ESPG secures €18M+ to build science park in southern Germany
What's the deal? European Science Park Group (ESPG AG), a German science park real estate specialist, has secured over €18M in funding for its LabCity Neu-Ulm development. The financing comprises a €15.5M loan from regional bank Volksbank Ulm-Biberach and €2.5M in subordinated debt.
Why now? Germany is placing growing emphasis on science parks as drivers of research and innovation. ESPG said the funding supports its broader growth strategy and strengthens its ability to expand its science park portfolio.
Dr Ralf Nöcker, an ESPG board member, highlighted the new banking partnership as a key milestone. Meanwhile, Markus Drews is transitioning from the management board to the supervisory board, signalling a leadership reshuffle even as the company scales up.
What could go wrong? Germany's commercial real estate market has faced headwinds in recent years, with rising interest rates and softening demand weighing on developers. Specialised science park assets may prove more resilient than traditional office space, but the niche market also carries concentration risk.
The signal: The deal reflects a broader European trend of channelling capital into research-oriented real estate — purpose-built labs, biotech campuses, and science parks — as governments and investors bet on the knowledge economy. Regional banks stepping in as lead lenders suggests institutional confidence in the asset class, even as bigger players remain cautious about German property.
Read more: webdisclosure.com
