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Modernization of the MärkischesViertel in Berlin INTEGRATED DEVELOPMENT CONCEPT FOR A 1960s ERA LARGE RESIDENTIAL DEVELOPMENT

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1 Modernization of the Märkisches Quarter in Berlin INTEGRATED DEVELOPMENT CONCEPT FOR A 1960s LARGE RESIDENTIAL DEVELOPMENT Modernization of the MärkischesViertel in Berlin INTEGRATED DEVELOPMENT CONCEPT FOR A 1960s ERA LARGE RESIDENTIAL DEVELOPMENT

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3 Table of contents Content Introduction Introduction Energy situation in the Märkisches Viertel Energy conservation situation in the Märkisches Viertel Housing management conditions and solutions Housing management conditions and solutions District development in the Märkisches Viertel District development in the Märkisches Viertel Public participation in the development of Märkisches Quarter Financing the modernization project Financing the modernization project Execution of the modernization Contact Contact ... 66

4 02/03 Preliminary remark Preface Energy-efficient renovation of large housing estates At the beginning of 2009, the Federal Ministry of Transport, Building and Urban Development launched the energetic renovation of large housing estates competition based on integrated urban development concepts. The aim of the competition was to show development opportunities for large housing estates. The aim was to develop and implement comprehensive, integrated concepts under energetic, housing, urban and demographic aspects. Particular attention should be paid to reducing the consumption of fossil fuels for heat supply, in particular by improving energy efficiency. GESOBAU took part in the competition with the modernization concept for the Märkisches Viertel in Berlin. The concept presented by GESOBAU for the Märkisches Viertel in Berlin was awarded gold. It convinced the jury with conclusive solutions in all important competition criteria, as it documents how climate protection and sustainable district development can be carried out efficiently and innovatively in a large housing estate with a wide range of housing challenges. The following documentation is a summary of the submitted competition documents. At the beginning of 2009, the Federal Ministry for Transport, Building and Urban Affairs announced the competition Energy-conserving Refurbishment of Large Residential Developments based on Integrated Urban Development Concepts. The aim of the competition was to exhibit the development potential of large residential developments. The objective was to develop and implement comprehensive, integrated concepts, including energy, housing, urban development and demographic aspects. Particular emphasis was given to reduction in the use of fossil fuels for heating, in particular through improved energy efficiency. GESOBAU entered the competition with the modernization concept for Berlin's Märkisches Viertel. The concept GESOBAU submitted for the Märkisches Viertel in Berlin was awarded the Gold prize. The persuasive solutions proposed convinced the jury in all the important competitive criteria; since it documented how a large residential development with a wide range of housing challenges could efficiently and innovatively pursue climate protection and a development concept for the neighborhood sustainable for the future. The following documentation is a summary of the competition entry submitted.

5 Plan designation: Sheet designation: Scale: 1: 7500 Plan no .: MVG_1001 Date: Index: _ Responsible: Muminagic Modernization of the Märkisches Quarter in Berlin Introduction Modernization of the Märkisches Viertel in Berlin Introduction Introduction Introduction When in August 1964 the first tenants When tenants moved into their apartments in the Märkisches Viertel, they were part of an exciting urban development experiment. On the northern edge of (West) Berlin, the walled city wanted to show what the modern, comfortable large housing estate of the future should look like. Numerous architects, including greats such as Werner Düttmann and Oswald Mathias Ungers, designed a quarter with good apartments, which should become a new home for around 1,000,000 people. When in August 1964, the first tenants occupied their apartments in the Märkisches Viertel; they were part of an exciting urban planning experiment. On the northern edge of (West) Berlin, the walled city wanted to show how the modern, comfortable large residential development of the future would look. Numerous architects, including greats like Werner Düttmann and Oswald Mathias Ungers, designed a quarter with some 17,000 apartments that was to become the new home for some 40,000 people created NS GESOBAU AG Wilhelmsruher Damm Berlin Tel Fax: OVERALL OVERVIEW PLAN OF LIVING HOUSE GROUPS GESOBAU AG Plan of residential house groups in the Märkisches Viertel Plan apartment blocks in the Märkisches Viertel

6 04/03 Urbanity through density was the guideline: Instead of the loosened row development of the 1950s, the planners aimed for an urban structure with almost sculpturally arranged high-rise formations, which at the same time should offer a high quality of stay with lots of green spaces. Modern bathrooms and kitchens, loggias, district heating and lift systems ensured a level of living comfort that was anything but natural for the residents, who often moved from unrenovated Wilhelminian style houses. Forty years after it was built, the Märkisches Viertel is facing new challenges. The residential buildings are structurally outdated and in particular do not meet today's requirements for energy efficiency in any way. In addition, the social changes, in particular the aging of society and the growing social heterogeneity of the population, require adequate answers. GESOBAU, which owns more than residential units in the Märkisches Viertel and therefore bears decisive responsibility for the development of the entire district, has decided on a comprehensive modernization. The first construction phase, the modernization of the residential building groups 908 and 913 built by Oswald Mathias Ungers with a total of 538 apartments, was completed in 2008. The experience gained will be incorporated into further measures, which will be carried out successively until 2015 and will cost a total of around 440 million euros. The only exceptions to the modernization are the houses that have been converted into condominiums in recent years and that are already of a contemporary standard. GESOBAU uses energetic modernization as a means to create a quarter that is future-proof in every respect: This should Urbanity through density was the motto: instead of the loose, row house construction of the Fifties, the planners aimed for an urban structure with sculptured high-rise formations that nonetheless were to offer a high quality of life with lots of green space. Modern baths and kitchens, recessed balconies, district heating and lifts supplied a level of residential comfort that was by no means obvious for those residents often coming from unrefurbished houses built at the end of the previous century. Forty years after it was erected, Märkisches Viertel is presented with new challenges. The apartment buildings have aged and hence in no way comply with today's energy efficiency standards. Moreover, the changes in society, especially aging in society and growing social heterogeneity among the population, demand adequate responses. GESOBAU, as the owner of 15,000 residential units in the Märkisches Viertel and thus bearing decisive responsibility for the development of the entire district, decided upon a comprehensive modernization program. One first construction stage, the modernization of the apartment blocks 908 and 913, a total of 538 apartments, erected by Oswald Mathias Ungers was already completed in The experience gained here contributes to the additional measures to be implemented successively until 2015 at a cost of some EUR 440 million. Only the buildings converted into condominium over the past years have been omitted since they already reflect a contemporary standard. GESOBAU aims to create a residential quarter with future potential through modernizing the energyconservation capacity: These measures are intended to satisfy high ecological demands and offer pleasant living space for people of different origins and living conditions; proving that large residential developments are viable in future too. The point here is not to create a lighthouse project implementing every conceivable technology

7 Modernization of the Märkisches Viertel in Berlin Introduction Modernization of the Märkisches Viertel in Berlin Introduction to meet high ecological requirements, offer people of different origins and different living conditions pleasant living space and thus prove that large estates will also be viable in the future. The aim is not a lighthouse project with the implementation of all conceivable technical measures that would not be feasible without a high level of funding, but a realistic, economically feasible solution. The premise here is always to find the balance between social, ecological and economic requirements. The modernization of the Märkisches Viertel shows that large estates are not only indispensable for the provision of housing, but also offer attractive economic, social and ecological opportunities with professional management, an active urban development policy, an integrated approach to urban development and a sustainable focus. With the development of large housing estates, the answers to the questions of demographic and social change as well as climate protection can also be given. of the type impossible without subsidies, but to produce a realistic, economically optimal solution. Here the premise is always to find a balance between social policy, ecological and economic requirements. The modernization of the Märkisches Viertel shows: large residential developments are not only essential for providing living space but, also that with professional management they offer attractive economic, social and ecological opportunities with an active urban development policy, integrated urban planning approach and a sustainability orientation . The development of large residential complexes also provides answers to the questions arising from demographic and social change as well as from climate protection.

