LWB builds residential complex with integrated daycare center - Free State of Saxony provides funding

In the presence of Saxony's Prime Minister Michael Kretschmer, the foundation stone was laid today in Leipzig for a new housing construction project sponsored by the Free State of Saxony. With this project, the municipal housing and construction company Leipziger Wohnungs- und Baugesellschaft mbH (LWB) has entered into the subsidized new rental housing market. A day care centre for children will be integrated into the new building ensemble.

LWB is building 97 one- to five-room apartments in five buildings on the site in Bernhard-Göring-Straße near the city center. Of these, 61 will be subsidized by the Free State of Saxony in accordance with the guidelines for restricted rental housing. They will be let to holders of a residential entitlement certificate from the city of Leipzig for a basic rent of 6.50 euros per square metre. A day-care centre with 96 places will also be integrated into the quarter. Completion is planned for the turn of the year 2020/2021.

"The creation and maintenance of affordable housing is an important signal for the future in our major cities," said Saxony's Prime Minister Michael Kretschmer at the laying of the foundation stone. "I am therefore pleased that things are really moving forward here in Leipzig, that the LWB is putting its finger on the pulse. The State of Bavaria is specifically promoting the creation of affordable housing in town and country. Kretschmer: "I wish the builders every success in the construction project and the LWB every success as owner and landlord.

Ute Schäfer, LWB Director of Finance and Asset Management, emphasized the responsibility of the LWB in Leipzig: "As a municipal housing company, we are reliable and stable partners for our tenants and for our owner, the City of Leipzig," said Schäfer. The LWB translates housing policy into housing reality. "We are part of the history of our city and part of the future," she said.
The LWB's investments in new apartments tied to rent and occupancy rates would not be possible without support from the Free State, she said. Schäfer: "In order to continue to implement subsidized housing construction, a new edition and adjustment of the subsidy is urgently needed. We also hope that the newly elected city council will strengthen the responsibility of local politicians for the housing industry".

Iris Wolke-Haupt, LWB Director of Housing and Construction, emphasized the importance of the project at the foundation stone ceremony: "This new building marks the entry of Leipzig's largest landlord into subsidized housing construction. At the same time, it stands for the "compatibility of different possible uses and meets the requirements for building in growing cities". In addition to Bernhard-Göring-Straße, the LWB is currently building a total of 256 apartments in Littstraße and Straße des 18. Projects are being prepared in Landsberger Straße with integrated day-care center and in Saalfelder Straße. Most of the new apartments are to be subsidized by the state. Wolke-Haupt: "Housing must remain affordable despite the continuing rise in construction costs. We are meeting this challenge, for example, by further optimizing floor plans and using synergy effects through standardized construction. At the same time, we see ourselves as sharing responsibility with the city and the Free State of Saxony. Without public funding, most Leipzig residents cannot afford a newly built apartment".

The Mayor of Leipzig, Dorothee Dubrau, welcomed the fact that for the first time the LWB is integrating a day care center directly into a new housing development. "In a growing city like Leipzig, it makes sense to combine or stack functions, because this reduces the amount of space needed and shortens distances," said Dubrau. "We must now set the course for our further urban development and include all areas of social life. Public funding is one of the prerequisites for ensuring that housing remains affordable in the future," added Building Mayor Dubrau. "We are therefore also counting on further support from the Free State."