Altmarkt-Galerie QUICK FACTS Location Dresden, Germany

May 2015 ULI Case Studies

Project type Mixed use—three or more uses

Site size 26,150 square metres (281,476 sq ft)

Land uses Retail, office, hotel

Keywords/special features Urban regeneration, historic building renovation, urban integration, natural air ventilation, regional and international tenant mix, daylight simulation, urban perforation/high number of entrances, central city development, pedestrian-friendly design, transit-oriented development

Website PAULINE FABRY PAULINE www.altmarkt-galerie-dresden.de Altmarkt-Galerie comprises both historic and modern structures. The second-phase extension of the project opened up Altmarkt-Galerie to Dresden’s city centre for the first time. The first phase was contained within a Project address courtyard of residential buildings. Webergasse 1 01067 Dresden PROJECT SUMMARY Germany Altmarkt-Galerie is a mixed-use retail development in the centre of Dresden, Owner Deutsche EuroShop AG Germany, that features a shopping centre containing 64,400 square metres Heegbarg 36 (693,200 sq ft) of gross leasable area (GLA) that was originally opened in 2002 22391 Hamburg Germany and later expanded in 2009–2011. The project also includes a 5,300-square- www.deutsche-euroshop.de metre (57,049 sq ft) hotel and 7,300 square metres (78,577 sq ft) of office space. Developer ECE Projektmanagement GmbH & Co. KG The first phase of the project includes three modern blocks, arranged north to Heegbarg 30 south in a courtyard—surrounded on three sides by existing four- to six-storey 22391 Hamburg Germany residential apartment buildings. The modern blocks are connected by glass- www.ece.com covered pedestrian walkways. An extension, which opened in 2011, added 19,200 Initial investors Deutsche EuroShop AG square metres (206,700 sq ft) across a T bar–shaped block at the north of the Heegbarg 36 original site. During the expansion, an existing 1960s office block was demolished 22391 Hamburg Germany and replaced with a modern building, while a listed building was renovated. The TLG Treuhand Liegenschaftsgesellschaft mbH expansion added 93 retail shops on three floors, with offices and a hotel above. Hausvogteiplatz 10117 Berlin Germany Altmarkt-Galerie is a mixed-use shopping centre for Dresden in many respects, as it represents ECE/Otto Family in the heart of Dresden with a retail GLA of a key piece of the city’s urban regeneration. Heegbarg 30 64,400 square metres (693,200 sq ft), 200 Conceived soon after the reunification of East 22391 Hamburg Germany shops, a 5,300-square-metre (57,049 sq ft) Germany with West Germany in 1990, Altmarkt- hotel, and 7,300 square metres (78,577 sq Galerie has helped Dresden find a new centre ft) of offices. The project has been significant as well as a new architectural identity. Owing www.uli.org/casestudies Altmarkt-Galerie Case Study 1 to the scheme’s strategic importance in the site is that it was surrounded on all four sides which was a densely populated urban area urban landscape, the local government has long by existing buildings, with no direct street before the World War II bombing.” supported Altmarkt-Galerie. frontage on any of the sides. This presented To guide the development, ECE used a The shopping centre and mixed-use an interesting design challenge. The site had steering committee, whose members included scheme have provided the city with a new heart, previously been occupied by retail uses, so there city council officers and ECE executives, a body which was not previously obvious in the city. was a history of retail operating on the site. Hoffmann sees as key to the success of the Dresden’s lack of identity is a legacy of heavy The development and long-term manage- development. “We had outstanding cooperation World War II bombing as well as the socialist ment of Altmarkt-Galerie have been directed by from officials, and full support from the local urban planning that favoured wide, spacious ECE, which was also the general planner and government and politicians,” he says. boulevards, concrete office towers, and large leasing agent for the project. The initial investors residential blocks, ignoring to a large extent the included ECE/Otto Family, Deutsche EuroShop, Development Background historical town layout. and TLG Treuhand Liegenschaftsgesellschaft. ECE first visited the city in 1990, prompted Altmarkt-Galerie has been owned by Deutsche by its interest in investing in the former East The Site and the Development Team EuroShop AG since 2013. Germany, newly reunified with West Germany. Located south of the historic core of the city, Dresden’s city council has maintained a While Dresden was struggling with its transition Altmarkt-Galerie is adjacent to Altmarkt Square, high-profile role in bringing both the first and from a centrally planned economy to a market once a thriving public square for market traders. second phases of Altmarkt-Galerie to fruition. economy, the developer believed it was only The site links two previously distinct parts of Although the city had three different mayors a matter of time before the city would see the city. The centre is sited between Dresden’s before ECE finally got approval, this did not halt an increase in prosperity. Retail supply in the historic district—which includes Zwinger ECE’s project progress, as Burkhard Hoffmann, central city was lacking, and ECE felt that a big Palace, the Semper Opera House, and the ECE Development’s managing director, explains: opportunity existed to bring new stores, formats, famed church known as Frauenkirche—and “All three mayors strongly believed in that store sizes, and retailers to the city’s heart. Prager Strasse, the city’s main shopping street. location; they believed in ECE and strongly At the same time, Dresden’s city council This means the location is well positioned as supported the project. Over those years, it was was looking for a way to revitalise the town. both a meeting place and point of attraction for clear that the vast majority of politicians in the Fundamentally, Dresden needed a project that residents and tourists alike. city’s parliament wanted to see a big shopping would create a lively neighborhood in the city. One of the most unusual aspects of the centre in Dresden in this almost-derelict area, The city needed retail that would attract footfall roughly 26,000-square-metre (281,500 sq ft) PAULINE FABRY PAULINE Atlmarkt-Galerie is adjacent to Altmarkt Square, a thriving public square in the heart of Dresden.

