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The central element of the increase in the value of the Frankfurt bridges is the value development of the bridge properties: this is one of the most stable economic trends over a 100-year period

The bridge buildings are not only built with high-quality materials, but they also increase in value significantly over the years thanks to their artistic and craft design and the three major maintenance cycles of the city of Frankfurt, which is the beneficiary of this affordable and non-profit building portfolio. This is supported by megatrends such as migration to metropolitan areas, the growing popularity of car-free or low-car areas near the city center and the move away from urban sprawl in the urban surroundings. Frankfurt's central geographical location in Germany and Europe also guarantees the city's growing and ongoing importance and attractiveness. Nevertheless, the value development of the bridge building portfolio from 29 billion to 150 billion and of the bridge transport system from 4 to 5 billion 85 years after completion has been conservatively estimated in the interest rate estimate - if one were to project corresponding asset value developments of the last 85 years into the future, a calculation of the final total price volume of the bridges of at least 280 billion would come into consideration.

If one uses a conventional building value calculation for the bridge buildings in a conservative market environment, one arrives at 465 billion euros, in the present calculation, however, only 150 billion was assumed as the final price sum.

Living spaces such as those of the Frankfurter Brücken, which are built in prime locations for 7,000 euros per square meter and have a unique character, achieve up to 25,000 euros per square meter in Frankfurt (as of 2024). This would mean that the Frankfurter Brücken real estate portfolio with its 1,150,000 square meters of space would have a value of around 29 billion euros as of 2024, assuming a price per square meter of around 25,000 euros - whereby the value of the Brücken buildings is largely driven by 3 factors:

a) Artistic or artistic design of the building structure

b) Surrounded not only by greenery, but usually also with gardens, terraces or balconies (the buildings have an average of 2.5 floors and almost all have a garden or an associated outdoor area)

c) Excellent connections to all parts of the city right on your doorstep – without the noise of conventional means of transport

Stiftung Altes Neuland Frankfurt / GNU

If you add the value of the bridge body and infrastructure, which will be sold to the city of Frankfurt for 9.7 billion euros after completion, to the property value of around 29 billion euros, and add the value of the transport system at just 1.3 billion euros, the Frankfurt bridges would have a moderate interest rate of around 5.45% pa if they were sold immediately for 40 billion euros after completion. There is also another problem: if the plan were to sell them as luxury objects immediately after completion, they would never be built in the first plac

A long-term investment is therefore more attractive for investors and for society. Since 100 years is a very long period of time that is difficult to predict, only conservative assumptions have been made in this interest rate estimate.

In cities with limited beautiful inner city districts and spectacular buildings, square meter prices of up to 60,000 euros/sqm and more are the order of the day: Frankfurt is still in the lower range with individual properties at 30,000 euros/sqm

Stiftung Altes Neuland Frankfurt / GNU

In Frankfurt, only penthouse apartments in high-rise buildings and large apartments have achieved top prices so far – but here too the trend is rising in the long term

Over the last 100 years, the value of real estate in Frankfurt's city center has increased approximately ninety-fold (adjusted for inflation), which is primarily due to the city's role as a financial services center and transport hub (Frankfurt Airport). Even if this cannot be assumed as a guideline for the period of the Frankfurt Brücken investment, a five-fold increase in the value of the Brücken building portfolio, as assumed here, is a reliable estimate.

Stiftung Altes Neuland Frankfurt / GNU

A look at today's real estate market shows that Frankfurt's rental market already has prices of 40 to 60 euros/sqm

Due to the city's geographical location and the limited urban area, no reversal of the trend is expected here in the coming decades.

The main risk to the performance of the Frankfurter Brücken Investment is the population development in the coming decades

Even if Frankfurt is unlikely to lose its central importance relative to other German cities, the pressure on the real estate market, despite the influx of people into urban centers and the increasing attractiveness of the city due to Frankfurt's bridges, will not be so great that a dramatic increase in value would be expected in the event of such an important negative megatrend - therefore, only a five-fold increase in the value of the bridge building portfolio is assumed, which results from increased prosperity and not from population growth.

However, the spectacular real estate portfolio of Frankfurter Brücken is expected to experience positive value development over the next few decades.

Stiftung Altes Neuland Frankfurt / GNU
Stiftung Altes Neuland Frankfurt / GNU
Stiftung Altes Neuland Frankfurt / GNU
Stiftung Altes Neuland Frankfurt / GNU

The value development of the transport system is even more resistant to fluctuations in megatrends: in particular, the unique items on the bridges such as flower cars and hand-made vintage cars increase in value due to their museum character.

The example of the Wuppertal suspension railway shows that once spectacular transport systems have been established, they become an indispensable jewel of a city: regardless of economic or demographic megatrends, it will always remain a centerpiece of Wuppertal culture and a magnet for tourists. This is also to be expected for the transport system of the Frankfurt bridges.

Majonit 2 - shutterstock.com
Stiftung Altes Neuland Frankfurt / GNU
Majonit - shutterstock.com.
Stiftung Altes Neuland Frankfurt / GNU

The financing model of the Frankfurter Brücken combines return-oriented investment with charitable goals, similar to ESG investments

The financing of the Frankfurt bridges relies on the combination of a private, very effective ownership structure in the form of the Brücken GmbH&CoKG fund and the non-profit implementation and use of the project over the very long period of 100 years.

Since the Frankfurt bridges are not only designed as a blueprint for humane, sustainable neighborhoods around the world, but also as a showcase for innovation and a research center in Europe for the urban planning of the future, they have a great, ongoing funding benefit for the city of Frankfurt, the state of Hesse, Germany and the European Union. This funding eligibility is the basis for guaranteed basic returns over decades, which makes the investment a low-risk capital investment.

At the same time, it has significant potential for price gains, as the Frankfurter Brücken are planned as a district with the character of a UNESCO World Heritage Site, which will inevitably increase their value over the decades. Through the possible extension of the Frankfurter Brücken to the suburbs, a potential denser development on the outer arms, the licensing of their planning content for similar construction projects, the Brücken GmbH&CoKG fund also has high potential for profit and value appreciation.