FAST, CAPABLE, FINANCIALLY STRONG
“SEIZING OPPORTUNITIES IN THE CRISIS”
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The situation on the real estate market remains challenging. How is ECE Work & Live responding?
Henrie W. Kötter: We’re looking for projects where we can play to our strengths: Our strong financial position, our ability to act quickly as a family-owned business, and our decades of expertise in all asset classes, with in-house specialists across all areas. These strengths mean we can respond very flexibly and seize opportunities that arise out of the current crisis: whether that be new construction projects, further development of projects that have already started, or conversion of existing properties. We’re currently focusing on shorter-term projects in the €40–100 million range.
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What asset class are you especially focusing on at the moment?
Due to the high demand for housing, the residential asset class is generally very attractive. However, there’s often still a mismatch between construction costs and market prices. So our teams need a great deal of expertise to make projects viable in the current conditions. One of our most exciting current projects is TIDE in Hamburg’s HafenCity – a neighborhood with high-quality rental and owner-occupied apartments, a student residence hall, and the Digital Art Museum, which we started construction work on last year. It’s one of the last major developments in HafenCity.
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How about the logistics segment?
Demand for logistics real estate remains very resilient. We’re focusing on developing modern logistics centers and mid-sized industrial parks. In Hamburg’s Billbrook district, we’re currently finishing up the first logistics center to be built fully in accordance with our ESG code. In Marl, we’re working with Thalia to develop a new commercial and production site. And near the Tesla Gigafactory just outside Berlin, we’re planning the GreenWorkPark Grünheide on a former military site.
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What other areas are you working in?
We’re seeing some exciting potential to convert old downtown offices into hotels. We’ve already started one such project in Rome and have now acquired another property in Copenhagen. But there’s still strong demand for new offices that meet the requirements of modern ways of working and ESG criteria. And so it didn’t take long before the Campus Hamburg office building that we developed was fully let. Our project in MesseCity Cologne, with major tenants including the Zurich Group and KPMG, is also nearly complete. >
Seize opportunities when they arise: That is the strength of ECE Work & Live. In this interview, Henrie W. Kötter, CEO of ECE Work & Live, talks about opportunities in the European real estate market, the conversion of existing properties, and the need for deregulation in Germany.
3.5 billion €
CONSTRUCTION AND PLANNING VOLUME ECE WORK & LIVE
3,500
HOTEL ROOMS COMPLETED AND PLANNED
10,000
APARTMENTS COMPLETED, PLANNED, OR UNDER MANAGEMENT
2 million m²
OF LOGISTICS SPACE COMPLETED AND PLANNED
“Our working relationship with ECE is characterized by a high degree of professionalism and strong partnership. We’ve completed numerous projects together on budget and on time.”
NILS WENDLER
MANAGING PARTNER OTTO WULFF BAUUNTERNEHMUNG GMBH
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What opportunities does the European real estate market offer?
We’re focusing on attractive, rapidly growing European cities like Rome, Copenhagen, Warsaw, and London, which have a shortage of attractive, affordable housing and are also popular tourist destinations – making them appealing for hotel developments. Another advantage is that construction is cheaper and easier in many European countries because there’s less red tape. For instance, we’re planning a new residential complex with attractive condos in Rome. At the same time, we’re currently finishing up work on our first logistics center in Poland.
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What needs to change in Germany to help boost housebuilding?
In the short term, we need a strong stimulus, like a temporary suspension of land transfer duty, tax allowances for interest on owner-occupied properties, or an expansion of KfW development loans to provide more financial flexibility. In the medium term, we need to do away with the very German obsession with regulation and significantly speed up the planning and approval processes. While each regulation and assessment may make perfect sense in isolation, taken together they’ve caused construction.
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What’s needed in the long term?
Essentially, we need the courage to make a new start. Politicians must provide a framework and leave it to the creativity of developers and architects to come up with the best possible innovative solutions within that framework. And we need to put more trust in experts: A heart surgeon doesn’t need prior approval before each operation. So why does an architect always need planning permission, even if they’ve fully complied with applicable regulations?
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Looking ahead, what do the next few years have in store?
We’ve realized that it’s very hard to make predictions in this highly dynamic and sometimes fragile world. So we’re positioning ourselves to be fast, flexible, and resilient. For example, last year we directly integrated architecture and project management services into our Work & Live division. We also work with carefully selected local partners. Another factor that builds resilience is our very strong focus on sustainability – not just on paper but in very concrete terms, at every stage from location analysis to construction to sustainable use concepts. Because nowadays, economic and environmental sustainability usually go hand in hand. //