2 Altmarkt-Galerie Case Study www.uli.org/casestudies within the city, away from the shopping outlets Development Concept and Site on the city’s periphery. Acquisition This led to a partnership between the In 1993, when the design competition was developer and the city council. In 1993, ECE, organised, the Altmarkt-Galerie plot was mainly the city government, and state-owned Treuhand, in the hands of the state-owned company the main plot owner, cofinanced an urban Treuhand, established to privatise all state- design competition to find farsighted ideas that owned companies and assets of the former East would offer an identifiable urban centre. “No Germany. “It wasn’t clear at this point that we one knew where the heart of the city would be. would be future owners of the site,” explains We had around five inner-city locations that we Hoffmann. could have used for a huge shopping centre,” Architects Manfred Schomers and Rainer says Hoffmann. Schürmann won the urban design competition. Visually, the city reflected its difficult history. The first concept that was prepared was not The legacy of large-scale bombing in February ideally laid out for shopping centre use with all its 1945, which destroyed 647 hectares (1,600 ac) functionalities. It showed three blocks of buildings of Dresden’s city centre, was evident. Impersonal that were not connected to each other, but were socialist architecture sat alongside baroque, separated by open (i.e., not covered by any kind Renaissance, and classical structures that had of roof) streets. These buildings were, in turn,

PAULINE FABRY PAULINE survived the Allied bombings. Huge open spaces surrounded by long blocks of residential buildings The centre is sited between Dresden’s historic and wide streets—characteristic of socialist on three sides that created a visual barrier. district—which includes Zwinger Palace, the Semper urban planning—meant the city did not have a Opera House, and the church known as Frauenkirche— human scale. and Prager Strasse, the city’s main shopping street. STÄDTISCHES VERMESSUNGSAMT DRESDEN VERMESSUNGSAMT STÄDTISCHES Altmarkt-Galerie includes 64,400 square metres (693,200 sq ft) of retail space, 200 shops, a 5,300-square-metre (57,049 sq ft) hotel, and 7,300 square metres (78,577 sq ft) of offices. The project is surrounded on three sides by residential blocks. The development represented a key piece of the city’s urban regeneration.

www.uli.org/casestudies Altmarkt-Galerie Case Study 3 An intensive discussion among the These included prominent entrances located in 1962. These retail buildings were demolished architects, the municipality, and the developer at portals on the exterior of the residential in order to make room for Altmarkt-Galerie. The started to create a more detailed and work- buildings. residential blocks still remain. able layout, which was adapted to meet the After the investors bought the plot in 1997, First phase. The first phase of the develop- requirements of a shopping centre—at the construction began in 1998 and the first phase ment consisted of three new three- to four- same time taking the original block structure was finished in 2002. storey buildings in a large courtyard within the from the urban design competition into ring of residential buildings. Retail space is Development Strategy and Plan consideration. The revised plan provided accommodated on the first and second levels of covered connections between the three blocks As noted, when the investors bought the plot for each building as well as in the basement level, and also included closer links between the the initial investment, it consisted of an almost creating three retail levels. Each new building shopping centre and the surrounding historic complete outer ring of residential buildings, up was topped with a large glass rotunda to allow streets and Prager Strasse, incorporating to six storeys high. The inner courtyard of the for interior daylighting. pedestrian streets within the development that area was used for a smaller retail scheme called The buildings are linked by glass-covered would allow people to flow through the site. “Einkaufscentrum Webergasse,” which opened walkways to each other and to the surrounding

Postplatz

DVB-Service Center

Entrances to Altmarkt-Galerie Entrances to Of ces Entrance to Hotel ibis budget Dresden City

Altmarkt

The site plan. Housing surrounds the project on three sides.

