Insolvency Administrator Sells Part of the Southern Building Plot of Laurenz Carré in Cologne to a Company of
THE FLAG Group

Cologne, July 24, 2024. More positive news for the development of the Laurenz Carré construction project in Cologne: Just two months after the sale of the northern plot of the Laurenz Carré to HanseMerkur Grundvermögen, the insolvency administrator has successfully sold a part of the southern plot. THE FLAG, a second-generation family business based in Attendorn, has now acquired the residential part of the southern Laurenz Carré. On July 23, 2024, the main committee of the City of Cologne approved this sale. The leasehold property of the city is currently developed with a parking garage and the former Music Store Cologne. The approximately 1,380 m² plot is located at 10 Marspfortengasse, in close proximity to the pedestrian zone, the cathedral, and the main train station.

30 Percent Requirement for Subsidised Housing

The area is to be developed for residential use, following the original concept of the insolvent project developer GERCH, with 30 percent of the space allocated for subsidized housing. The notarial contract has since been signed. The parties have agreed to keep the purchase price confidential.

Construction of Apartments for Students

Dr. Eike Muhr, Managing Director of THE FLAG, emphasizes the excellent location of the plot, which is ideal for building apartments for students and young professionals. "We are very pleased that, following the acquisition of the former administrative building of the General Customs Directorate and the Federal Office for the Protection of the Constitution in Cologne Nippes last year, we can now implement this prestigious project in the heart of Cologne. The new building is planned to be constructed using hybrid timber construction. Planning and submission of the building application will commence immediately," says Managing Director Eike Muhr.

Further Development of an Important Urban Project

"With the sale of the residential part of the Laurenz Carré, one piece of the puzzle is being added after another in this important urban development project. The location is exceptional and unique, so we were always confident that this project would continue. Therefore, we are very pleased to have found a strong partner in the investor THE FLAG for the residential part of the Laurenz Carré, together with the involved advisors Jones Lang LaSalle and One Square Advisors," explains insolvency administrator Dr. Jens Schmidt of the law firm RUNKEL Rechtsanwälte from Düsseldorf. Schmidt was appointed insolvency administrator for the Gerch project companies, which previously aimed to develop the Laurenz Carré.

"I am extremely satisfied with the rapid reactivation of the project and particularly thank the colleagues from the city administration team, who played a significant role in the successful acquisition of THE FLAG. This is exemplary for Germany, showing how such insolvent projects can be reactivated. Urbanistically, it is an important component for the redevelopment of the inner city and thus a contribution to successful urban repair in the vicinity of the cathedral," says Markus Greitemann, Deputy for Planning and Construction of the City of Cologne.

THE FLAG as an Ideal Partner

Sven Wehrenberg, Project Manager at Jones Lang LaSalle, adds: "With THE FLAG, we have found the perfect partner for this location, who will help shape the future cityscape. Additionally, we are confident that we will soon be able to present a solution for the listed Senatshotel together with the insolvency administrator."