Luther Advises on Sale of Former Hertie Department Store in Neustadt to Municipality

Luther Rechtsanwaltsgesellschaft advised EKZ Neustadt Weinstraße KG, a company of the Devello Group, in the sale of the former Hertie department store to the town of Neustadt an der Weinstraße. Vanja Alexander Kovacev of BBL Brockdorff acted as the provisional insolvency administrator in the proceedings. The sale of EKZ Neustadt Weinstraße KG following its insolvency is intended to kick‑start the revitalisation of Neustadt's city centre. Against the backdrop of persistent challenges in the retail sector and a rising number of vacant department stores across Germany, the transaction provides a sustainable solution for the site and a positive signal beyond the locality. Under the leadership of provisional insolvency administrator Vanja Alexander Kovacev, Luther’s real estate restructuring team developed an economically viable transaction structure in close consultation with the town as investor and the mortgagee. The parties made use of Luther’s combined expertise in insolvency law, real estate law, tax law and public law to reach the sale. The town intends to demolish the existing building and pursue a long‑term redevelopment of the area. As an interim measure, a car park will be available on the site for five years from the end of 2026. Mayor Weigel has also announced an ideas competition to enable citizens to participate in shaping the future design. Luther represented EKZ Neustadt Weinstraße KG with a team composed by: Oliver Köhler (Partner, lead, Restructuring & Insolvency), Paul Mey (Associate, Restructuring & Insolvency), Matthias Wagner (Partner, Real Estate Law), Professor Johannes Beermann (Public Law), Ulrich Siegemund (Tax Law). BBL Brockdorff acted as provisional insolvency administrator for EKZ Neustadt Weinstraße KG with a team composed by: Vanja Alexander Kovacev (Provisional insolvency administrator).

Luther Advises on Sale of Former Hertie Department Store in Neustadt to Municipality

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