4 Altmarkt-Galerie Case Study www.uli.org/casestudies streets, following preexisting street patterns, providing sheltered customer access into Altmarkt-Galerie. “The scheme was conceived around smaller, tighter spaces and a sequence of alleys and squares contained, emulating the kind of shopping districts you’d see in a European city,” says Schomers. Care was taken to link the scheme into existing streets, such as the historic alley Webergasse; this was one of the key design principles of Altmarkt-Galerie. Connected walkways between buildings were used to enable visitors to experience the first phase of the complex as a single entity, despite the fact that it is made up of three separate structures. Large glass-topped rotundas in each of the three buildings, bright piazzas on the preexisting street crossings, and glass-covered walkways are distinguishing architectural features of the project.

Office space is located on the upper levels CLAUS SVEN FOTOGRAFISCH, of the buildings and seven separate entrances to Internal courtyards and connecting walkways were integrated into the plan. the office space are offered around the exterior of the first phase. An underground car park for the Altstadt area of the city centre—and to protect historical buildings and integrate visitors provides 500 spaces. competition from retail on the city’s periphery. shopping into the historical centre. Dresden’s Extension. In 2008, ECE announced that it But it also represented the final piece of the deputy mayor, Dirk Hilbert, opened the would extend Altmarkt-Galerie to Postplatz project, bringing the centre out of the courtyard extension in March 2011. and Wilsdruffer Strasse. The expansion was and connecting it to transit along Wilsdruffer To accomplish this expansion, the investors undertaken to strengthen Altmarkt-Galerie’s Strasse, the historical old town centre, and the purchased the buildings at the north end of market position as the dominant shopping Prager Strasse shopping mile. the existing centre, allowing the expansion to centre in Dresden’s city centre, following the Dresden’s city council also had a strong reshape Altmarkt-Galerie into the shape of opening of Centrum Galerie—a 52,000-square- interest in the extension. It wanted to keep a T when viewed from above. The extension metre (560,000 sq ft) shopping centre in purchasing power within the city and to continue gave the shopping centre a “face” toward the historic district. Until then, the three retail blocks were hidden behind residential buildings. The investors bought the plot for the extension in 2008 and construction began in 2009, following the completion of a new zoning plan. Among the buildings that were acquired was the listed Intecta building, from Augsburg, Germany– based Patrizia Group, for an undisclosed amount. It was extensively refurbished and incorporated into the concept, and now houses retail and office space and serves as an important landmark feature for the project. The investors also purchased the Linde building, a derelict structure from the 1960s that was demolished to make room for a new, modern building. This new structure houses retail space, offices, and a 5,300-square-metre (57,049 sq ft) hotel on the upper floors. The

FOTOGRAFISCH, SVEN CLAUS SVEN FOTOGRAFISCH, offices have a flexible floor plan, allowing for The project lies adjacent to tram lines, and public transport is the primary way visitors get to Altmarkt-Galerie. units of around 100 square metres (1,076 sq

