News from 07/29/2010
Logistics market: JLL forecasts over 3.5mn sqm in space take-up for year
The German storage space market is profiting from the recovery of the global economy: according to a Jones Lang LaSalle (JLL) market report, the take-up volume climbed during the first half of the year by about 11% compared to the same period in the previous year, to approximately 2mn sqm. Several projects postponed last year are said to have meanwhile been completed. Rainer Koepke, the Director of Industrieimmobilien JLL Deutschland, comments, “We are confident that space take-up of a magnitude equal to that of 2007 and 2008 of more than 3.5mn sqm will be reached by the end of 2010.” At around 821,000 sqm (+24% compared to the first half of 2009), storage space take-up in the big five regions of Berlin, Düsseldorf, Frankfurt including Wiesbaden/Mainz, Hamburg and Munich attained the highest level for half a year during the last five years. Hamburg is leading the big five with a space take-up of 269,200 sqm, followed by Berlin (179,900 sqm), Munich (158,800 sqm), Frankfurt (137,600 sqm) and Düsseldorf (75,600 sqm).
Karstadt: First lenders’ group approves rent reductions
A large group of lenders to the Highstreet landlords consortium has approved rent reductions for the insolvent Karstadt department store chain. Insolvency administrator Klaus Hubert Görg called this agreement an important step towards the bailout of the firm, spurring Highstreet on to obtaining the remaining necessary agreements quickly. A Highstreet spokesperson hinted that this could be performed in circulation procedure. Time is running short: the sale of Karstadt to Nicolas Berggruen is supposed to be finalized on August 8. The interval is not sufficient to call a lenders’ meeting on schedule.
JLL: Earnings and revenue improved significantly in second quarter
Jones Lang LaSalle (JLL) closed its second quarter with a profit of $32mn. During the same period in the previous year, the international property consulting firm had still announced a loss of $14mn. JLL boosted its revenue by 18% to $680mn. Nearly all of its segments were able to grow significantly - especially transaction business at +65%. In the EMEA (Europe/Middle East/Africa) region, JLL raised its revenue by 20%, to €171mn. The firm recorded its greatest increases in France (48%) and Great Britain (40%).
KGAL/Hansainvest: Special fund acquires 82 apartments in Stuttgart
KGAL and Hansainvest have acquired the residential project called Filderlofts in Ostfildern near Stuttgart for their mutual fund KGAL/HI Wohnen Core 2. The project comprises the construction of 82 apartments with a total of about 8,060 sqm of living space in Scharnhauser Park, the completion of which is slated for the end of 2011 or the beginning of 2012. The seller is Bietigheimer Wohnbau GmbH. The initiators announce that with this purchase, the special residential fund has now invested a total of some €190mn – more than half of its targeted total investment volume of approximately €370mn. At present, KGAL is seeking further residential portfolios with a total volume of around €180mn for its fund. The volume of the individual purchases should range between €10mn and €40mn.
North Rhine-Westphalia: Amazon plans new logistics center with 100,000 sqm
The internet dealer Amazon is planning the opening of a new, 100,000 sqm logistics center in North Rhine-Westphalia in 2011 and will meanwhile be occupying already existing logistics buildings in Werne this fall. Amazon is using 60,000 sqm in a former Ikea warehouse in the city northeast of Dortmund. Amazon has not yet divulged the location of its new logistics center.