Unibail-Rodamco-Westfield (URW) has announced a significant increase in the projected cost of its Hamburg-Überseequartier project to €2.16 bn from the previous estimate of €1.64 bn.
This upward revision is primarily due to the project's delayed opening from April to October and unforeseen issues such as water ingress, as well as general cost overruns related to changes in the project scope and unexpected expenses.
While these challenges have impacted the project's timeline and budget, URW expects no change to its overall financial performance for 2024. However, the company's debt levels will temporarily rise due to the increased investment. URW is currently exploring options to mitigate these additional costs.
The company remains committed to completing the project, envisioned as a mixed-use development spanning 100,000 m2 and combining retail, entertainment, and residential spaces in Hamburg's HafenCity district. A 10-screen cinema, diverse restaurants, bars, and cafés and state-of-the-art medical and wellness centers will complement the district's appeal.
Westfield Hamburg-Überseequartier will prioritize sustainable mobility with electric vehicle infrastructure, smart shuttles, and advanced traffic management systems. The district's buildings adhere to rigorous environmental standards, achieving BREEAM Excellent and DGNB Gold certifications.
