News from 03/22/2007
Redevco: Investment of up to €700mn planned until 2011
In the next three to five years, Redevco Services Deutschland GmbH wants to invest €400mn to €700mn in direct acquisitions and project developments in Germany's retail, office, and logistics/transport sectors. In the process, the portfolio share of large, single-function downtown retail properties shall be reduced in favor of smaller properties in 1A locations or, alternatively, retail centers.
Patrizia Immobilien AG, Augsburg, does not rule out another capital advance this year. Furthermore, Patrizia wants to found a capital investment company and enter the fund business. Target group: Institutional investors.
ING Real Estate: Cannstatter Carré sold to Encore+ Fund for €100mn
On March 21, LaSalle Investment Management and Morley Fund Management aquired the Cannstatter Carré, a shopping center in downtown Stuttgart with 22,000 m² of retail space and 15,000 m² of office space, for their open property fund Encore+. As the seller, ING Real Estate received €100mn in the transaction.
HSH Real Estate/Atisreal: Mandate to market Hessen's properties
The finance minister of Hessen has authorized HSH Real Estate AG and Atisreal to conduct the planned sale of a third package of the state's property (LEO III). The package includes 40 properties that the state largely wants to lease back. Hessen, Germany's centrally-located state that includes Frankfurt am Main, aims for revenue of at least €400mn from the sale. The transaction shall be concluded this fall. The state took its legal advice from Clifford Chance. Last year, Hessen had already sold a portfolio to CA Immo for €770mn, and in 2005, a portfolio for around €1bn to Commerzbank subsidiary CommerzLeasing und Immobilien Gruppe (CLI).
Hamburg: €8bn turnover in the property market
According to a study from broker association IVD Nord, just under €8bn were realized in Hamburg's property market in 2006—55% more than in 2005. A large part of the turnover resulted from the sale of large commercial properties or property portfolios.
Prices in Cologne's residential market remained stable in 2006. The average asking price for condominiums sank about €27 to €1,886/ m² in 2006. Prices for single-family homes sank, on average, about €5,000 to €292,000. Corpus Immobilien Makler GmbH reports these figures in its new residentail market survey City Report Wohnen (Residential City Report).