German bank pbb Deutsche Pfandbriefbank has provided a €140 million loan to local developer Gerchgroup to fund a land acquisition in Cologne, Germany.
The Dusseldorf-based developer will use the 160,000-square-meters plot to build a new city quarter within the Deutz site, a former industrial area. The residential scheme will also include commercial developments.
“The Deutz area is a fascinating inner-city development and the loan facility is certainly one of the larger transactions of this kind in Germany in 2017,” said Gerhard Meitner, head of real estate finance in Germany at pbb.
The development is expected to be completed by end of 2018 and Gerchgroup is planning to spend around €1 billion on the site.
“The development potential [of the site] is enormous. We have a great urban location in a huge area with which we can offset the increasing need for space in the city of Cologne,” Mathias Düsterdick, chief operating officer of Gerchgroup said in May, when the site was acquired.
Last month, pbb financed another development in Munich’s city centre, with a €112 million loan provided to the Brecht-Bergen family.
The private client is developing the so-called KARL ¬– a new commercial real estate development designed by London-based architect David Chipperfield – at Karlstrasse, near Munich’s central railway station. The majority of the mixed-used building will house offices.