The 48,000 m2 conversion site is part of a former dairy farm, and the seller is FAB Grundbesitz, a group of companies with a strong focus on the real estate markets in central Germany.

Construction is scheduled to begin in April 2024 and be completed in Q2 2025 at a cost of €34 mln.

First, the remaining existing buildings of the dairy plant, which has burned down several times, will be demolished.

Adrian Zellner, member of the Executive Board at Garbe Industrial Real Estate, said: ‘Logistics and commercial space in good locations is in demand and in short supply. With the new property, we are securing an attractive location in the economic region of Eastern Thuringia with excellent transport links directly to Gera.’

The Hamburg-based project developer will build the modern commercial and logistics property according to the environmentally and climate-friendly BEG-40 standard.

Air source pumps will be used instead of fossil fuels for heating, while a photovoltaic system on the entire roof area will generate renewable energy.

In addition, there will be LED lighting, smart meters, a system for the use of domestic hot water and pre-fitting for e-charging stations.

Garbe Industrial Real Estate is aiming for gold certification from the German Sustainable Building Council (DGNB) for the property.

The site is ideally located between the city centre and the A 4 motorway, the A 9 motorway is only 17 km away, while a tram stop provides a quick link to the centre of Gera.

Colliers Leipzig acted as an intermediary in the acquisition of the property.