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9 Modernization of the Märkisches Viertel in Berlin Energy situation in the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel Energy conservation situation in the Märkisches Viertel

10 08/09 Energy situation in the Märkisches Viertel Initial situation As in many post-war settlements, the energetic balance of the apartments in the Märkisches Viertel is poor: The supply of a 60 m 2 apartment with heat and hot water currently causes an annual emission of 4.4 tons of CO2. All apartments in the Märkisches Viertel together generate around tons of CO2 per year. The primary energy consumption in the Märkisches Viertel in the non-modernized apartments (2007) amounts to an average of 191 kwh per m 2 per year for heating and 35 kwh per m 2 per year for hot water. This exceeds the average of the state-owned Berlin apartments by around two thirds. Based on the billing data for 2007, the final energy consumption reached the following values: Total heating hot water 147 kwh per m 2 and year 27 kwh per m 2 and year 174 kwh per m 2 and year The burden on the tenants of the operating costs is correspondingly high. These amount to an average of 1.55 euros per m 2 per month for heating and hot water. This puts them around 80 percent above the average for rental apartments in Berlin, the owners of which are part of the Berlin-Brandenburg Housing Association (BBU). The reason for the high energy consumption in the Märkisches Viertel is that energy efficiency hardly played a role in the construction of the houses in accordance with the priorities and technical possibilities of the time. The outer walls of the residential buildings are mainly due to the sandwich Energy conservation situation in the Märkisches Viertel Point of departure As in many post-war housing developments, the energy balance of apartments in Märkisches Viertel is poor. Supplying a 60-m 2 apartment with heat and hot water currently causes an annual discharge of 4.4 tons of CO2. All the apartments together in Märkisches Viertel bring that amount to some 43,000 tons of CO2 annually. The primary energy consumption in Märkisches Viertel totals 191 kwh per m 2 annually for heating and 35 kwh per m 2 annually for hot water in the apartments that have not been modernized (2007). That exceeds the average for state-owned Berlin apartments by some two-thirds. The final energy consumption based on the 2007 billing data was as follows: Heating Hot water Total 147 kwh per m 2 annually 27 kwh per m 2 annually 174 kwh per m 2 annually Hence the operating costs to the tenants are correspondingly high. These are on average EUR 1.55 per m 2 monthly for heat and hot water. Thus they are some 805 higher than the average for 664,000 Berlin rental apartments, whose owners are organized in the Verband Berlin-Brandenburgischer Wohnungsunternehmen (BBU). The reason for the high energy consumption lies in the fact that energy efficiency played almost no role in construction at that time. The external walls of the apartment buildings (building shell) are composed mainly of concrete sandwich panels with little insulation (35 to 40 mm) with K values ​​averaging between 0.7 and 0.9 W / m 2 K. The thin walls and drafty joints result in a high air exchange rate and hence a high degree of heat loss. This also applies to the largely uninsulated

11 Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel Slabs made of concrete with little insulation (35 to 40 mm) and have average U-values ​​of 0.7 to 0.9 W / m 2 K. The thin walls and airy joints cause a high rate of air exchange and the associated high heat loss. This also applies to the mostly uninsulated flat roofs with a U-value of 0.6 to 0.8 W / m 2 K. The existing windows (U-value: on average 2.7 W / m 2 K) are double-glazed, however not designed as double glazing; the frames are usually made of wood, in exceptional cases of metal. According to today's requirements, they not only have very poor insulation values, but also offer only poor sound insulation. From an energetic point of view, it is particularly problematic that the district heating-based heating is implemented using a one-pipe system (system according to Rietschel / Henneberg). Due to the nature of the system, this leads to a high expenditure of energy, because the uninsulated pipe system must continuously carry heat during the heating period. In addition, it does not allow individual regulation and billing. The result is that in many cases the residents regulate the room temperature by opening the window. The district heating transfer stations in the buildings also do not meet today's standards. ENERGETIC MEASURES ON THE BUILDINGS The aim of the modernization measures is the highest possible energy efficiency in the buildings, always under the premise outlined above that not all technical possibilities are exhausted, but rather a balance between social, economic and ecological requirements. This leads to the overall objective of an almost warm rent-neutral conception of the overall measure. GESOBAU is aware of the need to pursue climate protection in the long term and is therefore pursuing the goal of meeting the new building standard of energy flat roofs with a K value between 0.6 and 0.8 W / m 2 K. The building windows (U value: on average 2.7 W / m 2 K) are double-glazed but not with insulation glazing. The window frames are usually wood and with some exceptions metal. Not only do they supply very poor insulation by today's standards but they also offer only minimal noise protection. The most critical problem from the standpoint of energy conservation is the single-pipe district heating system (system by Rietschel / Henneberg). This results in systemically induced high energy use since the uninsulated pipe system has to feed heat through the uninsulated pipe during the entire heating period. Moreover, it is impossible to control of bill individually. As a result, the residents often have to adjust the room temperature by opening windows. Moreover, the district heating interface stations in the buildings do not conform to today's standards. ENERGY CONSERVATION MEASURES FOR THE BUILDINGS The aim of the modernization measures is to attain the maximum possible energy efficiency in the buildings in light of the economic and social impact on the residents. The point is not to exhaust all technical possibilities but to find a balance between social, economic and ecological requirements. That means that the primary objective is conceived as an overall measure the impact of which is neutral with respect to the total rent including heat. GESOBAU is aware of the necessity to maintain long-term climate protection and therefore aims for a standard 30 percent lower than that of the new construction standard of the Energy Conservation Ordinance (EnEV) In addition the aim is to give the residents the highest possible cost certainty given the expected hikes in the cost of energy. Insulation In the course of the modernization of Märkisches Viertel, the façades have been insulated using a