www.uli.org/casestudies Altmarkt-Galerie Case Study 5 ft). Doctors’ and solicitors’ practices occupy the The loan terms required preleasing of the buildings were already gone. But it could new offices. The hotel—the IBIS Budget City 40 percent of the shopping centre during the not be guaranteed that we would not have had Hotel—includes 203 rooms and faces onto first phase. For the extension, preleasing of to protect any cellars that could have been Wilsdruffer Strasse. 50 percent was required. There were no key found in the course of the excavation works for The interior of the extension is brightly loan-to-value and debt-coverage ratios for the car park. That is why we decided, together lit and dominated by high-quality materials: either phase, nor any special programmes, loan with city administration, that we would need light natural stone combined with dark wood guarantees, mezzanine financing, or special to work on a solution enabling us to build a and stainless steel. Schomers says of the financing techniques or structures. car park and not destroy any valuable historic new wing’s design: “Important for us was the archaeological remains,” says Hoffmann. integration. In the design, we wanted to reflect Design and Historic Conservation The developer found a good solution, the images that are characteristic of the city of Several design issues were of particular which involved researching the archives for Dresden, and thus find acceptance among the importance as the project was planned, each plot to understand the history of the site general public. So we wanted to have high-value including historic preservation, visibility, and over the centuries. During this process, it was materials. This is why the entire structure is clad public access. confirmed that only one area in the basement with Mediterranean natural stone.” needed in situ protection, as it dated from the Historic site issues. Altmarkt-Galerie was The extension added 93 shops and a 14th century. ECE implemented a wine cellar built on a protected and archaeologically further 19,200 square metres (206,700 sq ft) in this historic basement, which is specially valuable site. ECE was very aware of this special of sales area across three floors. The shops illuminated. responsibility and tried its best to reconcile were mostly 200-square-metre (2,153 sq its business needs with the strict regulations Visibility. The six-storey residential blocks, ft) units. Only three stores were larger than of building conservation. Listed buildings that which surrounded the plot on three sides, also 1,000 square metres (10,800 sq ft). Four surrounded the site, built on centuries-old were a concern to the project team before new entrances to the retail space at the local historic ground, presented ECE with several construction of the first phase. “It affected what transport interchange were added at Postplatz, archaeological challenges. people thought of the concept internally because at Altmarkt, on Wilsdruffer Strasse, and on One challenge was the basement under you can’t see the centre from a long distance Tuchmachergasse. Three new entrances were Altmarkt-Galerie, which was set to be the site of away. But in the end, ECE was convinced that also added to the office space. The entrance to an underground car park. Here, ECE discovered the clear concept, strong tenant mix, and the hotel is located on Wilsdruffer Strasse. remnants of around 60 former merchant and anchor tenants meant this visual issue wouldn’t The developer had not been able to develop tradesman premises sited along historic roads. be a problem.” on this piece of the site initially—then a 1960s “We didn’t think this would cause a problem as office block—because it was occupied. But ECE had made provision for the extension project during construction of the first phase in 2000–2002, having instructed contractors to create predetermined breaking points along the northern facades on each level, marking where to break through if an extension was possible in the future.

Development Financing ECE has teamed up with project partners for both phases of the construction process. The partners for the first investment included Deutsche EuroShop, TLG Treuhand Liegenschaftsgesellschaft, and ECE/Otto Family. By the second phase, ECE/Otto Family had already sold its shares in the first phase. Equity in the first phase of Altmarkt-Galerie amounted to around 40 percent of the cost of the shopping centre. During the second phase, Deutsche EuroShop and TLG Treuhand Liegenschaftsgesellschaft funded the project. CLAUS SVEN FOTOGRAFISCH, Strong entrance features and integration with existing buildings and the cityscape were important aspects of the design of Altmarkt-Galerie. Dresden features baroque, Renaissance, and classical structures that survived the bombing of World War II.

6 Altmarkt-Galerie Case Study www.uli.org/casestudies that the centre itself cannot be accessed after Czech Republic and Russia. The average age of 22.00 h. the visitor to the shopping centre is about 42. Public transport is the primary way to arrive Marketing, Leasing, and at the centre. Most visitors (42 percent) travel Management to the centre by tram, while 24 percent arrive Today, with 1,352,000 visitors each month by car, 17 percent arrive on foot, and 6 percent and with 2,176,200 visitors at peak times, the arrive by bus. shopping centre has successfully established Following the opening of the extension, itself in the city and wider region. Sixteen ECE worked to communicate its plans with months after its 2011 extension was complete, the inhabitants of Dresden and beyond in the average daily footfall increased from 35,000 several ways, including public meetings, to 52,000—benefitting new tenants in the press conferences, a countdown campaign in extension building as well as those retailers in newspapers, radio advertising across the region the preexisting centre. and in the Czech Republic, public displays of the plans, and exhibitions of architectural finds from Marketing and promotion. Altmarkt-Galerie excavation work. has a wide catchment area of around 2.1 million The management team undertakes market- people. It is within five minutes’ journey time of ing campaigns both inside and outside Altmarkt- 51,500 people, five to 15 minutes’ journey time of Galerie. The campaigns are targeted to the 330,300 people, and 15 to 45 minutes’ journey catchment area but also to tourists. time of more than 1.02 million people. It is also Altmarkt-Galerie has its own centre gazette PAULINE FABRY PAULINE close to major regional cities—150 kilometres and runs advertising campaigns on public Public streets lead through the centre. Two “gateway” (93 mi) from Prague in the Czech Republic, streets are open 24 hours a day. Glass walls separate trams, on the radio, and online. Because tourists 192 kilometres (119 mi) from Berlin, and 112 these pedestrian streets from the retail part of the centre are an important visitor group to the shopping one hour after the shops close. kilometres (70 mi) from Leipzig, Germany. centre, the management team promotes Both tourists and customers of the catch- Altmarkt-Galerie through tourist information ment area make up the bulk of the centre’s offices, hotels, and operators of guided tours. Secondly, the outer ring of buildings meant customer base. Tourists represent 30 percent that Altmarkt-Galerie had no clear line of of the shopping centre’s customers, with Tenant strategy. From the very beginning, visibility to Prager Strasse. ECE worked with the particularly high numbers coming from the ECE wanted to attract tenants that had not been authorities for about a year to obtain permission to use part of the listed building for a new entrance, which now leads shoppers directly to retail on Prager Strasse. Public access and circulation. A third challenge was how best to deal with the public streets that led through the centre. “The idea of a city is it is open 24 hours, seven days a week. But having two streets crossing a shopping centre and keeping them open is not so easy. We said it must be possible to close one street after closing hours, and keep the other open to see how it works,” says Hoffmann. Today, people can cut through Altmarkt- Galerie via two “gateway” streets, the Weber- gasse and the Tuchmachergasse, both of which are open 24 hours. Glass walls separate them from the retail part of the centre one hour after the stores close (at 22.00 h, or 10 p.m.), so PAULINE FABRY PAULINE Large glass-topped rotundas are in each building of the first phase. Bright piazzas and glass-covered walkways are distinguishing features of the shopping centre.

