of the River Rhine and borders ­Alt-Heerdt, including the centrally located Frankfurt ­directly onto Düsseldorf’s showcase district of Oberkassel. The Nikolaus-Knopp-Platz with its many conveni- [220 km] ­neighbourhood is continuing to develop as a location for high-­ ence stores. 57 specification new-build projects and the gap is gradually closing The structural transformation to a services between the sophisticated and upscale Oberkassel and the more and residential economy is evident through- 46 ­village-like district of Alt-Heerdt. out Heerdt. The Albertussee, Rhine bank, Since 2010, Heerdt has become an ever increasing focus for city planners, Cinestar-Filmpalast and local sports centre 59 project developers and investors. In addition to the residential develop- provide leisure amenities in the immediate ment project at Am Albertussee 1, important construction ­projects in ­vicinity. There is a modern indoor swimming the district include the Vodafone Campus, Heinrich-­Heine-Gärten, pool under construction, due to open in 2020. vierzig549, Rheinkilometer 740 and a development of penthouse There are also ideal transport connections: apartments with a car lift located in a former bunker. the A 52 motorway and the B 7 and B 9 federal The large number of available sites and industrial buildings makes roads provide superb connections around the 46 the ­district an attractive development location and promises further ­ Rhine and Ruhr regions. There are regular 57 value-enhancement potential. public transport services to Düsseldorf city Heerdt residents enjoy the swift connections to the city centre and centre with its many cultural, leisure and Cologne all the advantages of a sophisticated lifestyle. At the same time, they shopping amenities. << benefit from the proximity to nature and the original core area of Aachen [40 km] [80 km] TRANSACTIONS FROM THE IDEA TO THE PROJECT 37

» THE PROPERTY TO BE SOLD IS A FULLY LET BUILDING COMPLEX AND, AT THE SAME TIME, A PROJECT DEVELOPMENT CONCEPT WHICH CAN BE TRANSFORMED INTO AN OPTIMAL REAL ESTATE FINANCE PRODUCT: NOT ONLY FOR THE PURPOSE OF THE SALE, BUT FOR THE FUTURE, AS WELL. « 01/2018 03/2018 LET’S GO POINT OF INTEREST

The time is right: the concept “Living at The two-stage bidding process begins. ­Albertussee” has matured into a marketable A total of 13 potential investors have been product and will be offered on the market ­selected in close internal agreement with the in the short term. The objective is to achieve Asset­Management and Project Development an optimal selling price for the company and, departments. The prerequisite for continued at the same time, identify an investor who will participation is a local track record of compa- continue the project development in the sense rable, completed development projects in the of the concept and overall idea. This will region. The indicative offer phase is expected happen with the highest degree of openness to be completed within four weeks. There are and transparency. The project currently enjoys numerous submissions – it appears that all a high level of media attention. 13 investors remain interested. » WE HAVE MATERIALISED ­THEORETICAL VALUES WITH THE STATUS QUO. The building complex has been fully refurbished and is 100 % let. The investor will benefit from a HIGHEST DEGREE OF SUCCESS. « minimum risk profile thanks to the stable cash flow and has the opportunity to ­accelerate and JULIAN SOMMER, Senior Project Manager – Transactions optimise the project development concept in the period up to 2020. TRANSACTIONS FROM THE IDEA TO THE PROJECT 39

» WE HAVE NOT FALLEN VICTIM TO BUILDING ­CASTLES IN THE AIR, RATHER WE HAVE KEPT OUR FEET FIRMLY ON THE GROUND AT ALL TIMES. «

05/2018 07/2018 SCORING FINALE

» THE EFFORT INVOLVED IN DATA ROOM The second phase of the bidding process starts with the prospective The purchase contract is signed in mid-July. Thanks to the excellent investors being granted access to the data room. An important issue preparations and professionalism on both sides, the deal can be MANAGEMENT IS TYPICALLY EXTENSIVE. at this point is the correctness and completeness of the documents, ­notarised without further negotiation. The transfer of ownership to IN ­ORDER TO INCREASE COMPETITIVE TEN- information, analyses and concepts contained in the data room. These Pandion AG takes place in September 2018 upon satisfactory SION, WE HAVE GRANTED FIVE BIDDERS form the basis for the investors’ painstaking review – the due diligence ­compliance with deadlines, including payment of the purchase price. process. The subsequent digital Q&A process during which the bidders The final process is managed by the Asset Management and Project ACCESS TO THE DATA ROOM INSTEAD OF are invited to ask questions may require significant effort from the staff Development­ departments THE ORIGINAL PLAN FOR THREE. « in the Asset Management and Project Development departments. This phase of the process is managed by the Transactions department. There are local property inspections and further discussions with all bid- ders which form the basis of the collective decision by the various teams.

