In connection with its private equity investments, DERECO, a multi-family office for real estate assets from Cologne, has become a capital partner for a project development at Karlsbader Platz in Wiesbaden. Operationally, this joint venture will be managed by Hanseatic Holding from Hildesheim.

The plot (approximately 13,000 sqm) is located on the corner of Konrad-Adenauer-Ring and Homburger Strasse. Hanseatic and DERECO are planning to develop a new construction with some 5,000 sqm of retail space on the ground floor, which is already let to a supermarket, plus some 170 flats and underground parking for about 340 cars. Project volume totals approximately EUR 60m. Building activities are set to start in late summer, with completion scheduled for summer 2017. Wiesbaden’s highest administrative body, the Magistrat, has granted a preliminary building permit (Bauvorbescheid).

DERECO intends to acquire a shareholding in another three to five projects later this year with approximately EUR 50m in additional equity. “We envisage funding projects with a volume of EUR 250m to 300m per year with our capital injections,” says David Noll. DERECO has set out to invest each year within this business field. The plan is to make up to 100% of the equity required available for joint venture partners.

In this context, DERECO focuses on project developments across Germany in the housing, retail and office segments in cities and towns with a population of at least 50,000 and with very good key indicators for the local economy. Preferably, individual project volume should amount to a minimum of EUR 25m. As a maximum value, DERECO’s intention is to acquire shareholdings in selected projects worth up to EUR 100m. Partnering up with projects is not restricted to realisation phases (construction, pre-letting, selling, etc.) but can also take place at an earlier stage (the building permit process, usage and tenancy concepts, etc.) when it comes to promising neighbourhood developments.