News from 04/30/2007
DIC Asset: Commercial portfolio sold for €86mn
At a price of around €86mn, DIC Asset AG has placed a portfolio with 10 commercial properties with two Luxembourger investors. The properties, which are for the most part used as offices, possess a total area of around 60,000 m² and are located mostly in medium-sized German cities like Gelsenkirchen, Bochum, Ulm, Regensburg, Ingelheim, and Neuss. The occupancy rate stands at approximately 95%. The transaction with the name “Mustang� has been offered within the framework of a limited operation, informs DIC. The sale took place partially as a share and partially as an asset deal.
Colonia Real Estate AG, Cologne, is increasing its principal 40% with the issue of new stock. Underwriting revenue of €179mn is planned; it shall flow into the expansion and financing of a recently acquired residential package of 9,850 units. According to reports, Swiss Real Estate, with a majority share in Colonia Real Estate of just under 33%, wants to increase its number of shares.
DekaBank has sold Frankfurt's Trianon office tower to the Morgan Stanley Euro Zone Office Funds (MSEOF). The total rentable area of the sold building ensemble amounts to around 70,000 m². Analysts from Atisreal assesses this deal as a clear signal that international investors still have a high interest in German investment markets.
Market: 2007 prices increase 2%
In the current year, the national average for residential buildings will climb 2%, forecasts DZ Bank. According to the institution's appraisal, prices will continue to fall in East Germany, however. The bank criticizes high transaction costs and low flexibility in expediting sales which, in its opinion, hamper the market. Although the investments in residential buildings are increasing, construction activities are still low in comparison to the rest of Europe.
USA: KanAm founds branch in Atlanta
KanAm Grund Kapitalanlagegesellschaft mbH has founded an independent branch in Atlanta, Georgia. Local presence is expected to result in more efficient control of property management and in current market information. Furthermore, it would be possible to react promptly to possible acquisition possibilities, perhaps even without participation in complicated auction procedures, according to KanAm Grund. After the foundation of an initial branch in Paris in 2005, Atlanta is the second independent branch of the fund company.