Health district for Magdeburg Sudenburg: HD Group develops health care property in Magdeburg, the leasing is to RENAFAN GmbH

The Berlin HD Group is developing a health district in the Sudenburg district of Magdeburg that implements the current trend towards outpatient and semi-inpatient forms of care. The area consists of several rounding-off plots on which a new building with the types of use service living, day care and two dementia living groups are to be realized. A total of 92 residential units will be built on 5,500 square meters of usable rental space and 7,200 square meters of gross floor area, including 68 apartments for assisted living and 24 apartments for dementia.

The building application process is currently in progress, the preliminary building permit is already available.

The project development has already been rented out in full. The main tenant is the Berlin care service provider RENAFAN GmbH. The Potsdam company Komfort GmbH was tied as a tenant for the dementia apartments. The leases have already been concluded for 20 years with the option of a further 2×5 years.

With the RENAFAN Group, which was recently named Operator of the Year 2020 at the AltenheimEXPO, the growing demand for barrier-free service living in a central location can now be met, among other things. At the same time, the tenants are offered needs-based, more intensive care if this becomes necessary without them having to leave their familiar surroundings. People with dementia can take advantage of the day care offer or receive individual care in assisted living, whereby the greatest possible independence is maintained and supported.

There is currently also sustained interest on the part of financing and end investors.

It was only in September 2019 that the HD Group sold the Sudenburg practice clinic, the largest medical care center in Saxony-Anhalt, to a special Captiva fund for healthcare properties. The practice clinic is located on the neighboring property of the newly emerging quarter.

As a professional and experienced real estate service provider, we have in-depth experience in the development of health and care properties, says Herbert Dzial, Managing Director of the HD Group. Our Magdeburg project will make an important contribution to the accommodation and care of older people in particular here in the region. We are pleased that we have already been able to win well-known care service providers as tenants for the health quarter.

The year 2022 is planned for the completion of the new building in the south of Magdeburg.

About the HD Group:

The HD Group, based in Berlin, has many years of successful expertise in the area of ​​project development for residential, commercial and retail properties in Germany. Under the umbrella of the holding company, the HD Group offers a wide range of services, from project development to project management, investment management and property management.

About the RENAFAN Group

The RENAFAN Group is one of the leading service providers in the areas of care for the elderly, intensive care and services for the disabled. Outpatient and inpatient care, innovative living and care options, intensive care and assistance for disabled people: our diversity makes us unique! We also provide employees with locations and working time models that are ideally suited to their living situation. We offer our service at more than 70 locations. Almost 7,500 people trust in our competence and reliability. The RENAFAN Group is characterized by uncompromising customer orientation and constant innovation. We have over 25 years of experience in individual service for people who need our support. Our maxim is: as much independence as possible – as much care as necessary. Our strengths are a comprehensive network, tailor-made care solutions, a wide range of offers, well-trained employees and integrative concepts.

Since May 1, 2019, the HD Group has been the management of the H.D. Immobilien Holding GmbH strengthened by Ralph Ziegler. In this position, Ziegler is responsible for the financing of the project companies, in particular through the expansion of investment solutions for private investor clubs, and complements corporate management in the acquisition of projects as well as in the implementation and marketing of existing project developments.

“Ralph Ziegler has many years of experience in the implementation of transactions and the support of investors and has recently focused on the acquisition of project developments with a district character. As a project developer, the HD Group sees attractive future business opportunities in hybrid forms of use, in micro living and in health and care properties, ”explains Herbert Dzial, founder and managing partner of the HD Group.

Ralph Ziegler has almost 25 years of professional experience in the real estate industry and was most recently a managing partner for Capital Bay Transaction Management GmbH. Prior to that, he held management positions for many years at the Deutsche Wohnen Group and at Warburg-HIH in transaction management and business development, where he successfully implemented investment solutions for wealthy private customers and institutional investors.