12 10/11 savings ordinance (EnEV) 2007 by at least 30 percent. Furthermore, a maximum of cost security is to be created for the residents in view of the expected increases in energy prices.Insulation In the course of the modernization of the Märkisches Viertel, the facades are insulated with a thermal insulation composite system. Depending on the fire protection regulations, polystyrene hard foam insulation or mineral fiber insulation, each with thermal conductivity group 035, is used. Depending on the insulation already in place and the energy standard aimed at, it is 80 to 140 mm thick. The bottom and top floor ceilings are also insulated. Replacing the windows The standard for new windows is represented by double-glazed insulating glass plastic windows with a U-value of at least 1.4 W / m 2 K and a sound insulation value of at least 37 db (classification B4 9A 3). Sound-insulated air outlet elements with two-stage automatic volume flow limitation in one sash per window ensure independent ventilation. The use of triple-glazed windows is usually not used, as the additional financial expense would not be in an economic relationship to the additional energy savings. An exception is the residential building group 907, where the new building standard of the EnEV 2007 is to be undercut by 50 percent. In addition, triple glazing is installed in individual cases for noise protection reasons. New heating system The central component of the energy concept is the renewal of the entire heating system. In the course of the pipe renovation, the outdated one-pipe system will be replaced by an energy-efficient two-pipe heating system based on a heating composite insulation system. Either a polystyrene hard foam insulation or mineral fiber insulation have been used depending on the applicable fire safety regulations each from the heat conductivity class 035. The thickness ranges from 80 to 140 mm, depending on the insulation already existing and the desired energy standard. The uppermost and lowest storey ceilings have also been insulated. Window replacement All the windows that had not yet been upgraded have been replaced by double-glazed insulated, plastic frame windows with a K-value of at least 1.4 W / m 2 K and minimum sound insulation of 37 db (B4 9A 3 class) . Acoustically insulated ventilation elements with two-stage automatic flow restrictions have been installed in one wing per window to provide automatic ventilation. As a rule, no triple glazing has been used since the additional expense is disproportionate to the energy savings attainable. The exception is for the apartment block 907. In this case the energy use is supposed to be 50% less than that prescribed by the 2007 EnEV new construction standard. Moreover, in some case triple glazing has been used for noise protection. New heating system The central component of the energy concept is refurbishment of the entire heating plant. In the course of replacing the lines, the obsolete single pipe system has been replaced by an energyefficient two-pipe plant, set for heating temperatures from 70 to 55 C (instead of the 90 to 70 C range prior to modernization). The heating and hot water system have been equipped with automatically controlled fixtures and hydraulically balanced. The lines and distribution system have been insulated in accordance with the EnEV. All the apartments are equipped with small heating units to supplant the oversized radiators which were part of the less efficient single-pipe system.

13 Modernization of the Märkisches Viertel in Berlin Energetic situation in the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel temperature of 70 to 55 C (instead of 90 to 70 C as before the modernization). The heating and hot water systems are equipped with automatically regulating fittings and hydraulically balanced. The risers and distribution systems are insulated in accordance with EnEV, and all apartments have smaller radiators that replace the previous radiators, which were oversized due to the low efficiency of the one-pipe system. In order to take the changed requirements into account, the district heating house connection stations with central hot water preparation are also being renewed. Further savings potential result from the use of efficient pumps and the reduction of the circulation volumes. Individual consumption billing With the modernization measures, all tenants receive incentives to save energy and thus costs through environmentally friendly consumption behavior. Heat cost allocators with radio-controlled reading record the consumption of heating, hot and cold water. A related technical monitoring enables efficient system control and creates the prerequisite for sensitizing tenants who, for example, have found an above-average consumption to be more economical. In addition, a pilot project is planned with the energy supplier Vattenfall, which is expected to start in 2010 and equip up to apartments in the Märkisches Viertel with intelligent electricity meters. This is the largest smart metering project in German residential construction. The use of these modern technologies enables tenants to obtain a precise overview of their consumption behavior and gives electricity producers the opportunity to optimize their network load. The project is supplied by the supplier with its own tariffs for the tenants in the Märkisches Viertel In order to take the changed requirements into account, the district heating connections have been modernized by addition of central water heaters. Further savings potential results from use of more efficient pumps and reduced circulation volumes. Individual consumption billing Along with the modernization, all tenants are given incentives to reduce energy costs through environmentally friendly consumption habits. Heat cost allocation with radio-controlled metering will record the use of heating, hot and cold water in future. The resulting monitoring technology enables efficient plant control and creates the prerequisites for sensitizing the tenants who consume above-average amounts of energy toward more conscious conservation. Beyond that a pilot project with the energy utility Vattenfall is planned that is expected to start in 2010 and will involve equipping up to 10,000 apartments in Märkisches Viertel with intelligent electricity meters. This is the largest smart metering project in the German housing market. Application of this modern technology allows the tenants to obtain an exact overview of their consumption and offers the opportunity for the electricity generator to optimize its grid capacity. The project will be equipped by the utility with dedicated rates for tenants in Märkisches Viertel to offer an incentive for electricity consumption governed by time and capacity. The project is to be accompanied by a social scientific study to monitor the results. Refurbishment of ventilation equipment Ventilation in kitchens and baths will be discontinued where there is a window. The ventilation in kitchens and baths without windows will be modernized in accordance with E DIN (Interior ventilation engineering ventilation of living space).

14 12/13 that will provide an incentive for time and load-dependent electricity consumption. The project is flanked by a social science study. Renewal of the ventilation system The ventilation in kitchens and bathrooms that have windows will be shut down. The ventilation in kitchens and bathrooms without windows will be renewed in compliance with the E DIN (ventilation of apartments). HEAT GENERATION MEASURES Initial situation The primary energy supply for the heat and hot water supply in the Märkisches Viertel is provided by district heating. This is supplied by a district heating plant based on natural gas that was built in the 1960s and is operated by Fernheizwerk Märkisches Viertel GmbH (FMV), a subsidiary of Vattenfall Europe. In close cooperation, FMV and GESOBAU are now jointly improving the heat supply of the Märkisches Viertel in the long term through structural and technical optimization. New heating plant based on biomass Since the capacities of the heating plant operated by the Vattenfall subsidiary FMV would be oversized after the modernization of the buildings in the Märkisches Viertel, this will be replaced by a district heating plant based on biomass and use of combined heat and power by 2011. The share of renewable energy sources is 50 percent. The regenerative fuel of the new plant consists 100 percent of natural, unpolluted wood chips, which are obtained from residual forest wood and wood from short rotation plantations (i.e. plantations with fast-growing trees). In addition to this, the FMV is checking the addition of straw pellets from surrounding Brandenburg farms. The already shredded or pelletized biomass is delivered to the plan- MEASURES FOR HEAT GENERATION Point of departure The primary energy source for heat and hot water supply in Märkisches Viertel is district heating. The energy is supplied by a natural gas fed districtheating plant erected in the 1960s, operated by Fernheitzwerk Märkisches Viertel GmbH (FMV), a subsidiary of Vattenfall Europe. Together FMV and GESOBAU cooperate closely to improve sustainably the heat supply to Märkisches Viertel by means of construction and engineering optimization. New heat generation plant fueled by biomass Since after modernization of the buildings in Märkisches Viertel, capacity of the heating plant operated by the Vattenfall subsidiary FMV will be excessive, this will be replaced with a district heating plant fueled by biomass and use of powerheat coupling by The share of renewable fuels is thus 50 percent. Regenerable fuel for the new plant is comprised entirely of natural, untreated woodchips from forests as well as wood from short rotation forestry (plantations with fast-growing trees). In addition FMV is testing the firing of straw pellets from Brandenburg farms in the vicinity. The delivery of biomass already shredded or pelleted is scheduled for weekdays with a maximum of 10 vehicles daily. Thus heavy traffic is not to be expected. The planned plant output is approximately 30 MW, appropriate to the reduced heat demand for Märkisches Viertel. In addition, the biomass power plant feeds approximately 5 MW output into the local power grid in accordance with the criteria of the Renewable Energy Preference Act. This supplies some 10,000 households with natural-source electricity. As a result the combination of construction measures performed in the apartment buildings by GESOBAU with the conversion of energy supply by the FMV, the heat energy balance for Märkisches Viertel will be CO2-neutral in future.