» ON THE ONE HAND, THE CONCLUSION OF 04/2018 06/2018 THE TRANSACTION MARKS THE CLOSURE OF A HIGHLY SUCCESS REPOSITIONING OF DYNAMIC PROCESS SIMPLY THE BEST THE PROPERTY, AND ON THE OTHER, IT HAS The indicative offers received are being care- The winner of the bidding process is decided: after a review of all RESULTED IN A HIGHLY PROMISING PRO- fully analysed and evaluated. This involves ­quantitative and qualitative criteria, it is decided that Pandion AG JECT DEVELOPMENT. « further cooperation between staff from the is the ideal partner. Whilst the active purchase contract negotiations Asset Management, Project Development and begin, the Cologne-based property company will be granted an Transactions departments. Based on personal exclusivity period of four weeks, during which there are many telephone discussions with all participants, it will be conferences and personal meetings. The negotiations achieve a sale decided which investors have submitted the price of EUR 56 million. Legal advisors rework the commercial terms most impressive entries within a period of two and ­conditions into a legal contract. weeks. These investors will then be invited to participate in the next phase of the bidding process. PANDION AG NEW OWNER 41

IN SAFE HANDS THE PURCHASER WILL TAKE OVER THE FURTHER PROJECT­ DEVELOPMENT

Pandion AG is headquartered in Cologne and has been involved in the development, realisation and sale of high-class residential projects since 2002. The owner-operated real estate company develops properties in its home city as well as in Berlin, Bonn, Düsseldorf, Mainz, Munich and Stuttgart. The company’s portfolio includes residential high-rise buildings – a trend actively pursued by the Cologne-­ based real estate experts since 2008. In addition, Pandion is constantly expanding its involvement in the commercial sector. This real estate professional’s trend-setting residential projects are primarily related to neighbourhood concepts and urban developments, and the company’s steady growth is attributable to, among other things, its focus on central locations in Germanys’ top tier cities. Pandion employs around 140 people in Cologne, Munich, Berlin and Stuttgart.

» AS AN INVESTOR, WE COULD NOT HAVE WISHED FOR BETTER CONDITIONS. THE ‘LIVING AT ALBERTUSSEE’ CONCEPT IS A TRAILBLAZING PROJECT. THE SALE OF THE PROPERTY WAS OPTIMALLY PREPARED FROM THE INITIAL IDEA TO THE BIDDING PROCESS UP TO THE FINAL ­TRANSACTION. «

REINHOLD KNODEL, Owner and CEO of PANDION AG SPECIAL FEATURE: PRESS PUBLICATIONS 43

COMPETITION FOR THE SITE METRO PROPERTIES TO AT THE ALBERTUSSEE BUILD RESIDENTIAL ­COMPLEX DÜSSELDORF PRESENTING DÜSSELDORF: » Anyone going for a stroll ning department is PANDION AG DEVELOPS at the Albertussee lake will currently reviewing plans » Together with the City of ium apartments, rental apartments ART, CULTURE AND RESIDEN- TIAL DEVELOPMENT COMPLEX AT THE ALBERTUSSEE feel as if they’re on holiday for an urban ­development Düsseldorf,­ METRO PROPERTIES and social housing. It is still pro- along the Strandprome- design competition, which is developing a residential posed to carry out an urban AT MIPIM IN CANNES nade (...). It is planned to is expected to be intro- complex in the district of Heerdt development design competition » Cologne-based Pandion of Düsseldorf. METRO st to comprise a mix of condomin- during spring this year. « AG will develop a residen- PROPERTIES­ sold the site construct 500 to 700 duced on 21 June (...). « » ‘Düsseldorf is a dynamic English language pres- apartments. The City Plan- tial complex on the site of to the company for around RHEINISCHE POST (01/03/2018) destination, not just for entation at MIPIM. « the former Horten EUR 56 million. « investors’ is the title of the WESTDEUTSCHE ZEITUNG (21/04/2017) ­headquarters in the west NEUE DÜSSELDORFER ­ONLINE ZEITUNG (15/03/2018) IMMOBILIEN ZEITUNG (27/09/2018)

