NORD PROJECT, a property developer, has sold a total of 69 publicly subsidised new-build flats in Lüneburg to WohnRaum Niedersachsen. This transaction took place as part of a forward deal for the units, which are being constructed on the southern part of Exerzierplatz. The state-owned company will take over the property after its planned completion, scheduled for mid-2028. The acquisition was announced at the Expo Real property fair in Munich.
The flats comprise a total area of 4,461 square metres. Upon completion, approximately one-third of households with low incomes will pay a rent of 6.90 Euro per square metre per month. The remaining two-thirds of households with moderate incomes will pay 8.40 Euro per square metre per month. These rental prices are approximately 40 to 50 percent below typical rates for privately financed housing.
Strengthening Presence and Cooperations
Michael Molz, Managing Director of WohnRaum Niedersachsen, emphasised that the acquisition of these residential units strengthens the company's presence in Lower Saxony and expands the contractually bound portfolio to nine individual projects at eight locations within the state. This aligns with the long-term growth strategy. Leon Friege, Project Manager at WohnRaum Niedersachsen, highlighted the relevance of trust and structured cooperation in such project acquisitions. NORD PROJECT, NBank as a financing partner, and WohnRaum Niedersachsen are thus making a substantial contribution to providing affordable housing in Lüneburg.
The city of Lüneburg aims to create approximately 3,500 new homes between 2021 and 2040, in accordance with its housing supply concept. The subsidised housing construction by NORD PROJECT is undertaken on a voluntary basis. Lüneburg's City Planning Councillor Maja Lucht described the project at the corner of Adolph-Kolping-Straße / Horst-Nickel-Straße in the Hanseviertel as exemplary. There, 69 rent-controlled flats are being built in an environment with diverse forms of housing and ownership, which promotes a liveable urban district. Ms Lucht reaffirmed further support for projects that increase the supply of affordable and sustainable housing in Lüneburg.
Project Features and Financing
Jürgen Paul, Managing Director of NORD PROJECT, pointed to the design challenge of developing the former Schlieffen barracks site, particularly regarding the high-quality design of the entrance area to the Hanseviertel. Lars Pulvermacher, Project Manager and Authorised Signatory at NORD PROJECT, confirmed the success of this task with the recently granted building permit. The swift processing of the building application by the city of Lüneburg enables construction to begin promptly. In addition to the residential units, approximately 290 square metres of commercial space will also be created, which will remain under their own ownership and are intended to supplement local essential services.
The 4,420 square metre plot in the Neu Hagen district in eastern Lüneburg is considered attractively developed. In the immediate vicinity, there are shops, service providers, medical facilities, day-care centres, and restaurants. The historic city centre is just as easily accessible by public transport as educational institutions and the main railway station. The affordable rents are made possible by financing from NBank, which has supported the project from the outset. Michael Kiesewetter, Chairman of the Board of NBank, emphasised the necessity of interplay between subsidies, public authorities, and private investors to create affordable housing. The borrower is MMW Nord Lüneburg HN GmbH & Co. KG. NORD PROJECT is investing a double-digit million sum in this project. A collaboration between NBank and NORD PROJECT already exists for a total of eleven subsidised housing projects. Since 2019, the total investment in subsidised housing in Lower Saxony amounts to over 110 million Euro.
Long-term tenant protection for the flats is secured. Rent increases are only permitted within the legally stipulated limits during the minimum 30-year binding period. The Goldbeck Group is commencing construction as general contractor, with the building being executed to the EH-40 energy efficiency standard. This means that, upon completion, the property will consume less than half the energy of a standard house according to legal requirements.