15 Modernization of the Märkisches Viertel in Berlin Energetic situation in the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel gen according to only working days with a maximum of ten vehicles a day; a strong additional traffic load is therefore not to be expected. The power plant's output is around 30 MW, which takes into account the reduced heat requirement of the Märkisches Viertel. In addition, the biomass cogeneration plant feeds electricity with an output of around 5 MW into the local supply network in accordance with the criteria of the German Renewable Energy Sources Act (EEG). This means that around households can be supplied with green electricity. As a result, the connection of the structural measures on the residential buildings by GESOBAU with the conversion of the energy supply by FMV will mean that the thermal energy balance of the Märkisches Viertel will be CO2-neutral in the future. A further use of solar thermal energy is deliberately not aimed for in the energetic modernization of the Märkisches Viertel, as the future biomass heating plant already guarantees CO2-neutral heat production. The installation of photovoltaic systems is also dispensed with, since the goal of maximum energy efficiency can be achieved more effectively and cost-effectively with the other measures described, while taking economic efficiency into account. Heat recovery was examined as part of the preliminary planning and recognized as not economically feasible in terms of the overarching goal of achieving largely neutral rent for warm rent with the modernization. This prioritization is based on the aforementioned principle of achieving the best possible energy efficiency with economical means and not realizing a project with all technically feasible and desirable individual measures. A conscious decision was made not to pursue use of solar thermics in the energy-conservation modernization of Märkisches Viertel since the future biomass heat-generating plant already assures CO2-neutral heat generation. Also no photovoltaic plant has been installed since it is more effective and less expensive to attain the desired maximum energy efficiency and economic efficiency by means of the other measures described. The heat recovery option was examined in the course of planning efforts in order to modernize with as little impact on the total rent including heat as possible. However this option was deemed financially infeasible. The selection criteria gave priority to measures which attain the optimum energy efficiency with modest funding, rather than the implementation of a project using every technically feasible and single measure desirable. Energy balance The measures described mean that the savings attained are at least 30 percent more than the requirements of the EnEV 2007 for new buildings. In the case of one building apartment block 907 the target is to attain savings of at least 50 percent more than required by EnEV Apartment block 907 was selected for this model project since thanks to its compact construction it offers the best preconditions for efficient insulation. According to the calculations the final energy consumption after modernization will average between 70 and 80 kwh per m 2 annually or more than 50 percent less than current consumption. CO2 emissions for the buildings of Märkisches Viertel will probably be reduced from 43,000 tons annually to 11,000 tons after the modernization measures have been performed on the GESOBAU buildings and drop to 0 with the modernization of the district heating plant.

16 14/15 Energy balance The measures outlined mean that the requirements of the Energy Saving Ordinance (EnEV) 2007 for new buildings are undercut by at least 30 percent. In the case of one of the properties in residential building group 907, the goal is even to fall below the requirements of the EnEV 2007 by 50 percent. The residential building group 907 was selected for this model project because, thanks to its compact design, it has the best prerequisites for efficient insulation. According to the calculations, the final energy consumption after completion of the modernization will amount to an average of 70 to 80 kWh per m 2 and year and thus fall below the current consumption by more than half. As a result of the energetic modernization measures on the GESOBAU buildings, the CO2 emissions of the stocks in the Märkisches Viertel will be reduced from tons per year to expected tons and will fall to 0 with the modernization of the district heating plant. Financial effects Up to million euros will flow into the complete modernization of the Märkisches Viertel. This corresponds to an average of 470 euros gross per m 2 of living space, with a range from 278 to 643 euros gross per m 2 of living space. The expenses are offset by savings in maintenance costs and additional income from higher rents and lower vacancies. The cold rents increase due to the modernization levy. Nevertheless, the total rent burden for existing tenants increases only slightly. The reason for this is that the currently enormously high (warm and cold) operating costs of 3.53 euros per m 2 will fall after the modernization to approximately 2.70 euros per m 2, assumed under cautious expectations. This value is therefore carefully calculated, as it can be assumed that the individual heating behavior of the residents and Financial impact EUR 440 million will have been invested in the complete modernization of Märkisches Viertel by This corresponds to an average of EUR 470 gross per m 2 living space, whereby the actual expense ranges from EUR 278 to EUR 643 gross per m 2 of living space. This expense is set-off by savings in maintenance costs as well as additional income through higher rents and lower vacancy rates. The basic rent increases on account of the modernization allocation. However the total rent burden for the current tenants only increases slightly. The reason for this is that based on cautious expectations, the currently enormous (heat and non-heat) operating costs of EUR 3.53 per m 2 are assumed to decrease to approx. EUR 2.70 per m 2. This value is calculated cautiously because it is assumed that individual heating habits of residents will only be adjusted to the changed post-modernization energy-conservation situation after a certain learning and acclimatization period. GESOBAU supports this process with appropriate energy advice. It is assumed that this value could decline further assuming constant price development. Thus the current high operating costs offer the opportunity to maintain the rent including heat for building customers at a nearly stable level despite the increase in basic rent due to the modernization. This is also decisive for the acceptance and success of the overall measures since many of the current residents cannot pay higher rents. Ultimately the economically desired climate protection effect of modernizing the buildings complements the economic interests of the landlord and the customers individual interests.

