Reales signs deed for area development site in IJsselcentrale Zwolle, the Netherlands

Following a structured sales process on behalf of ENGIE, Reales has been selected as buyer for the former power station, IJsselcentrale in Zwolle, the Netherlands.

The transaction encompasses the site of the former IJsselcentrale plant in Zwolle where the Nieuw Harculo area development is taking form. The site is owned by energy supplier ENGIE. After the demolition of the power plant, ENGIE, together with the municipality of Zwolle and various stakeholders, developed a vision for the area. The new to be developed district will consist of small-scale neighbourhoods with close social cohesion, where both exclusive and affordable homes, ground-level houses and apartments will be developed. This includes a total of about 500 homes.

As a project developer, Reales operates mainly in the Randstad and specialises in complex inner-city projects with a focus on housing. The area development Nieuw Harculo gives Reales the opportunity to expand its working area to the municipality of Zwolle. Zwolle is a growth municipality with a professional organisation and administration whose ambitions for this area development matches Reales' strategy and vision.

Bas Wilberts, Head of Residential & Hotel Investment at Savills in the Netherlands and consultant in the sales process, says: “After a dedicated and resilient process, which included uncertainties due to environmental policies, especially nitrogen regulations, we managed to successfully establish this transaction. With the development Nieuw Harculo, and its focus on sustainable housing, it does not only address the shortage of housing in the Netherlands, but also contributes to enhancing sustainability in the real estate market. We are therefore delighted to have been able to assist ENGIE in this transaction and look forward to the final result of the Nieuw Harculo area development."

Harry Talen, Director Power Plants ENGIE in the Netherlands: ''The IJssel power plant has provided security of energy supply for many years. The power plant has become an icon for Zwolle and we are grateful for the role it has played in this piece of history. We have now entered a new chapter: we are working towards a future where ENGIE wants to serve its customers with zero C02 emissions. Following the closure and demolition of the power plant, we therefore looked at a new use for the site in close involvement with the people of Zwolle. It is a unique site on the river IJssel, on the border of the city and the floodplains. In 2019, Zwolle city council adopted the spatial vision IJsselcentrale and surroundings, with the choice of a new residential area where there is a lot of potential to strengthen the natural quality of the microlocation. In Reales, we see a party that pays a lot of attention to the green character and quality of the area. It is therefore with great confidence that we look forward to a positive future for New Harculo.''

Marc Snijders, managing director of Reales, adds: "The acquisition of this site is in line with Reales' objectives and also provides the opportunity to further expand our operating area. The realisation of this transaction fulfils the ambitions of the Municipality of Zwolle to add high-quality, affordable but above all sustainable housing at a beautiful location in Zwolle.

The area development New Harculo offers the ultimate opportunity to tell a contemporary story, to create a neighbourhood that is more than an addition of functions, an experience, a continuation of a history and a step towards the future."

 Engie was legally advised by Houthoff legal and notary.