Four Parx builds upwards

Francisco J. Bähr, Managing Partner of Four Parx GmbH, explained the realignment: "We assume that there will be a demand for around 30 million square meters of logistics space in Germany by 2025. We want to meet the high demand and the increasing requirements of users with the speculative project development of standardized concepts. In city centers and on selected sites, we are building multi-storey buildings. With rising land prices and hardly any available space, this is now also paying off in Germany."

In line with the two-storey "Mach2" real estate concept, three projects are already being implemented, two of which are located in the central European Rhine-Main logistics region and another in zip code area two. Four Parx has secured former production sites at all three locations in order to develop multi-storey properties on these brownfield sites. Four Parx already has two further projects of this type in the pipeline.

Sustainability and social aspects taken into account

Four Parx is working on the economic, ecological and social sustainability of logistics properties and is aiming for sustainable construction in accordance with the DGNB Gold standard for all three projects. The measures include an energy-saving control system for lighting and power supply. The use of wind power is an option at suitable locations. Charging stations are planned for trucks, sprinters, cars and even e-bikes. An intelligent parking system or an autonomous electric shuttle will reduce the number of parking spaces and improve safety. Compared to a conventional hall, Four Parx estimates that it will require twice as much electricity. The former production sites have sufficient electricity capacity in all three cases.

Implementation by the end of 2020

Construction is scheduled to begin at the three locations in the third quarter of 2019 and completion is planned for the end of 2020. The demolition of existing buildings and the upgrading of the land is scheduled for the beginning of 2019. A total of 215,000 sqm of commercial and logistics space with office and social space will be developed on two floors at three locations. The total investment amounts to around 300 million euros. According to Four Parx, joint ventures and forward funding will be used as financing models. Bähr puts the higher construction costs for the multi-storey structure into perspective: "If you consider that two halls are being built on top of each other, the additional costs are reasonable."

According to Four Parx, the achievable rents for the first floor are in the range of the local prime rent and initially slightly lower for the upper floor. But only until the market has tested and accepted multi-storey logistics properties. Four Parx believes that rents on the upper floor will then rise to the same level. This is because, apart from a limited floor load of 3t/sqm on the upper floor, multi-storey halls can be used like any other on both levels.

Bähr estimates that demand for multi-storey logistics properties will increase in the long term. Interest is already high even before marketing begins: "Real estate for city logistics is in demand and urban land is scarce and expensive. We have already received expressions of interest for individual locations, although the three multi-storey logistics properties are not scheduled for completion until the end of 2020," says Bähr.

GSE as exclusive general contractor

Four Parx is realizing the new multi-storey facilities exclusively with GSE Germany as general contractor. The two-storey construction method poses special challenges, which GSE is solving using the "Design & Build" process model it developed.

The company is the market leader in France and has already completed a two-storey logistics property there. In Germany, GSE has built the GG RheinMain industrial and logistics park with 110,000 sqm of warehouse space in Groß-Gerau on the former production site of Südzucker AG for Four Parx, among others, which will be completed at the end of 2018.

"Urban" and "Global" also being implemented

Other new concepts from Four Parx are also being implemented: the first project based on the "Urban" concept will be completed in 2018. Four Parx is creating 1,600 sqm of commercial and logistics space in Weiterstadt, Hesse. In Dahlewitz near Berlin, Four Parx will begin construction of around 15,000 sqm of commercial and logistics space in line with the "Global" concept in the first quarter of 2019. Planning permission has already been granted.