17 Modernization of the Märkisches Viertel in Berlin Energetic situation in the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin Energy conservation situation in the Märkisches Viertel residents only adapt to the changed energetic situation after the modernization after a learning and acclimatization period. GESOBAU supports this process with appropriate energy advice. It can be assumed that this value can still decrease if the price development remains the same.Today's high operating costs offer the opportunity to keep the warm rents for existing customers more or less stable despite the increase in cold rents caused by the modernization. This is also crucial for the acceptance and the success of the overall measure, since many of the current residents cannot bear higher rents. As a result, the economically desirable climate protection effect of the modernization of the building stock goes hand in hand with the business interests of the landlord and the individual interests of the customers. Pilot project Eichhorster Weg, modernized by, at night Showcase project Eichhorster Weg, modernized, at night

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19 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Housing management conditions and solutions

20 18/19 General housing conditions and solutions BERLIN HOUSING MARKET Development since the 1990s The Berlin housing market has been characterized by scarcity for decades. Housing vacancies first became an issue in the late 1990s. At that time, the strong new building activity after the reunification had an impact, which was based on the expectation of sharply rising population and household numbers. This expectation turned out to be deceptive: Berlin had 43 million inhabitants, almost as many as. According to the latest available figures from the Berlin Senate, 7 percent of Berlin's 1.89 million apartments were vacant for a long time in July. The information is based on electricity meter analyzes by the network operator Vattenfall. The Association of Berlin-Brandenburg Housing Companies (BBU), whose member companies manage around 35 percent of Berlin's housing stock, put the vacancy rate in its portfolio at 3.8 percent (December 2008) with a downward trend: at the end of 2007, 4.6 percent of the BBU Apartments stood empty. In contrast, in the Reinickendorf district, to which the Märkisches Viertel belongs, the vacancy rate among BBU member companies rose from 3.7 to 4.4 percent in the course of 2008. Housing demolition has not taken place in Berlin to any noteworthy extent. Only in the eastern large estates of Marzahn and Hellersdorf were around apartments demolished between 2003 and 2008, i.e. only 0.2 percent of Berlin's total stock, for reasons of market shakeout. Housing management conditions and solutions BERLIN HOUSING MARKET Development since the 90s The Berlin housing market was characterized by scarcity for decades. Apartment vacancy rates first became an issue at the end of the 90s. Then the intensity of new construction following the Wende was based on expectations of a heavy increase in population and numbers of households. This expectation proved inaccurate: in 2008 Berlin had 3.43 million inhabitants, almost the same number as in According to the most recently available figures from the Berlin Senate, 5.7 percent of the 1.89 million Berlin apartments were subject to longterm vacancy as of July The information was derived from the electricity meter analysis performed by the grid operator Vattenfall. The Association of Berlin-Brandenburg Housing Enterprises (Verband Berlin-Brandenburgischer Wohnungsunternehmen (BBU)), whose members manage some 35 percent of Berlin s housing stock, stated the vacancy rate in their holdings as 3.8 percent (December 2008) and declining: 4.6 percent of the BBU apartments were still vacant as of the end of In contrast the vacancy rate for BBU member companies in the Reinickendorf district, to which Märkisches Viertel belongs, from 3.7 to 4.4 percent in There has been no significant reduction in the amount of housing in Berlin. Only some 4,100 apartments that is on 0.2 percent of the total Berlin housing stock were demolished in the eastern large residential developments of Marzahn and Hellersdorf for market adjustment between 2003 and In 1999 the Berlin Senate adopted an urban development plan (StEP) Wohnen (housing) , assuming a quantitative excess in supply of 150,000 vacant

21 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions In 1999, the Berlin Senate decided on an urban development plan (StEP) living, which was based on a quantitative surplus of vacant apartments and interior development as a priority The goal of the housing policy defined. Vacancy rate falling Experts expect the vacancy rate to fall further in the next few years. According to the 2008 housing market report by the Investitionsbank Berlin (IBB), the general development of the Berlin housing supply level shows a steadily decreasing trend. In view of the low number of new builds, it must therefore be observed very closely whether the housing supply rate will stabilize at the current level over the next few years or whether the downward trend will continue. The IBB housing market report identifies a tendency towards shortages, particularly in the sub-segment of inexpensive apartments. The reduction in vacancy has two main reasons. On the one hand, new construction activity is very low; In 2008, the Berlin authorities approved the construction of just under apartments. On the other hand, according to the Berlin-Brandenburg Statistics Office, the number of households in Berlin has risen by three percent over the past five years. A further slight increase is predicted until 2015. In contrast, according to a study carried out by the Senate Department for Urban Development, the number of inhabitants in the Reinickendorf district is expected to decrease by 5.8 percent by 2030 compared to 2007. However, the investigation did not take into account the modernization of the Märkisches Viertel. In this context, too, GESOBAU assumes that the modernization measures will have a lasting effect. Because the now forecast decline is caused by an offer that is not in line with the market (of the apartments that have not been modernized) and the associated consequences. apartments and defined the interior development as the primary housing policy objective. Vacancy rate declines Experts anticipate that vacancy rates will continue to decline in the coming years. The general development in the Berlin housing supply, according to the 2008 Housing Market Report by the Investitionsbank Berlin (IBB), exhibits a continuing decline. Therefore given the decreasing number of new buildings it can be seen precisely whether the housing supply ratio will stabilize at the current level in the coming years or the decline will continue. The IBB housing market report indicates scarcity trends in the range of low-cost housing. There are two main reasons for the decline in the vacancy rate. On the one hand there has been very little new construction; in 2008 the Berlin authorities approved construction for just 6,300 apartments. On the other hand in the last five years the number of Berlin households has risen by three percent according to the Statistical Office of Berlin-Brandenburg. By 2015 a further slight increase has been predicted. In contrast the number of inhabitants in Reinickendorf district is expected to decline by 5.8 percent compared to 2007 by 2030 according to a study prepared by the Senate Department for Urban Development. However the study did not take the modernization of Märkisches Viertel into account. Even in this respect GESOBAU assumes that the modernization measures will have a sustained impact. That is because the currently forecast decline assumes that the housing situation is not adjusted to the market (the apartments have not been modernized) and that the logical consequences have their effect. Modernization wants to reverse this trend. This will happen because of housing suited to the market with very good value for money and substantially improved product positioning for the specific needs of individual target groups (e.g. older people).