www.uli.org/casestudies Altmarkt-Galerie Case Study 7 PAULINE FABRY PAULINE PAULINE FABRY PAULINE Each month, Altmarkt-Galerie has more than 1.3 million visitors and over 2.1 million at Altmarkt-Galerie hosts many retailers that are not found anywhere else in the city, nor peak times. Tourists account for 30 percent of visitors. anywhere else in Saxony, such as electronic products giant Apple. at other locations in Dresden or in the eastern were able to attract a lot of new tenants. We But on the top floor, the food providers offer states of Germany. One important aspect that could draw upon the fact that we had successful visitors the chance to dwell longer. Here, affected the leasing strategy of Altmarkt-Galerie concepts that had generated a lot of turnover in international food such as Spanish, Greek, was existing competitors on the perimeter of the past.” Asian, and American caters to every taste. Dresden. There, shoppers could find a mix of Leasing and tenant mix. Leasing has been Regional concepts. A key aspect of the various retail types and brands—consumer a success story throughout. Both the existing leasing strategy is regional concepts. “We like electronics stores, a supermarket, sports gear centre and the extension were fully leased to have shops that provide the flavour for our vendors, and a variety of stores selling clothing, before the actual opening, as retailers took shopping centre. This is interesting for visitors shoes, jewellery, and cosmetics. advantage of the new retail format offered in but also [for] tourists who are unfamiliar with The centre’s format is unique and offers the city for the first time. these products. This way, we can offer products an interesting mix of tenant types and sizes. Fashion retailers represent the largest not offered anywhere else,” notes Bogutzki. When it opened in 2002, Altmarkt-Galerie segment of tenants in the shopping centre (44 One example of this is a small shop located offered shoppers a mix of small-sized retail percent), whilst hard-goods stores account for in the basement called Dr. Quendt Backwaren, outlets and anchor tenants that previously were the next biggest retail group at 20 percent. The a Dresden-based company that produces all not available. It also hosts retailers that are not remainder of the tenants is made up of food kinds of local sweets as well as Germany’s found anywhere else in the city, nor anywhere retailers (9 percent), shoe and leather retailers famous stollen. Another shop, called Ratags else in Saxony, such as electronic products (8.79 percent), sports stores (6.98 percent), Kunsthandwerk, sells traditional products from giant Apple. health stores (4.89 percent), restaurants (4.84 the Ore Mountains that are used as decorative Apart from a mix of international and percent), and services (1.41 percent). objects at Christmastime. Viba, a confectioner regional retailers, ECE wanted well-known In Altmarkt-Galerie, one sees a specific from the state of Thüringen, offers visitors the fashion brands in the new centre, as well as clustering of uses, with a general mix of chance to make nougat right in the store. new concepts. It also wanted retailers in the retailers across the three floors. Youth-oriented A high degree of mid-to-high-end price range. “We wanted Extension tenant demand. fashion, food, and everyday goods are located retail demand existed for the new shop spaces to set ourselves apart quality-wise from our on the basement floor. High-quality products, in Altmarkt-Galerie, which was fully let on its competitors,” explains Hans-Dieter Bogutzki, like jewellery, cosmetics, and a wide mix of opening day. More than half of the 100 new senior leasing manager with ECE. fashions, are on the ground floor. The top floor specialist stores were new to Dresden, including The leasing team met with retailers at is family oriented, where customers can get a computer brand Apple, with its first store in regional and international industry events, special variety of goods in the middle-range eastern Germany, as well as the U.S. fashion and focussed on building relationships with price segment. In the new extension, retailers label Hollister. Like many other tenants, Apple international brands to convince them to come facing the street include, for example, Hugo was enticed by the mall’s central location and its to Dresden. Boss, Hollister, and Gant. proximity to neighbouring countries like Poland Bogutzki says the team’s big advantage The 26 food and beverage outlets, which and the Czech Republic, as well as Dresden’s during the leasing phase of the extension was together account for 6 percent of the floor large student population. that it could cite the success of the existing space in the shopping centre, are designed International retailers such as Boss, Gant, centre. “We were able to present the success to complement—not compete with—the Marc Cain, Tommy Hilfiger, Guess, We Fashion, of our existing tenants to new ones. That was a restaurants in the surrounding area. Food Promod, O’Neill, One Green Elephant, Eterna, big advantage for us,” he explains. “We opened outlets in the basement are mainly fast food. Olymp, and Austria’s Högl shoes, as well as our extension with a lot of new shops as we

