GERMANY: A major mixed use scheme is planned on a waterfront site near the former Berlin Wall - and a Europe-wide hunt for investors has begun writes Derek Scally
SHRINKING MARGINS and tightening credit has taken some of the sheen off the Berlin residential property market. But the agency charged with selling off city-owned property holdings is confident of attracting considerable interest for several commercial developments just unveiled in Berlin.
First up is a waterfront site just released for development, part of a project to redevelop around the dramatic glass and steel central train station that opened two years ago in the former Berlin Wall no man's land. The "Humboldt Harbour" project envisions a new mixed-use city quarter over 48,000sq m (516,667sq ft) with a focus on the arts. The heart of the development will be a gallery quarter, including spaces of 2,000sq m (21,528sq ft) each for permanent contemporary art collection and avant garde young artists.
Around that, the city hopes to create an entirely new neighbourhood of offices, hotels, restaurants and shops along with 40 per cent allocated to residential property.
The Europe-wide tendering process has just begun for the first phase of the development, covering 12,000sq m (129,167sq ft), with developers able to register their interest until the start of December.
"The Humboldt Harbour is one of Berlin's most desirable undeveloped properties," says Ingeborg Junge-Reyer, senator for urban development in Berlin's city-state government.
Her department is working on a development plan for publicly accessible promenades along the River Spree, to ensure the new area is integrated into the surrounding city.
"A new wharf will be built on the harbour's western side, too, to provide optimal access to this central district of the city." The aim of the current allocation procedure is the sale of land to an investor who will build two privately-financed galleries. With the finished venue, the city is optimistic that it can find collectors to loan their works to the gallery.
"Berlin's worldwide appeal is increasingly based on its reputation as a Mecca for contemporary artists," said mayor Klaus Wowereit.
"At the same time, however, the city lacks a suitable venue where the most recent perspectives in contemporary visual art can be adequately presented. One of our key cultural policy objectives is to institute another permanent art venue in Berlin that would bridge the gap."
Those more interested in commerce than culture have a one-off opportunity to invest in two of the city's last remaining historical market halls.
The redbrick covered markets, built in the 1890s in the neighbourhoods of Moabit and Kreuzberg, serve as local shopping centres. The buyer is encouraged to retain the current concept but no obligation exists for the Moabit hall. The Kreuzberg hall has a negotiable future concept as an oriental bazaar. With that concept, the current owner has attracted 70 per cent occupancy of retail units.
Though both market halls have seen better days, the landmark structures have a unique charm that would lend itself to many uses. The Kreuzberg market hall, at the centre of the neighbourhood's buzzing nightlife, is home to a popular beer hall and restaurant and nightclub.
As well as renovation of the existing Kreuzberg structure, the future owner may build an underground car-park.
www.liegenschaftsfonds-berlin.de
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