Real estate - Old Presidium: Frankfurt fears further delays
The old police headquarters is one of the largest construction projects in Frankfurt, but new delays are looming following the insolvency of further companies belonging to Düsseldorf-based developer Gerch. After the investor, who once bought the site from the state of Hesse for around 212 million euros, had to file for insolvency back in August, Gerch's responsible project companies have now also gone bankrupt. They filed for insolvency at the Düsseldorf district court at the end of December, the provisional Gerch insolvency administrator Jens Schmidt announced on Thursday.
The City of Frankfurt is alarmed. The announcement of insolvency is viewed with great concern, "as it means a further delay to the project", explained a spokesperson for the Department of Planning and Housing on Thursday. However, the urban development goals for the site remain in place, as the development plan and the urban development contract have created the essential prerequisites for the development of the site.
"In addition, urban development contracts also apply to legal successors," emphasized the spokesperson. "We will therefore be talking to Gerch and the provisional insolvency administrator in the coming weeks to explore options for action on the basis of the contract." The city will examine all options in order to develop the site of the old police headquarters as soon as possible.
Provisional insolvency administrator: patience required
On the site, which has been vacant since 2002 and where a "Tatort" episode was filmed, a modern district with offices, shopping areas and a 175-metre-high residential tower as well as the listed building was to be created. The site near the trade fair and main railway station covers 15.4 hectares. According to previous information, Gerch wanted to invest around 800 million euros and the site should be ready for occupancy in 2027. In March 2023, the City of Frankfurt and Gerch concluded agreements on the use of the site in an urban development contract. Plans included a daycare center and apartments.
The "Praesidium" project in a prominent location offers one of the last large development sites in Frankfurt's city center, explained provisional insolvency administrator Schmidt in a statement obtained by Deutsche Presse-Agentur. "My team and I will do everything we can to continue this promising project and achieve the best possible satisfaction for the creditors". According to industry experts, however, "in view of the adverse circumstances in the real estate sector, a little patience is required for the time being".
Gerch, with planned projects of around four billion euros, filed for insolvency last summer due to the threat of insolvency. The reason for this was the rise in interest rates, inflation and the reluctance of real estate buyers, it was said at the time.
Gerch on the Old Police Headquarters project
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- Despite the insolvency of more companies associated with Gerch, the development goals for the old police headquarters in Frankfurt, Germany, remain unchanged, as stated by a spokesperson from the Department of Planning and Housing.
- The City of Frankfurt is concerned about the potential delay in the project, as announced by the Düsseldorf district court, but is actively exploring options with Gerch and the provisional insolvency administrator to expedite development.
- Located in a prominent area and offering one of the last large development sites in Frankfurt's city center, the Old Police Headquarters project is a promising venture for the city and its future development.
- The construction of a modern district with offices, shopping areas, a residential tower, and a listed building was planned for the site, but the timeline is now uncertain due to the insolvency proceedings.
- With Gerch's filing for insolvency last summer, the company's planned projects, totaling around four billion euros, were disrupted, primarily due to rising interest rates, inflation, and reluctance of real estate buyers.
- The provocative title of a local newspaper, "Frankfurt on the Main: Delay in the Old Presidium," reflects the community's growing concern over potential setbacks to the project and its impact on the city's real estate market.
Source: www.stern.de