8 Altmarkt-Galerie Case Study www.uli.org/casestudies FOTOGRAFISCH, SVEN CLAUS SVEN FOTOGRAFISCH, The acquisition of the historic Intecta building as part of FOTOGRAFISCH, SVEN CLAUS SVEN FOTOGRAFISCH, the expansion added a landmark building to the project The listed Intecta building was extensively refurbished and incorporated into the extension, which added 93 shops, while also creating an important new entrance feature at offices, and a hotel. An adjacent 1960s office block was demolished and replaced with a modern facade as part of a prominent corner location. the extension.

London’s handmade-shoe retailer John Baker & centre’s home page—observing which pages goal for next year is to increase this number Son, also leased space. are the most popular and where the newsletter to 50,000. The team posts news on behalf of Alongside international brands, ECE readers are based geographically. tenants, which like to use this form of social believed it was important to include a wide “Besides German- and English-speaking media to publicise their offers. range of regional retailers in Altmarkt-Galerie, visitors, we see that Russian and Czech visitors Foursquare, Instagram, Google+, and such as perfumery Thiemann and chocolate are very frequent visitors to our home page,” YouTube also are part of the management company Halloren. Café Kreutzkamm, which says Nadine Strauss, centre manager of team’s communication channels. “We will is styled as a 1920s confectionary café, also Altmarkt-Galerie. Because of this, and because probably shift our focus onto these in 2015,” moved into the ground floor of the former Intecta of the high number of visitors from these says Strauss. building, which is a listed building. countries at present, the most important content In addition, visitors to the shopping centre Another key point of attraction in the on the centre’s home page will be translated into get two hours of free wi-fi access per day. extended space was the new 800-square-metre Russian and Czech this year. An English version Management. An active centre management (8,600 sq ft) delicatessen zone with a wide went online in 2014. team at Altmarkt-Galerie supports a constant selection of fresh food. Altmarkt-Galerie also has a style blog, flow of new events in and around the centre, Place making, the web, and social media. which promotes seasonal styles as well as attracting a high number of visitors. The centre ECE is constantly refining Altmarkt-Galerie so offers from tenants. The blog has been running management team is also responsible for public that it is “perfectly configured” to the challenges for one year and has had 50,000 visitors so far. relations work. of the online age. This is greatly aided by the “This allows us to demonstrate our competence The 15-strong on-site management team is shopping centre’s strong central location. in fashion, that we are trendsetters,” says the first point of contact for tenants and visitors, “Staying alive offline means having a meeting Strauss. “This is the emphasis of our centre.” either directly or online. It also supports ECE’s point where people can see each other, feel, Online promotion is supported across several asset management team in its cooperation with taste, smell, and try on and take things. And channels. Visitors can pick up free concert tickets investors, and it is the first point of contact for the nearer you are to the city centre, the better. from the shopping centre’s Facebook page, and city authorities or other institutions. If you’re able to combine those two things, it is find outfits and style ideas for those attending the The management team commissions easy to attract people and encourage them to concert in the centre’s style blog. ongoing intensive market research and come to and stay in the mall,” Hoffmann says. An Altmarkt-Galerie app called “Love “competitor” analyses of nearby shopping ECE has included food and beverage options to to Shop” contains hundreds of offers from centres. It also conducts customer surveys up complement the city’s existing offerings, thereby the shopping centre’s tenants and targets to four times a year in the centre, and arranges facilitating the shopping experience. customers whilst they are in the centre. The focus groups to find out where visitors come That said, use of the web and social media management team employs “scouts” from from, their response to advertising, and their is a key strategy in the promotion and events of agencies that work with tenants to design offers feedback on Altmarkt-Galerie. In addition, it Altmarkt-Galerie—one that is increasingly being to help them be more target-focussed. These regularly analyses data gathered through its used by the shopping centre’s management are then promoted through the “Love to Shop” online communication tools. app or the style blog. team. Launched in spring 2014, a newsletter Altmarkt-Galerie puts on fashion A Facebook page posts all centre-related Events. is now sent to 5,000 subscribers a month. shows, mostly to promote the pre-Christmas news and provides information from tenants Through this effort, the centre management and pre-Easter shopping seasons. Often, these and event notices. Altmarkt-Galerie has 30,000 team monitors “click-throughs” to the shopping are accompanied by competitions. Altmarkt- fans on Facebook, but the management team’s www.uli.org/casestudies Altmarkt-Galerie Case Study 9 Galerie once hosted a living reptiles show. It also Observations and Lessons Learned solutions can elevate a project and allow