As a project developer and investor, the HD Group can look back on over 30 years of experience in the real estate industry. The focus is on the development and revitalization of residential and commercial properties. With in-depth specialist knowledge and a conscientious approach to urban society, urban space and the environment, the HD Group, together with specialized cooperation partners, responsibly devotes itself to each of its real estate developments.

The range of services extends from acquisition, market and location analysis, property planning and conception, through financing, purchase, rental in accordance with the concept, procurement of building permits, controlling, project calculation and management to asset management (strategic property management) and sales.

The HD Group has been able to increase the letting rate of the Burggalerie since the acquisition of the property by a good of 40 percent and now stands at over 90 percent. Large-scale leases with four anchor tenants for the shopping center were successfully concluded. For a Rossmann branch, Dirk Rossmann GmbH rented an area of ​​around 950 m². In addition, approximately 1,450 m² of retail space was leased to Woolworth and around 530 m² to TEDi. The future-proof concept for the shopping center was also convincing to the EKZ-based expert electrical retailer HERFAG Elektronik GmbH which concluded a new long-term lease for around 1,630 m².

Following the granting of the building permit, the revitalization measures for the inner-city shopping center began last autumn. The property now shines with a total rental space of around 6,435 m² in new splendor.

The medical care center is extensively revitalized both indoors and out. The works include painting in the common corridors, the staircases and elevators, the renewal of the signage and the laying of floor tiles indoors. The facade of the building will also shine in new splendor. In addition, an existing tenant was acquired, which will increase its rental space from approx. 280 m² to approx. 560 m². Likewise leases could be extended to a term of 10 years. The occupancy rate of the clinic is thus around 91 percent. When buying the property last summer, the level was 84 percent. According to the current state of planning, the facade painting is scheduled for May 2018. The practice clinic will also remain open for visitors and patients.

From 08.10. until 10.10.2018 this year’s real estate fair “Expo Real” took place. For the first time we decided to become part of the premium partnership at the Berlin Brandenburg stand. For our HD team the real estate fair was a great success. There were constructive discussions and we were able to revive old business relationships. Our current real estate projects were presented to the market and especially to our business partners. We are already looking forward to the coming year!

In April 2018 the HD Group bought a 5,500 m² plot in the north of Lisbon. On the property in the Lisbon municipality (Freguesia) São Domingos de Benfica the first housing project of the company in Portugal is planned. According to the current state of planning it comprises three buildings with 158 apartments as well as offices, retail space and 215 parking spaces. The above-ground gross floor area is approx. 22,400 m². At the neighboring property an administrative building for about 1,500 employees is currently being developed for the Portuguese central bank (Banco de Portugal). The investment focus is particularly on the metropolitan region of Lisbon, where housing and student housing projects will also be realized in the future. © Luis Narciso Arquitectos, LDA

The HD Group bought the practice clinic Sudenburg in the south of Magdeburg in the form of a share deal. With the acquisition of the health care property the HD Group is returning back to the healthcare sector. The medical care center covers an area of around 8,100 m² and consists of a total of 19 units consisting of apartments and practices in various areas of nursing. On the exposed property next to the clinic a supervised facility is to be developed and sold through a perimeter block development.

News on the project Greifswalder Straße 30 in Berlin. At the end of February 2018 the HD Group was granted planning permission for the construction measures – refurbishment of existing buildings as well as modernization, floor extension and new construction of a residential building. In the near future several polls will be held with all planning participants and the final planning will be completed. The expected start of construction is scheduled for spring 2019.

The retail center “Kannenstieg-Center” in the northern district of Magdeburg was sold to a Luxembourg investor. The economic transition took place on 15 December 2017. The two-storey property offers a number of 125 parking spaces and consists of 28 rental units distributed over approx. 5,332 m² of rental space. The center is characterized by anchor tenants such as EDEKA, ALDI, ROSSMANN and KiK. The building was originally built by rebuilding and expanding a former department store.