The Cologne-based multi-family office for real estate assets DERECO sold the “CityGate” residential and office construction in Siegburg near Bonn to the Kaiserschild Stiftung, a foundation established by famous Haribo confectionary producer Hans Riegel. Back in 2013, DERECO had originally acquired the “CityGate” – a certified green building – from the Interboden developers by way of a forward deal as an addition to a Dutch family’s portfolio DERECO was commissioned to manage.

The property is located in the middle of Siegburg’s pedestrian zone. The 1,560-sqm plot is built up with approx. 4,280sqm of tenancy space, just under 60% of which is retail space on the ground and first floors. The remainder includes a total of 17 top-of-the-market apartments on the second and third floors and a 300-sqm office unit on the first floor.
With its rounded façade on a street corner, this property is an appealing landmark located on the edge of the highly frequented market square of Siegburg – hence the name.

“The Siegburg property contributed extremely positively to the overall performance of the portfolio. We’re pleased we’ve been able to disinvest it at an ideal point in time in the economic cycle of the real estate industry,” says Jörg Kohlhaus, Head of Investment and Asset Management at DERECO.
The return Kaiserschild Stiftung is to receive on its real estate investment will enable the foundation to maintain existing charity projects and facilitate even more of them in future. For this transaction, Kaiserschild Stiftung received advice from Flick Gocke Schaumburg (Bonn) and Larbig + Mortag (Cologne). DERECO obtained advice from the Berlin branch office of the TaylorWessing firm.
It was agreed not to disclose the selling price.
“With the sale of the Siegburg property, the real estate stock of this portfolio mandate has now been dissolved entirely. Proceeds have been considerably above budget. They’re intended to be used in full to fund other real estate projects offering upside potential,” says David Noll, Chief Investment Officer and a member of DERECO’s board of management.

For additional purchases, DERECO is searching the German market for existing properties and plots with a potential to increase in value. Relevant market segments include offices, housing, retail and hotels. In addition, DERECO is looking for developable land for new projects. Investment sums range between a minimum of EUR 20m for individual properties and up to EUR 500m for large neighbourhood projects. Besides top locations across the country, prospering cities and metropolitan areas with a population of at least 250,000 will be considered.