22 20/21 Modernization will reverse this trend. This is achieved through a more market-oriented offer with a very good price-performance ratio and through product positioning that is much better geared to the specific needs of individual target groups (such as the elderly). SITUATION IN THE MÄRKISCHES VEERTEL Key figures for the housing sector In March, 26 percent of GESOBAU's apartments in the Märkisches Viertel were vacant. If you subtract the vacancy rate due to modernization, the rate is 5.27 percent. The fluctuation rate is 11 percent; without the change of residence within the GESOBAU portfolio, it reaches around 9 percent. The average monthly rent load currently shows the following picture: net rent 4.27 euros / m 2 warm operating costs 1.55 euros / m 2 cold operating costs 1.98 euros / m 2 surcharges 0.01 euros / m 2 gross rent 7.81 euros / m 2 2 The average net rent excluding heating is a good 10 percent below the average of the Berlin rent index of 4.75 euros / m 2. The operating costs make up more than 80% of the net excluding rent and are extremely high for the reasons outlined above. The average apartment size is 69.9 m 2. The range of apartments in the entire Märkisches Viertel is characterized by a great variety, ranging from one-room apartments with 40 m 2 to 110 m 2 five-room apartments has roughly different floor plans. SITUATION IN THE MÄRKISCHES VIERTEL Housing management key figures Of the 15,134 GESOBAU apartments in the Märkisches Viertel 8.26 percent were vacant as of March If one deducts the vacancy due to modernization this yields a rate of 5.27 percent. The fluctuation rate is 11 percent: excluding the internal apartment removals within the GESOBAU buildings this was some 9 percent. The average monthly rent burden can be seen as follows: Net basic rent 4.27 EUR / m 2 operating costs incl.heat 1.55 EUR / m 2 Basic operating costs 1.98 EUR / m 2 Surcharges 0.01 EUR / m 2 Gross rent including heat 7.81 EUR / m 2 The average net basic rent was thus some 10 percent below the average of the Berlin rental index of 4.75 EUR / m 2. Operating costs comprised more than 80% of net basic rent and are exceptionally high for the reasons described in the foregoing. The average apartment size is 69.9 m 2. Whereby there is a great variety in the apartments offered throughout Märkisches Viertel, from one-room apartments with 40 m 2 to 110 m 2 five-room apartments, and some 1,000 different floor plans. Tenant composition According to the last GESOBAU tenant survey from 2009, single-person households comprise the largest group in Märkisches Viertel at 37 percent. 36 percent of households comprise two people, 15 percent of four or more persons and 12 percent of three persons. A comparison to 1985 shows that the number of one-person households increased significantly while the number of three-person households declined drastically; each comprised 24 percent then. The average household size is now 2.2 persons. Altogether 36,200 people live in the development.

23 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Structure of the tenants According to the last tenant survey by GESOBAU from 2009, one-person households with 37 percent now make up the largest group in the Märkisches Viertel. 36 percent of households consist of two people, 15 percent of four or more people and 12 percent of three people. A comparison with 1985 shows that the number of one-person households has increased significantly, while that of three-person households has decreased markedly; both made up 24 percent each at the time. The average household size is 2.2 people. Overall, people live in the settlement. The process of demographic change does not pass the Märkisches Viertel either: 21 percent of the adult residents were between 60 and 69 years old in 2009, 18 percent had already celebrated their 70th birthday. The age group 18 to 39 years belonged to 28 percent, the age group 40 to 59 years 34 percent. Members of a hundred different nations live in the Märkisches Viertel. The most important countries of origin of tenants with a non-German background are Turkey, Poland and the successor states of the Soviet Union. A clear change is currently emerging: while existing customers of non-German origin account for almost 13 percent of the total tenants, this group makes up 27 percent of new customers. The proportion of new tenants who receive transfer income was .6 percent in the year. There is also a strong influx of families with children under the age of six. Demographic, social and cultural contrasts meet in a very small space, which harbor an increasing potential for conflict between the new tenant groups and the clientele of the older, structurally conservative people of German origin, some of whom have lived in the Märkisches Viertel for decades. Even Märkisches Viertel has not evaded the process of demographic change: in 2009, 21 percent of adult residents were between 60 and 69, 18 percent had already celebrated their 70th birthday. The age group 18 to 39 comprised 28 percent, the age group 40 to 59, 34 percent. There are citizens from hundreds of countries living in the Märkisches Viertel. The most important countries represented among tenants are Turkey, Poland and the successor states to the Soviet Union. Whereby a significant change can be found: whereas these tenants comprise just 13 percent of the total number of tenants, they comprise 27 percent of new tenants. The proportion of new tenants receiving transfer income totaled 33.6 percent in The heavy increase in occupancy by families with children under 6 is noticeable. Thus demographic, social and cultural contradictions coalesce in close quarters bringing with it increasing conflict potential between new tenant constituencies and those composed of older, structurally conservative people of German origin, some of whom have lived in Märkisches Viertel for decades. The foregoing figures emphasize the housing management challenge: The task is to maintain a balanced social mix amount of tenants and make Märkisches Viertel more attractive for solvent potential tenants. At the same time it is one of the tasks of a state-owned company, like GESO- BAU, to continue to provide affordable housing for broad segments of the population. That also means living space that is compatible with the AV Wohnen Berlin (SGB II, SGB XII). The current 25 percent share of apartments subject to these criteria is not to be changed in the course of the modernization measures. There is definitely no plan for demolition: The apartments in Märkisches Viertel will also be needed in the future.

24 22/23 The above figures underline the challenge in the housing industry: The aim is to maintain a balanced social mix among tenants and to make the Märkisches Viertel more attractive for solvent demand groups. At the same time, one of the tasks of a state-owned company like GESOBAU is to continue to offer affordable living space for broad sections of the population. This also means living space that is compatible with AV Wohnen Berlin (SGB II, SGB XII). The current share of 25 percent of the apartments covered should therefore not be changed in the course of the modernization measures. Dismantling is expressly not planned: the apartments in the Märkisches Viertel will also be needed in the future. MODERNIZATION MEASURES ON THE BUILDINGS General measures In addition to the energy-related modernization measures described, further structural steps are being carried out. The redesign of the entire development situation on the ground floors is of particular importance. New, attractively designed entrances mark the front doors and thus ensure better orientation. Passages that were previously open on the ground floor will be closed, creating space for rubbish bins, bicycles, charging stations for electric wheelchairs and tenant cellars. Where technically possible, video cameras increase the residents' sense of security while taking legal requirements into account. The concrete of the loggias and loggia scaffolding is also being renovated (including painting and brackets for flower boxes), and the stairwells and floor corridors are being redesigned. MODERNIZATION MEASURES FOR THE BUILDINGS General measures In addition to the energy-conservation modernization measures explained, other construction is performed. Redesign of the entire service area situation on the ground floors is of particular importance. New attractively designed entrances mark the building doors and improve general orientation. Previously open corridors on the ground floor have been closed, creating spaces for rubbish bins, bicycles, recharging stations for electric wheelchairs as well as tenant cellars. Wherever possible video cameras have been installed, taking legal regulations into account, in order to enhance the residents' feeling of security. The concrete in the recessed balconies and the parapets have been refurbished (including repainting and mounts for flower boxes) and the staircases and corridors have been repainted. Closing of rubbish chutes Waste disposal in Märkisches Viertel relied primarily on so-called rubbish chutes which gave tenants an easy means of disposing of rubbish but no incentives for waste sorting. 75% of the apartment buildings have this facility. In the course of the modernization concept and by resolutions of the owner consortium already 42 rubbish chutes have been closed. Thus 65% of Märkisches Viertel still has rubbish chutes (as of 09/2009). GESOBAU plans to close all existing rubbish chutes above all for waste management reasons. A study by the waste collector Alba indicated that even valuable material like paper, cardboard, glass and packaging are discharged through the rubbish chutes. In 2009, the degree of improper waste disposal in the domestic waste bins at six of the locations examined in Märkisches Viertel lay between 40 and 60 percent (50 percent average).