it to hosted a Russian Christmas in the centre— overcome other challenges. The fact that the Altmarkt-Galerie has ignited and revitalised staffed by Russian-speaking salespeople—as first phase of the project was surrounded on Dresden’s city centre, thanks to close collaboration the city is a key destination for Russians during three sides by multistorey housing blocks, and between developers and local government, a great their Christmas shopping season. had no frontage on a heavily travelled fourth central location, a strong leasing operation, and a side, did not deter the developers nor hinder the Resource efficiency and resilience. compelling plan and design. performance of the shopping centre. Altmarkt-Galerie is subject to ECE’s overall According to ECE, one of the main reasons The central location, a strong leasing strategy regarding environmental efficiencies for the project’s success is a cooperative operation, and the design made the project work. and sustainability in its developments. working relationship with Dresden’s city council, By creating numerous, highly visible entrances Controlled roof openings in the mall with which it established a steering committee. into the courtyard and the shopping centre, and allow for natural ventilation and save energy, The committee, which had a municipal by designing compelling courtyard and interior whilst large amounts of light-emitting diode coordinator for the coordination of all city spaces within the centre, the developers were (LED) lighting is operated by a computerised, offices, was in place from the very beginning able to shape a highly successful retail centre daylight-dependent light control. This has led to so that politicians and all other stakeholders that attracted both retailers and customers and energy savings over time. Energy consumption of the city were committed to the project and that was eventually expanded to embrace the was reduced by a third with the use of new promoted it. surrounding historic areas and retail streets. The technology in the extension. “This committee was one of the key developers’ strong track record in developing, In addition, Altmarkt-Galerie is close to elements, as well as its members who were leasing, and operating retail centres was key to the Elbe River, which presents a flood risk to decision makers. We had regular meetings and this success as well. the shopping centre. The management team steered the project efficiently. So there wasn’t The project received a ULI Award for is responsible for flood risk strategies and back-and-forth over a long period,” Hoffmann Excellence in 2013; and in presenting the contingency management. The opening in 2002 says. “We did have a lot of moments where our award, the Urban Land Institute stated that went ahead on time during one of the worst colleagues went home a bit frustrated. But at Altmarkt-Galerie “is a model for implementation floods the city had ever experienced. the end, when you see the result, after perennial of a project on a historically protected and Since then, provision has been made and intensive struggles, especially with the town archaeologically valuable site and shows that for flood risk. Measuring equipment in the planning and historic monuments authority, over successful business can be reconciled with strict basement allows the team to measure the water the best concept, it is worth having the long- building conservation regulations.” The centre levels and react in case of danger. A watertight lasting approach.” effectively blends old and new buildings and concrete wall surrounds around the entire Dresden’s current mayor, Helma Orosz, traditional and modern retail and office formats to structure. continues to support the investment. She says, shape a compelling user and visitor experience. Long-term development value. On top of “We are proud of Altmarkt-Galerie. It is a true the day-to-day management of environmental asset for the city of Dresden. From an urban outputs, ECE considers Altmarkt-Galerie to be planning perspective, Altmarkt-Galerie is the link a sustainable concept in all respects. between the historic city and Prager Strasse. It “The development phase was very long. increases the attractiveness of the city centre, We started talking about it in 1990, and we for the inhabitants and guests of Dresden had a long-lasting concept in our mind,” says alike. Altmarkt-Galerie also strengthens trade Hoffmann. “Our idea of what is sustainable is and commerce, setting the stage for further perfectly shown in the Altmarkt-Galerie. successful years.” “Everything we do has to be sustainable. With total footfall exceeding 1.3 million each If it isn’t, we are not interested in engaging month, Altmarkt-Galerie has delivered on its in the development. To embark on project goal to concentrate purchasing power in the city development, the long-term investment idea has centre. What is more, this has all been achieved to be sustainable, including rents and turnovers. with an intelligent, resourceful approach to That includes making sure that the tenants don’t development on an extremely narrow, historically CLAUS SVEN FOTOGRAFISCH, important site. Altmarkt-Galerie has received numerous awards, leave after two years because they feel they are including a 2013 ULI Award for Excellence. Pictured with paying too much rent,” says Hoffmann. Altmarkt-Galerie also illustrates how a the award is Nadine Strauss, the centre manager (left), prime central location and creative urban design and Helma Orosz, the mayor of Dresden.

