News from 03/28/2007
HCI Capital: Office building in Florida sold to Transwestern
Hamburg-based HCI Capital has sold “Douglas Entrance,“ an office building that was part of its US property fund portfolio HCI USA I, to US property investment company Transwestern. The property in question was a Class A office building in Coral Gables, Florida. The price amounted to US$126.25mn. After a fund duration of around three years, the fund company will provide investors with a return quota, including already paid dividends, of 166%. After capital expenditure deductions, including surcharge, a result of around 20.3% per year was achieved.
CGS: Logistics property in Lyon acquired for special fund
At a transaction volume of around €12mn, the Italian grocer Caserta S.A. recently sold a logistics/transportation property in Lyon (Isle d'Abeau) to Commerzbank subsidiary Commerz Grundbesitz-Spezialfondgesellschaft (CGS) for around €12mn. CGS acquired the property, with a total area of around 14,000 m², for its special property fund, CGS-Immo-Spezial. Scheduled for completion in January 2008, the building is completely pre-leased to Caserta and its sister company, La Place.
HCI: US umbrella property fund exceeds target
According to information from the firm, HCI Hanseatische Capitalberatungsgesellschaft mbH's umbrella property fund, HCI Real Estate Growth I USA, has currently exceeded its 2007 target by 13%. The fund is currently invested up to 63%. According to its own information, HCI wants to invest nearly US$100mn of the fund's own capital in seven target funds. The target funds in question are from CB Richard Ellis, Blackstone, Walton Street, AEW, GMAC, and RECAP with a total investment volume at over US$50bn.
The two southern states of Bavaria and Baden-Württemberg still have the best economic outlooks in Germany, but some locations in the “new“ states of the former East Germany are catching up quickly. According to the “Future Atlas“ of the Swiss Market Research Institute, advances in the East are inconsistently distributed, however.
Berlin: Pramerica buys revitalized E-Werk downtown
Pramerica Real Estate Investors recently acquired E-Werk, a protected monument that served as a transformer station before its conversion in the 90s into a venue of the techno scene, at 78/80 Mauerstraße. The property possesses 14,600 m² of mixed-use (85% office, 10% residential, and 5% cultural) area.
Frankfurt: Offices and residences planned at Degussa area
DIC Deutsche Immobilien-Chancen and Morgan Stanley Real Estate Funds, co-owners of the Degussa area in downtown Frankfurt, are planning construction of a 150 m residential and office tower, as well as a smaller office high rise, at the site. The design of the architectural office of KSP Engel und Zimmermann provides for 100,000 m² of gross floor space, 20,000 m² of which shall be used as residential space. It's estimated that investment costs for the so-called “Main Tor“ (literally, “Main Gate“) project will be around €500mn. According to information from DIC's managing director Ulrich Höller, work on the project shall be begun in the second half of 2008.
Hamburg: Warburg-Henderson buys office building on Spitalerstraße
Warburg-Henderson Kapitalanlagegesellschaft für Immobilien mbH recently acquired an office and retail property on Spitalerstraße as a first investment for its new fund, European Core Property Fund No. 1. The property will be managed by HIH Hamburgische Immobilien Handlung. Framode GmbH, with its Pimkie fashion label, is the main tenant.
Dortmund: Harenberg City Center resold after seven months
A fund advised by JP Morgan Asset Management – Real Estate (Europe) recently acquired the Harenberg City Center, a property in Dortmund with 21,168 m² of office area, from Hannover Leasing. Main tenants of the 18-story high rise across from the main train station are Deutsche Bahn, Dresdner Bank, and Brockhaus AG. Hannover Leasing first acquired the property in September 2006 from publisher Bodo Harenberg; at that time, a purchase price of €40mn was mentioned.
The Lindner Group shall develop a four-star-superior hotel for €26.5mn near Dresden's baroque landmark building Zwinger in the area of the earlier Herzogingarten (“Duchess Garden“).
Hamburg's apartment building market is experiencing a pronounced boom phase which will be sustained in 2007. In sections, prices are already two yearly rents over that of 2005, in “good“ and “very good“ locations the difference averages up to three years' difference.