From industrial site to city quarter
What is the best exit strategy for an industrial site and what subsequent use concepts impress investors? In cooperation with JLL, Deutz AG was able to substantially increase the forecast sales price for its former site premises.
Spotlight
Quarter development & exit strategy
Square Metres
approx. 250,000 - 300,000 sqm GFA above ground
Location
Cologne-Mülheim
Industry
Residential, Retail, Commercial, etc.
Value
~ €800M - €1.2B
Deutz AG had come to a decision: to sell the company site in Cologne-Mülheim. The question was, however, when was the best time to sell and what subsequent use concepts would appeal to and impress investors? Deutz AG approached JLL with these questions, awarding a commission to develop a use concept which not only honoured the historical value of the industrial site and developed an attractive quarter for the city of Cologne, but also guaranteed economic success for Deutz AG. The correct time and the optimal exit strategy were then to be determined on the basis of this concept.
How we worked together
“We are delighted that we were able to generate such a profit from the sale and that our former site will be given a new and meaningful lease of life as an urban quarter”.
To kick off the project, JLL assisted the manufacturer of small and large engines in procuring the necessary building rights and compiling the requisite assessments – from transport and noise assessments, to the soil survey and species conservation – and then begin negotiating the conditions and contracts for construction with the respective authorities. Together with the Michael Zimmerman architecture office, the interdisciplinary JLL team developed a use concept which considered residential, office, retail, education and mobility in equal measure. The first sales discussions took place later and resulted in a recommendation for the exit strategy.
Resolution
Both the time and the sales strategy paid off, delivering an outcome which far exceeded the original expectations of Deutz AG.
Deutz AG’s company premises occupy a 160,000 m² site directly in Cologne-Mülheim, on the Rhine.
The new use concept includes residential, office, retail, school and childcare, as well as green spaces.
Where old industrial halls are located today, a vibrant city oasis will enrich Cologne’s life in the future.
An interdisciplinary JLL team developed the use concept and the zoning plan for the site.
During development, the interests of the city, environmentalists and the heads of cultural departments had to be coordinated.
