The plans include 28 residential units offering a balanced mix of apartments, as well as ten parking spaces and communal ancillary and access areas. The construction method combines solid construction in the central areas with modern solid wood construction in the upper floors, ensuring a high level of living comfort and a building that will retain its value in the long term.

BHB Heidelberg GmbH, a subsidiary of Heureka Real Estate GmbH (Heureka), has sold the development site at Speyerer Straße 5 in Heidelberg via a forward sale to Alpha Evolution PropCo III, a subsidiary of a&o Hostels GmbH & Co. KG. Heureka Real Estate was advised on this transaction by the law firm Corestone Legal. The sale includes the site along with a building permit for the construction of a new hostel a new 320-bed hostel with 118 rooms. The purchase price remains undisclosed.

The initial development plans were adjusted by both parties to account for changes in the market environment caused by the COVID-19 pandemic and changes in interest rates. These adjustments ensured that the project development could proceed and seamlessly integrate into a&o Hostels’ existing real estate portfolio.

The project development and completion of the five-story building will continue to be managed by Heureka Development GmbH, which will oversee project management and implementation as a service developer. “We are delighted to bring this ambitious project to fruition in collaboration with an experienced partner like a&o Hostels, contributing to the revitalisation of Heidelberg’s Weststadt,” said Robert C. Waidhaas, Managing Partner of Heureka.

The new hostel in Heidelberg’s Weststadt district is located near the main train station and benefits from excellent access to public transport. With this location, a&o Hostels is strategically targeting both business travellers and tourists. As Europe’s largest privately operated hostel chain with more than 40 locations in 26 cities, a&o Hostels plans to expand its offering with this new property.

The project is scheduled for completion in 2027. By securing the forward sale and successfully involving a&o Hostels as both the end investor and operator, Heureka once again demonstrates its expertise and capability to advance and execute project developments, even in challenging market conditions.

“Project developer and financier – match in heaven or door to hell?” – This was the motto of Heureka’s Managing Director Robert Waidhaas at the 8th Real Estate Finance Day on November 24, 2021. At the invitation of the conference organizers Targa Communications and Frankfurt School of Finance & Management, he engaged in a fictitious argument with Maik Rissel, Managing Director, aam2cred Debt Investments, in which he argued from the point of view of the project developer. The new and extremely entertaining format was extremely well received by the around 200 real estate and financial experts on site and the online viewers of the event; Continuation possible…

Photo credit: Frankfurt School Verlag