Battle over two Hamburg properties shifts to next stage, as federal court steps in
Ongoing battle over two pieces of land in Hamburg continues - Escalating land feud in Hamburg progresses to another stage
Here's the lowdown:
The city of Hamburg has been embroiled in a heated spat with a couple of businesses over their respective properties, the latest chapter unfolding now with the involvement of the Federal Administrative Court (BVerwG).
So, here's what went down back in May 2021. These companies sold their blasted properties to freshly minted companies, all owned by the same ol' shareholder as the original sellers. Now, this is where it gets juicy—the city swooped in and exercised its right of first refusal, often used to facilitate urban planning visions. However, in another instance, the company in question waved goodbye to this right by submitting a waiver declaration, accepting certain conditions.
Both companies fought back, managing to snag victories in both the Administrative Court and the Higher Administrative Court, claiming the city's purchase wasn't a contract with a third party, but merely an asset swap among the same ol' crowd. Guess what? They were right! The city needed a contract with an outsider to exercise its pre-emption right.
But the city ain't giving up that easy. They've taken their complaints to the BVerwG, which has since flipped the script on the situation. Guess what they said? They're considering those sales as contracts with third parties, even if the buyer and seller were one-man shows with the same dang sole shareholder. The companies chose this approach themselves, so it's their own darn fault!
However, the BVerwG couldn't make a call on these cases because, like a broken record, they were missing some darn findings. The Higher Administrative Court in Leipzig is now tasked with determining whether the city exercised its pre-emption rights lawfully in other aspects.
HamburgPropertyBVerwGLeipzigHanseatic cityAltonaSeller
The Nitty-Gritty
Let's talk context. The latest goings-on in this battle over municipal pre-emption rights in Hamburg are wrapped up in legislative changes and judicial considerations related to neighborhood protection zones. The federal government coalition agreement for mid-2025 proposes changes regarding municipal pre-emption rights in share deals within these zones and an intent to refine or possibly strengthen municipal control over property transactions to protect local interests.
Moreover, a two-phase revision of the Federal Building Code is on the horizon, aiming to speed up residential construction—which could have some impact on the municipal control over property transactions and development rights.
In other news, specific rulings of the BVerwG or the Higher Administrative Court in Leipzig haven't been dished out yet, suggesting that the primary action here is legislative rather than judicial. In other words, keep an eye on those changing laws!
In the unfolding dispute over two properties in the Hanseatic city of Hamburg, the Federal Administrative Court (BVerwG) is set to play a crucial role, as it examines whether the sales of these properties, even if between related entities, can be considered contracts with third parties. The final rulings on these cases are anticipated as legislative changes are proposed concerning municipal pre-emption rights in share deals, which could significantly impact the molding of neighborhood protection zones and local property transactions in Hamburg, including the area of Altona.
