Germany’s ECE, Art-Invest enter UK market with £190m London resi project

The JV aims to develop 88 luxury apartments, 3,251 sqm of commercial space and 15 affordable housing units on Cleveland Street, in London W1
© ECE

Two German property groups, ECE and Art-Invest, have formed a joint venture to develop a £190m residential project in the heart of London, each entering the UK market for the first time.

The JV aims to develop 88 luxury apartments, 35,000 sqft (3,251 sqm) of commercial space and 15 affordable housing units on a 0.4 ha (one acre) site on Cleveland Street in London W1. Its co-development partner is Dukelease. Completion of the project is scheduled for 2021.

The project marks the first investment of ECE in the UK and the firm is considering exploring new opportunities in the market, particularly in the residential sector. 

Controlled by Hamburg’s Otto family, ECE is a leading shopping centre development and management while Art-Invest has to date specialised in income-generating commercial real estate in Germany. ECE has 195 centres under management with a market value of €33bn at present. It company also develops large-scale real estate projects in office and industrial, logistics centres, hotels, residential properties, and city districts.

“We are very positive about the long-term prospects for UK real estate,” said ECE’s Chief Investment Officer Henrie W. Koetter in a statement released almost simultaneously with the change of government in Britain under incoming Prime Minister Boris Johnson, strongly committed to exiting the European Union by the end of October.

“The project in collaboration with Art-Invest Real Estate, one of the most respected investor developers in Europe, was a unique opportunity to enter this sector for the first time,”Koetter said.

Art-Invest Real Estate UK’s Managing Partner Ali Abbas said ECE is a natural partner for the Cologne-based firm’s first UK development. “Its approach to real estate and its commitment to excellence is completely aligned with our strategic values,” he said. “Our partnership with ECE on this development is underpinned by our local expertise and capability to originate, execute and deliver and we are delighted to be working with them on this exciting project.”

Art-Invest recently announced the opening of a London office to strengthen local presence and to pursue a targeted early-stage investment strategy.