RESIDENTIAL CONCEPT AT RESIDENTIAL PARADISE IN THE ALBERTUSSEE HEERDTER HOFGARTEN

» The winner’s design for Cornelia Zuschke, Head of » A new residential complex park. It is proposed to con- a new residential complex Planning and Building will be developed on the site struct six underground directly next to Albertus- Control. “The jury has of former offices (...). There is garages with parking for 560 COMPETITION COMPLETE see on the site of the made a good decision”, even talk of a lakeside beach. cars and a large number HAMBURG-BASED ARCHITECT WILL DEVELOP THE DÜSSELDORF PRESENCE AT former Horten headquar- she said. « There will be a footpath (1,430) of bicycle stands. ters was highly praised by around the lake (...). The area There will be noise protection SITE THE MIPIM REAL ESTATE FAIR will be further upgraded with to the north of the planning IN CANNES RP ONLINE (14/03/2018) new footpaths, play areas and zone on the northern side of » Cornelia Zuschke, Head of in keeping with this special sports facilities, a playing field, Albertussee. « Planning (after the announce- location and the superb way » And the METRO Group’s residential project at a football pitch and a skate ment of the decision): “the it will provide all future resi- ­Albertussee heads into the next phase. « WESTDEUTSCHE ZEITUNG (15/12/2018) jury has reached an excellent dents with access to the ANTENNE DÜSSELDORF, ONLINE (14/03/2018) decision. This design was se- water. « lected for its planning concept

WESTDEUTSCHE ZEITUNG (14/03/2018) METRO PROPERTIES COMPANY 45

SENSIBLY INTEGRATED SERVICES: DRIVING REAL ESTATE VALUE OUR CORE COMPETENCES

METRO PROPERTIES is the real estate company of METRO AG – and and the development and support of modern wholesale, retail and thus part of a company focusing entirely on the customer. This is mixed-use concepts. Our Asset and Portfolio Management department functions as the ensured by the support we offer to our holding company, comprising ¤ Our core centres of competence, Asset Management, Project Development owner of METRO’s international real estate portfolio. The assets are all-round expertise in the area of real estate marketing. Our real estate ¤ and Transactions, provide a proactive and value-enhancing property ¤ profitably managed and further developed at every stage in the property experts know and understand METRO’s business processes. We are management service at both national and international level. Investors, life cycle. The objective is the early identification and implementation able to provide the group with optimal support and manage, operate The Transactions department structures and lessees and clients receive competent support worldwide. of market and location-related development potential. This enables us and further develop the company’s own property portfolio – for example, markets attractive investment products. It is to guarantee systematic and sustainable value enhancement. to bring it even closer to the customer. In addition to the headquarters in Germany, the company also operates able to draw on the expertise gained from a through offices in Poland and Turkey. In other countries, METRO multitude of transactions. Our staff offer inves- Our duties involve our combination of comprehensive wholesale and ­PROPERTIES is represented by regional management and the METRO tors optimal solutions for investment products retail competence, highly developed real estate expertise and subse- team. from a wide range of transaction types. quent implementation capability. We act as a partner for investments

ASSET & PORTFOLIO MANAGEMENT TRANS- ACTIONS

The Project Development team designs creative and future-orientated real estate concepts for METRO which are fully aligned to the local market situation and the requirements of our clients. Our PROJECT DEVELOPMENT experts offer innovative and sustainable concepts which are in high demand in the market.

DOING BUSINESS RESPONSIBLY METRO AG is a leading international specialist in the food wholesale sector. The company delivers tailored solutions to the local and international requirements of its wholesale and service sector customers. There are good signs for the future: with its ­METRO and MAKRO Cash & Carry sales channels, together with delivery services and digitalisation initiatives, METRO is clearly focused­ on the wholesale business, digital solutions and reliable business models. Publisher METRO PROPERTIES GmbH & Co. KG Am Albertussee 1 40549 Düsseldorf Germany

Design, text and creative production Concept and editorial office Prime Objects GmbH, Düsseldorf PR & Internal Communications Photo credits METRO AG M [email protected] Kai Weissenfeld, Düsseldorf T +49 211 6886-4250 Page 11: City of Düsseldorf archive F +49 211 6886-2001 Pages 13, 30, 31 and 33: blauraum Architekten GmbH, Hamburg www.metro-properties.de As at: June 2019