Residential real estate developers Instone Real Estate will contribute to the development of a new, attractive inner-city quarter on the former Avaya site in Frankfurt's "Gallusviertel" area. pbb provides approximately €140 million for the purchase of the plot. The development has already been sold to an institutional end-investor, prior to the start of construction.
The project provides for approximately 1,200 residential units – with aggregate floor space of around 93,000m² – to be built on the 51,000 m² site, alongside a full-range food retailer and three daycare facilities for children. About one-third of the units are planned for construction under public subsidies. The work is scheduled to start in 2020.
Gerhard Meitinger, pbb's Head of Real Estate Finance Germany, emphasised: "We are delighted to support Instone as a financing partner for this exciting project, which develops urgently-needed residential space in Frankfurt, with a balanced future tenant mix and affordable rents. Residents will benefit from the advantages of an attractive, contemporary development, with newly-built housing in a well-established quarter and in a central Frankfurt location."
Dr Foruhar Madjlessi, CFO of Instone Real Estate, commented: "Leveraging our long-standing expertise in the overall development of large city quarters, we will be transforming what used to be an expanse of offices into a new, mixed-use residential environment. We strongly appreciate having pbb at our side as a reliable financing partner for this key city quarter development."