25 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Closure of the garbage chutes In the Märkisches Viertel, residual waste has so far been mainly disposed of by so-called garbage chutes, which allow tenants to dispose of their own Allow waste, but offer no incentive to separate waste. 75% of the housing stock has this facility on site. In the course of the modernization concept and through resolutions by owner associations, 42 garbage disposal systems have already been closed; this currently results in a rate of around 65% for the Märkisches Viertel (as of 09/2009). GESOBAU intends to close all existing garbage disposal facilities for, among other things, waste management reasons. A study by the disposal company Alba has shown that recyclable materials such as paper, cardboard, glass and packaging are also disposed of via the garbage chutes. At six locations in the Märkisches Viertel that were checked in 2009, the level of incorrect filling in household waste bins was between 40 and 60 percent (on average 50 percent). Furthermore, fire protection reasons speak in favor of closing the garbage chutes. Sprinkler systems are installed in the garbage rooms, but there is still a considerable risk of smoke coming from the floors through the garbage chutes. The Berlin fire brigade considers fires in the shafts to be particularly problematic and recommends closing the garbage disposal systems. After the garbage disposal facilities have been closed, some of the new heating supply lines can be routed through the former garbage chutes. This in turn lowers the modernization costs, since otherwise openings would have to be made in the concrete ceilings of all floors. At the same time, operating costs are reduced because, on the one hand, there are no cleaning costs for the garbage chutes and, on the other hand, disposal fees are reduced due to the lower volume of residual waste. According to calculations, the savings per household and year should amount to 60 to 100 euros. Another good reason for closing the rubbish chutes are those concerned with fire safety. Although there is a sprinkler system in the rubbish rooms, there is substantial risk that the residential floors could be saturated with smoke through the rubbish shafts. The Berlin fire brigade sees the risk of fires in the shafts as particularly problematic and recommends that the rubbish chutes be closed. After the rubbish chutes are closed, new heat utility lines can be fed in part through the former rubbish shafts. That too will reduce the modernization costs since otherwise penetration of the concrete floors of all stores would be needed. At the same time this reduces the operating costs since the cleaning expense for the rubbish shafts is eliminated and the lower volume of waste will reduce disposal charges. According to calculations, this ought to save each household between EUR 60 and EUR 100 annually. The closure will be complemented by a multi-stage waste management concept. The aim is to inform the residents about the new system, answer questions about waste sorting, control the building and the rubbish bin sites and immediately eliminate excess waste. MEASURES IN THE APARTMENTS Principle The aim of the modernization concept is to further differentiate the apartments on offer in Märkisches Viertel: whereas current tenants can expect to pay scarcely any more rent after the construction measures have been completed thanks to the lower operating costs the fundamental modernization of the vacant apartments should make them attractive to new, demanding customers willing to pay higher rents. This differentiation of offer and price ultimately supports the process whereby a balanced social mixture in the tenant community is reached and contributes decisively to the sustained stability of Märkisches Viertel.

26 24/25 The closure is flanked by a multi-level waste management concept. The aim is to inform the residents about the new system, to answer questions about waste separation, to check buildings and especially the rubbish stands and to remove litter immediately. MEASURES IN THE APARTMENTS Principle The modernization concept pursues the goal of further differentiating the housing offer in the Märkisches Viertel: While the existing tenants hardly pay more rent than before thanks to the lower operating costs after completion of the construction work, it also enables the thorough modernization of the vacant apartments to address new, discerning customers who accept a higher rent. This differentiation of offers and prices ultimately supports the process towards a balanced social mix of tenants and thus makes a decisive contribution to the sustainable stability of the Märkisches Viertel. Bathrooms The bathroom is being completely modernized in all apartments: the pipes and the sanitary facilities are being replaced and new tiles are being installed. The measures go beyond this in the vacant apartments. A comprehensive modernization is taking place here, which includes a new floor, new wallpaper and a new electrical sub-distribution with additional sockets. Floor plan changes Thanks to the variety of thousands of different floor plans, the Märkisches Viertel already offers the right offer for almost every demand group, from individuals to large families. Changes to the floor plan are therefore not the focus of the modernization measures. In addition, floor plans must be changed as soon as they require intervention in load-bearing walls, Baths The bathrooms will be completely modernized in all apartments: new pipes as well as new sanitary porcelain will be installed along with new tiles. The measures in the vacant apartments are even more extensive. Here modernization will be comprehensive, including new floors, new wall covering and a new electrical circuit box with additional outlets. Changes in floor plan Already today Märkisches Viertel has thousands of different floor plans to offer suitable housing for nearly any potential tenant segment, from individuals to large families. Therefore priority in the modernization measures has not been given to changes in the floor plan. Moreover, changes in the floor plan could frustrate the efficiency targets by generating high costs as soon as a change in structural walls is needed. However the current structural situation offers too few solutions suitable to the needs of the target group of older people. A new, attractive offer will be created for you in the course of modernization. Beyond that for example, a new open kitchen is installed in a one-room apartment so that the old kitchen can be transformed into a bedroom. Low barrier redesign More than a third of the tenants in Märkisches Viertel are over 60. In future the general demographic development will mean that there will be a higher number of people in advanced age. There are already numerous apartment options for this group in Märkisches Viertel. For instance, apartment block 913 is conceived as a senior citizen residence with one-room apartments. In addition, GESOBAU aims to redesign approximately 3,000 more apartments in the course of the modernization measures so that they are barrier free in various degrees. The following measures have priority:

27 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions are associated with high costs that conflict with the goal of economic efficiency. Structurally, however, there are still too few needs-based solutions, especially for the target group of older people. New, attractive offers are being created for them as part of the modernization. In addition, one-room apartments, for example, will have a new, open kitchen, with the old kitchen being converted into a bedroom. Barrier-free redesign More than a third of the tenants in the Märkisches Viertel are over 60 years old. Due to the general demographic development, an even higher proportion of older people can be expected in the future. There are already numerous housing offers for this group in the Märkisches Viertel. The residential building group 913 is designed as a senior citizens' home with one-room apartments. In addition, GESOBAU is striving to redesign around further apartments in a graduated scale to make them barrier-free as part of the modernization measures. Apartment block 916 is a pilot model. Two variants prevail here: 1. In this case the idea is to combine two apartments with a total space of approximately 140 m 2 and remodel them so that three living spaces of 1.5 rooms each with private bath are created. These are suitable for tenants that desire separate living space but also want to communicate with their co-residents in common spaces (living room and kitchen). Moreover, this floor plan solution is also suitable for three couples requiring nursing care; cooperation with social security agencies in the non-state welfare and nursing services. 2. In this case a living space of approximately 90 to 100 m 2 is to be remodeled so that in addition to the common rooms (living room, kitchen and bath) three separate rooms of between 15 and 20 m 2 without private bath are created . The target group for this offer is older singles with reduced income.

