THOMAS DAILY

Property Investment News Germany

News from 03/13/2007

Pirelli RE: Expansion planned in Germany

This year, Pirelli RE wants to acquire more residential and business properties in Germany, particularly in its large cities. The percentage of Pirelli property assets located outside of Italy should increase from 14 to 25%.

Hotels: Germany continues to be the focus of international chain experts

International hotel businesses are presently anxious to gain a foothold or to strengthen their commitment to the German market. According to information from Stephan Gerhard, President of Treugast, there are currently German projects with 30,000 rooms in the pipeline. The competition among four- and five-star hotels is becoming especially acute.

Berlin: Kranzler Eck is part of the Union Investment package

With 50 properties, the new Kranzler Eck is part of a property package in the federal territory that Union Investment Real Estate AG (formerly Difa) wants to sell. Beyond that, the firm still has not made known which Berlin properties are contained in the portfolio offer. The property, completed in 2000, has 37,000 m² of office area and 23,000 m² of retail area and is around 86% leased.

Stilwerk: Property portfolio sold to a British investor group

Details of the €75mn transaction have been provided.

ING Real Estate: Heilbronn's Stadt Galerie acquired from ECE for €100mn

Details of the transaction have been provided.

Open property funds: 455 transactions in 2006

In 2006, open property funds have collectively sold 455 properties. According to a study of BVI Bundesverband Investment und Asset Management, 155 transactions were allotted for acquisition, 340 properties were sold. The transaction volume amounted to €5.5bn for the acquisitions and €17.6bn for the sales.

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