Engine manufacturer Deutz has sold the land occupied by its former Cologne-Deutz site in Germany to the Düsseldorf-based project developer Gerchgroup.
After Deutz relocated its site to Cologne-Porz in 2015, the 160,000m2 premises were no longer required by the company.
Gerchgroup has stated its intention to redevelop the former industrial site, which is located close to the river Rhine, by creating a new city district with a high proportion of housing.
Deutz expects to receive approximately €125 million as purchase consideration this year. Then, depending on the completion of the ongoing planning process, the company expects to get a further, final instalment of the purchase consideration in the coming years.
The exact amount is not yet known but, provided the planning application is successful, it is believed the figure will reach into the double-digit million euros – a positive contribution to this year’s earnings, after taxes, which Deutz said will be recognised as an exceptional item.