28 26/27 In order to prepare communal residential projects, GESOBAU has also identified various floor plans that can be inexpensively converted so that they are suitable for several tenants, mainly older or in need of care, to live together. The residential building group 916 has a pilot character in this regard. Two variants are in the foreground: In order to guarantee the quality of the measures designed to provide low barrier space appropriate to senior citizens, GESOBAU has had living quality certified by Wohnomod 50+ of TÜV Rheinland since Hier ist angedacht to merge two apartments with a total of approx. 140 m 2 and convert them in such a way that three living areas with 1.5 rooms each and a private bathroom are created. These are suitable for tenants who want separate living spaces, but at the same time want to communicate with their flatmates in communal areas (living room and kitchen). This floor plan solution is also suitable for three married couples in need of care; For this purpose, a cooperation with social organizations of the voluntary welfare is planned. 2. Here, a living space of approx. 90 to 100 m 2 is to be converted so that, in addition to common rooms (living room, kitchen and bathroom), three separate rooms between 15 and 20 m 2 without their own bathroom are created. The target group for this offer are older, low-income singles. In order to guarantee the quality of the measures aimed at barrier poverty and senior citizenship, GESOBAU has had the quality of living living comfort 50+ certified by TÜV Rheinland since 2009.

29 Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Modernization of the Märkisches Viertel in Berlin Housing management conditions and solutions Pilot project Eichhorster Weg: New house entrances, barrier-free apartments Showcase project Eichhorster Weg: New entrance areas, handicapped accessible flats

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31 Modernization of the Märkisches Viertel in Berlin District development of the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin District development in the Märkisches Viertel District development of the Märkisches Viertel District development in the Märkisches Viertel

32 30/31 District development in the Märkisches Viertel District development in the Märkisches Viertel INITIAL SITUATION History The Märkisches Viertel was built between 1963 and 1974 on an area in the north of Berlin that was previously occupied by residential houses. Along with Gropiusstadt in the south-east and Falkenhagener Feld in the north-west, it forms one of three large West Berlin settlements that arose in connection with the redevelopment of the inner city districts that were shaped by the Wilhelminian era. The Märkisches Viertel was designed for people. The need to create an infrastructure within a few years that could cope with the rapidly growing number of inhabitants proved to be a particular challenge during the time it was built. Complaints about a lack of day-care centers and a lack of recreational opportunities for young people contributed to the fact that the Märkisches Viertel had to struggle with considerable image problems in the early years. Some critics even declared the Märkisches Viertel to be the epitome of soulless urban development. A gradual improvement in the social infrastructure in the 1970s, however, led to a significant increase in tenant satisfaction and a better image. Location and traffic connections The Märkisches Viertel is located in the north of Berlin and forms a part of the Reinickendorf district. The district of Pankow borders to the east and south, the area of ​​which was separated from the Märkisches Viertel by the Berlin Wall until 1989. The Märkisches Viertel is connected to the public transport network via the Wittenau S-Bahn and U-Bahn station, which can be reached by bus or bike from the center of the Märkisches Viertel in five to ten minutes. From the Wittenau train station you can get straight to the POINT OF DEPARTURE History Märkisches Viertel was erected between 1963 and 1974 in a part of northern Berlin previously occupied by residential gardens. It is one of the three West Berlin large residential developments along with Gropiusstadt in the southeast and Falkenhagener Feld in the Northwest, built in conjunction with the refurbishment of the central city precincts of the end of the 19th century. Märkisches Viertel was designed to house 40,000 people. At its inception the particularly difficult challenge was to provide infrastructure within only a few years to satisfy the needs of the rapidly growing population. Complaints about the lack of crèches and recreational facilities for youth meant that Märkisches Viertel had to deal with serious image problems in the initial years. Some critics said that Märkisches Viertel was the epitome of lifeless and impersonal urban development. Gradual improvement of the social infrastructure in the Seventies however led to a significant increase in the level of tenant satisfaction and a better image for the development. Location and transport connections Märkisches Viertel is located in the north of Berlin and is a part of the Reinickendorf district. It borders Pankow district to the east and south, a district that was separated from Märkisches Viertel by the Berlin Wall until Märkisches Viertel is connected to the public city rail system via the S-train and Underground station Wittenau, which can be reached by bus or bicycle within five to ten minutes from the center of Märkisches Viertel. It takes 22 minutes to reach Alexanderplatz (with the No. 8 line of the Underground) from Wittenau station or 20 minutes to

33 Modernization of the Märkisches Viertel in Berlin District development of the Märkisches Viertel Modernization of the Märkisches Viertel in Berlin District development in the Märkisches Viertel in 22 minutes to Alexanderplatz (with underground line 8) or in 20 minutes to Friedrichstrasse station (with the S- Railway line 1). Earlier plans to extend underground line 8 from Wittenau station to the Märkisches Viertel will not be pursued. Nine bus routes operate in the Märkisches Viertel, mainly along Wilhelmsruher Damm, the main access road in the Märkisches Viertel. There is room for improvement in the development of the southern part of the Märkisches Viertel, which can only be reached by bus 221, which only runs during the day. Sufficient free parking spaces close to the apartment are available for cars. Both City-East and City-West can be reached in around 30 minutes by car. Ownership structure It is characteristic of the Märkisches Viertel that the vast majority of the rental apartments (15,134) are owned by GESOBAU. In addition, there are only two other apartment owners with smaller holdings: the state-owned company degewo with 614 residential units (Senftenberger Ring 80-92, Dannenwalder Weg) and the max housing association with 556 residential units (Senftenberger Ring 48-52D). Furthermore, as a result of GESOBAU's tenant privatizations, there are several hundred condominiums. Infrastructure After the Märkisches Viertel was exposed to strong criticism when it was built because of the initially poorly developed infrastructure, today it has a diverse range of social and cultural facilities. In the catchment area of ​​the settlement there are six primary and two secondary schools (including two private schools), a secondary school and a support center. There are also 14 day-care centers with a total of places. reach the Friedrichstrasse station (with the S 1 city rail line). Earlier plans to extend the No. 8 from Wittenau station to Märkisches Viertel have not been pursued. Nine bus lines cover Märkisches Viertel, mainly traversing the Wilhelmsruher Damm the main road in Märkisches Viertel. Connection to the southern part of Märkisches Viertel could be improved since now it is only served during the day by the bus No There is sufficient free parking for cars near the apartments. It takes about 30 minutes to get to either the eastern or western parts of the city by car. Ownership composition Rental apartments prevail in Märkisches Viertel (15,134) since most are owned by GESOBAU. There are only two other apartment building owners with smaller buildings: the degewo with 614 residential units (Senftenberger Ring 80-92, Dannenwalder Weg) also state-owned and the housing cooperative max with 556 residential units (Senftenberger Ring 48-52D). In addition there are a few hundred condominium apartments resulting from a tenant privatization by GESOBAU. Infrastructure In the wake of the serious criticism to which Märkisches Viertel was subjected at its inception due to the poor infrastructure, a variety of social service and cultural institutions operate there today.There are six elementary schools and two secondary schools (including tow private schools), a high school and a public assistance center in the development s catchment area. In addition there are 14 crèches with a total of 1,200 places. Since it opened in 1976, the cultural center is the Fontane Haus with its large event hall. It is also the site of the local public library, the citizens office, a music school and the Volkshochschule Reinickendorf.

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