Der Immobilienentwickler P&P Group kündigt auf der Messe Expo Real zehn neue Projekte bis Ende 2024 an

Real estate industry

Real estate developer P&P Group announces ten new projects by the end of 2024 at the Expo Real trade fair

More than 1,500 residential units and approximately 100,000 square meters of gross floor area will be created by the new construction projects
In addition, a further EUR 100 million will be capitalized from equity for the purchase of land and existing buildings
Considerably lower burden from high interest rates and rising construction costs thanks to past business policy

Fürth/Munich, 5. October 2023 - The real estate investor and developer P&P Group is continuing its growth course despite the poor situation in the overall market. The company announced today (Thursday) at the Expo Real real estate trade fair that it will launch a total of ten new construction projects by the end of 2024; the focus will be on small-scale apartments in the metropolitan regions of Nuremberg and Munich. "All plots of land have been definitively acquired, and some approval procedures have also already been completed," explains Eva-Maria
Zurek, die als CEO der P&P Group auch an der Spitze des Bereichs Real Estate Deutschland steht: „Über 1.500 Wohnungen und ca. 100.000 Quadratmeter Bruttogrundfläche entstehen durch diese Bauvorhaben.“

"We assume that the current investor restraint is only temporary. That is why we are acting against the market trend," says Zurek, describing the company's strategy. "We are glad that P&P Group is so well positioned to invest significantly in the current phase. The slump in residential construction activity will continue for at least another three years, partly due to lengthy planning and approval processes," says Zurek, who took over as CEO in March 2023 from company founder Michael Peter, who is now driving the diversification and internationalization of the company from its new location in London. This year, P&P Real Estate UK Ltd has already made several investments in the British market. In the coming months, purchases of further residential properties in the London districts of Mayfair, Marylebone and Knightsbridge are planned.

Michael Peter explains P&P Group's recipe for success. "We have managed, with sound business policies, to ensure that rising interest rates and construction costs affect us significantly less than many competing developers." Successful measures include the system of awarding construction contracts individually, a stable network of craftsmen built up over many decades, and the use of technical in-house expertise in an in-house construction and planning department. Peter: "This is how we keep costs under control. Also because we didn't participate in the "competitive bidding" for land at the peak of the market. A very good equity base (approx. 50%) and cost control are part of the necessary basis for being able to invest in innovative and sustainable projects."

Other activities proved their worth during the crisis, such as the establishment of a dedicated sales platform for condominiums. This is currently being used, for example, to market SUNSHINE LOFTS in Bamberg - more than 300 modern, light-flooded apartments with an energy-efficiency concept. Via a combination of geothermal energy, heat pumps, photovoltaics, a combined heat and power plant and storage management, 70 percent of the required energy is generated directly on site. "The proprietary platform directly enabled sales successes well beyond our expectations," explains CEO Eva-Maria Zurek.

Two of the ten new projects - both offered to institutional investors - will be presented by P&P at Expo Real: In Nuremberg's trendy Gostenhof district, on Maximilianstrasse, the project developer is building a student residence with 94 one- or two-bedroom apartments. More than a third of them are barrier-free. A special feature is the "Garden for All" concept, which enables interested students to engage in urban gardening. A roof terrace and communal kitchens will also ensure a good communal experience.

P&P is also building 121 energy-saving apartments of efficiency house level 40 (KfW 40 EE) close to the city center in the Schweinau district of Nuremberg on Kreuzsteinstrasse. The units with an average size of 65 square meters and up to three rooms include a children's playground, 57 parking spaces in an underground garage and 218 bicycle parking spaces.

"These two of the ten new projects exemplify how we have good opportunities in the current situation to respond to housing shortages and create real estate value," says Zurek: "This is how we intend to seize the historic opportunity that is opening up thanks to our good economic situation. We can tackle new projects as well as take advantage of the trend toward energy-efficient and ESG-compliant housing, while many other developers are pulling out of the market. Especially at a time when a turnaround is more likely due to the decisions of the Building Summit."

The projects to be launched, which have already been acquired, will not be the end of the growth course. Zurek announces, "P&P will soon provide another 100 million euros from equity for purchases of land and existing buildings with revitalization potential, continuing to focus on the Nuremberg and Munich regions. We are pleased and proud that we can consistently pursue this strategy in view of the healthy business performance of the past."