News from 03/15/2007
Corpus: Investments in the millions planned for retail properties
Citicorp, a joint venture founded by Citigroup, and Corpus Immobiliengruppe want to invest €500mn in retail properties. According to information from the Börsen-Zeitung, a first transaction of over €45mn has already taken place. Furthermore, a joint venture with another investment bank for investments in office properties, as well as another merger in the residential segment, is planned, according to information from Corpus CEO Michael Zimmer.
Multi Corporation: €900mn for further expansion
The Dutch Multi Corporation has secured a new credit line of over €900mn. Hypo Real Estate Bank International and NIBC Bank are the credit providers. Multi wants to finance additional growth in European markets. Among other things, the project developer last opened new offices in the Ukraine, Poland, Romania, Bulgaria, and Luxemburg.
Market: JLL sees Frankfurt on its way to a “buy“ position
Jones Lang LaSalle (JLL) sees Frankfurt, followed closely by Hamburg and Munich, on its way to a “buy“ position. “Gains through growth increases until 2008/09 and more yield compression,“ predicted JLL CEO Tony Horrell at a MIPIM press briefing on the theme “Global Risks and Gains.“
In addition to this forecast, Horrell delivered predictions for eleven more global property markets. “Property markets worldwide will be flooded with capital. Every five dollars that are invested will bring up to a dollar in revenue, and we see a strong investment market approaching us in 2007,“ according to the expert.
Wuppertal: Tower Group again buys residential and commercial portfolio
The Danish Tower Group A/S buys again in Wuppertal. The firm has closed deals on the acquisition of 29 properties with a total of 19,952 m² of residential and commercial area. The portfolio contains 290 residential lease agreements and eight commercial lease agreements. In December 2006 and January 2007, Tower Group had already acquired residential and commercial portfolios in Wuppertal.
Düsseldorf: Tower Group acquires residential and commercial properties
The Danish Tower Group A/S buys six properties in Düsseldorf with 4,351 m² of residential and commercial area. The portfolio contains 67 residential lease agreements and nine commercial lease agreements.
Retail properties in Cologne are very high on investors' wish lists. According to Comfort GmbH, international investors will accept, with a high security requirement for real “prime locations,“ a beginning yield with a four before the decimal point. This satisfies the standard of a sales multiple of the year's net rent of more than 20. Comfort counts the sale of the Neumarkt Galerie to the Irish investor Quinlan Private and the sale of the Olivandenhof to an international investor among the most spectacular investment deals in the Domstadt (literally, “Cathedral City“).