Building permission granted for conversion of the “Otto Dix Passage” in Gera – financing secured
After the building application for the conversion of the newly designed “Otto Dix Passage” in the inner city of Gera was submitted to the specialist service for building projects and urban development in Gera at the end of December 2018, the building permission was granted after a processing period of only 2 months – on March 8th, 2019. With the approval of the redevelopment permit after only 2 months, nothing stands in the way of the comprehensive redevelopment of the “Otto Dix Passage”.
The gutting work on the shopping centre will be completed by August this year. At the same time, the last remaining tenants, such as Rossmann and Blume 2000, have moved out of the “Otto Dix Passage”. Thus, all previous tenancy agreements are annulled. In the next few weeks, the aim is to find a general contractor and to start the shell construction work in the 4th quarter 2019.
In order to finance the planned reconstruction works, ARCADIA Financial Services GmbH brokered a loan agreement for the necessary project financing between the project company and Hamburg Commercial Bank AG in addition to the equity capital deployed.
Already in April 2018, ARCADIA had acquired the inner-city shopping centre with a rental area of more than 14,000 square metres at Museumsplatz 2 in Gera and the adjacent multi-storey car park with approx. 375 parking spaces and announced plans for the conversion and revitalisation. The old shopping centre is to be reopened with attractive tenants and will become the heart of the city centre. In this way, the new “Otto Dix Passage” will once again do full justice to the prime location between Markt, Sorge and the Gera-Arkaden.
ARCADIA Investment Group
The ARCADIA Investment Group specialises in the development of retail properties, residential properties as well as car parks and underground car parks throughout Germany. In addition to activities relating to the company’s own portfolio, it has also implemented a host of projects in the framework of joint ventures – amongst others in close cooperation with several national and international investors. The company’s core business also includes the optimisation, maintenance and expansion of the property portfolio of family businesses with the utmost care and confidentiality. ARCADIA Investment GmbH, the holding company of the Group, currently employs 37 people and is currently developing areas with more than 300,000 square metres of space nationwide. The associated project volume currently amounts to approximately 300 million euros.