10 Altmarkt-Galerie Case Study www.uli.org/casestudies PROJECT INFORMATION General planners ECE Projektmanagement GmbH & Co. KG Development timeline Heegbarg 30 22391 Hamburg Planning started 1990 Germany Urban design competition 1993 as2architektur Site purchased 1997 Manfred Schomers and Rainer Schürmann Konsul-Smidt-Strasse 8 Construction started 1998 28217 Bremen Phase I completed September 2002 Germany Phase II site purchased 2008–2009 Structural engineer IDN Ingenieurbüro DOMKE Nachf. Phase II construction started 2009 Mannesmannstrasse 161 Phase II completed March 2011 47259 Duisburg Germany

General contractor Phase I: Gross leasable area Strabag Hoch- und Ingenieurbau AG Use GLA Hauptniederlassung Berlin Office 7,300 sq m (78,577 sq ft) Bessemerstrasse 42b 12103 Berlin Retail 64,400 sq m (693,200 sq ft) Germany Hotel 5,300 sq m (57,049 sq ft) Phase II: Parking* — Ed. Züblin AG Albstadtweg 3 Total GLA 77,000 sq m (828,821 sq ft) 70567 Stuttgart *500 underground spaces. Germany Leasing broker ECE Projektmanagement GmbH & Co. KG Heegbarg 30 Land use plan 22391 Hamburg Germany Use Site area Percentage of site Video Buildings approx. 80 http://uli.org/featured-videos Landscaping/open space approx. 20 Interviewees Total 26,150 sq m (281,500 sq ft) 100 Burkhard Hoffmann, managing director, ECE Development & Consulting GmbH & Co. KG Manfred Schomers, architect, as2architektur Hans-Dieter Bogutzki, senior leasing manager, Retail information ECE Projektmanagement GmbH & Co. KG Nadine Strauss, centre manager, Altmarkt- Retail net rentable area 64,400 sq m (693,200 sq ft) Galerie, ECE Projektmanagement GmbH & Number of shops 200 Co. KG Retail GLA occupied 100%

Key retail tenants Retail type Apple Consumer electronics Hollister Clothing Saturn Consumer electronics H & M Clothing SinnLeffers Clothing

continued

www.uli.org/casestudies Altmarkt-Galerie Case Study 11 PROJECT INFORMATION

Key retail tenants Retail type SportScheck Sports Zara Clothing New Yorker Clothing Rewe Groceries Hugo Boss Clothing Gant Clothing Marc Cain Clothing Tommy Hilfiger Clothing Guess Clothing Deichmann Shoes Hugendubel Books Aldi Food Kreutzkamm Gastronomy Viba Food Halloren Food

Office information Equity financing sources Office net rentable area 7,300 sq m (78,577 sq ft) Deutsche EuroShop Number of tenants 16 TLG Treuhand Liegenschaftsgesellschaft ECE/Otto Family Major office tenants Deutsche Gesellschaft für Humanplasma Investment volumes Heinle, Wischer und Partner First phase approx. €190 million (US$201.9 million) Second phase approx. €165 million (US$175.3 million) Hotel information Name ibis budget Dresden City Number of rooms 203

12 Altmarkt-Galerie Case Study www.uli.org/casestudies ULI CASE STUDIES

The ULI Case Studies program highlights and showcases innovative approaches and best practices in real estate and urban development. Each case study About the Urban Land Institute provides detailed information regarding the ideas, plans, process, performance, The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in and lessons learned for the develop- creating and sustaining thriving communities worldwide. ment project. Each also includes project Established in 1936, the Institute today has more than 34,000 members, representing the facts, timelines, financial data, site plans, entire spectrum of land use and development disciplines. Professionals represented include photos, location maps, and online videos. developers, builders, property owners, investors, architects, planners, public officials, real estate www.uli.org/casestudies brokers, appraisers, attorneys, engineers, financiers, academics, and students.

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