EWMG invests in difficult times

In 2023, the development company of the city of Mönchengladbach (EWMG) invested almost twice as much as in the previous year, setting an example in what continue to be difficult times. Together with the administration, its aim is to drive forward impulse projects in Mönchengladbach and create new living space.

In 2023, EWMG invested around € 12.1 million in the construction of daycare centers, the new reception building at Hbf. Rheydt, the development of commercial space and new residential areas. In addition, land was purchased for strategic uses, for example in disaster control or with regard to urban developments such as Europaplatz. “We are thus setting important priorities in the city and paving the way for future revenues,” explains Dr. Ulrich Schückhaus, Chairman of the EWMG Management Board, with a view to the preliminary figures for 2023. According to these figures, sales revenue of € 11.4 million was significantly below the previous year’s level (2022: € 15.0 million). The rental and leasing business remained constant compared to the previous year at a forecast € 4.7 million (2022: € 4.7 million). “The crisis in the real estate sector is leading to a slump in profitability at EWMG,” says Schückhaus. “We were unable to achieve the planned sales proceeds in full, and the transaction volume of purchases and sales also fell by almost € 3 million compared to the previous year. Due to the high costs and uncertainties in the construction industry, investors are putting their projects on hold; private house builders are withdrawing their bids.” For 2023, Schückhaus therefore expects a clearly negative operating result of around € -2.5 million and an annual deficit of € -2.4 million The significantly lower NEW dividend compared to previous years will no longer be able to offset the negative operating result. The annual deficit will be offset against the retained earnings from previous years. EWMG expects positive figures again for 2024.

More living space

Creating living space is more important than ever, as the crisis on the real estate market is also having an impact in Mönchengladbach. Large residential construction projects are at a standstill, but smaller construction projects by commercial and private investors are making progress.  An apartment building with nine residential units is being built on Karmannsstrasse, while 71 apartments are going on the market in the “Petit Jardin” residential area on Regentenstrasse. The residential developments including publicly subsidized housing on Waldhausener Strasse and in the Croonsquartier are also picking up speed. EWMG plans to market the first plots on the Maria Hilf terasses from 2025. “This is good news and an important sign for Mönchengladbach in difficult times. We need all players, municipal as well as private and commercial investors, to create the necessary living space for all needs in the city,” emphasizes Janann Safi, Chairman of the Supervisory Board of EWMG.

Private clients came into their own in Giesenkirchen last year. In the development area on Kruchenstrasse, EWMG marketed plots for single-family and multi-family homes with a total of around 30 residential units. In Mönchengladbach-Venn, around 100 new residential units are also being built in the new Flipsenpesch district. The application phase for the first 29 plots ended on May 5. In addition, 14 single-family and semi-detached house plots will go on the market in Lot 1 of the REME site from fall 2024. The tender for the adjacent construction site for detached apartment buildings with underground parking will run until June 28, 2024.

Proactive real estate management

In order to be prepared for future developments, EWMG has been conducting strategic real estate management for the city of Mönchengladbach for years. It makes targeted purchases of real estate, brownfield sites and areas, which are then further developed in line with the city-wide strategy. A current example is Europaplatz 9-11, where the city exercised its right of first refusal at the end of 2023 to gain access to the building directly next to Mönchengladbach’s main train station. Mönchengladbach main station. “Well thought-out space management plays a key role in steering development in the city in a targeted manner in order to reconcile economic, social and ecological goals,” says Technical Councillor and EWMG Managing Director Claudia Schwan-Schmitz. She sees the purchase in the context of the overall development in the city center. “Together with the modern, efficient central bus station, the still planned 19 buildings project and the plans on Hindenburgstrasse to connect the shopping mile with the historic Abteiberg, there is an opportunity to provide important urban development impetus and thus carry out urban renewal.” The plans for Hindenburgstrasse are taking shape. Demolition is scheduled for fall 2024, with construction set to start in mid-2025. “We have to do everything we can to make the city center attractive in the long term. It must become a central location for shopping, services, culture, gastronomy and living,” adds Schückhaus.

According to Schwan-Schmitz, another example of successful space management and the excellent cooperation between EWMG and the city administration are the purchases made on Dahlener Strasse in recent years. Here, the dilapidated and now empty buildings are to be demolished to make way for the construction of apartment buildings with around 70 residential units. “We are thus creating additional urgently needed living space and optimizing the street space at the same time,” says the Technical Councillor happily. “It also shows that strategic land management pays off,” adds Schückhaus. “Today’s purchases are tomorrow’s sales. They attract new investments and investors.”

Progress in building construction

EWMG is investing in the main station in Rheydt itself. In April 2023, it celebrated the topping-out ceremony with all those involved in the new station building. The building is now nearing completion. The opening is planned for after the summer vacation. “It’s great to see that we can continue the development at Hbf. Rheydt after many years of negotiations, discussions and preparatory work,” says Schückhaus. “We are sending out a visible signal for the Rheydt district and therefore for the city as a whole.” Unique workplaces are also being created here – modern, bright offices and retail space, a green inner courtyard, retail on the doorstep and perfect public transport connections.

EWMG is also the client for two daycare centers in timber-frame construction. The daycare center on Holter Heide has already been handed over to the operator Rappelkiste. The handover of the second daycare center on Carl-Diem-Straße to MUMM is planned for Q2/2024. EWMG has thus created a total of 140 childcare places. The natural building material wood ensures a good indoor climate and sustainable construction. An investment in the future.