News from 05/21/2007
Union Investment Real Estate: MSREF and IVG take over Pegasus portfolio
Union Investment Real Estate reports, with the sale of their "Pegasus" portfolio, the completion of the restructuring of their open property funds UniImmo: Deutschland and UniImmo: Europa. 53 German properties from the inventories of both funds with a total surface area of 525,000 m² were sold to Morgan Stanley Real Estate (MSREF) and IVG. 28 properties held by UniImmo: Deutschland are going to the MSREF, including the "Neue Kranzler-Eck" (a landmark cafe on Kudamm) in Berlin (total price: €1.36bn). IVG has acquired 25 objects, mainly from UniImmo: Europa (total price:
€495mn). In addition, the "Frankfurter Welle" (total area: 85,000m²) was sold to MSREF for €703mn. According to the communiqué, the purchasing price was 14% higher than the most recently calculated market value of the portfolio properties, resulting in a profit for the funds of €324.5mn.
The fund company London & Capital has acquired two retail properties for its German Real Estate Fund in Tübingen and Eisleben for a total of just under €56mn. With it, it increases its fund volume to €330mn.
TAG: Firm aspiring to become Germany's REIT pioneer
TAG Tegernsee intends to issue a REIT as one of the first firms in Germany. TAG will probably place the REIT during Q3, Chairman of the Board Andreas Ibel stated to the Handelsblatt. The fund is to comprise a sum of at least €300bn. Foreign investors are particularly interested in REITs on the German market, Ibel declared. After a profit hike during Q1 2007, TAG is planning to increase its 2007 pre-tax profit to €31mn.
The Australian property firm Multiplex has founded a fund for European property investments. The initial portfolio of the Multiplex Capital European Fund comprises shares in 67 German properties in the retail, logistics, office, and nursing home segments which were acquired for a total of €355mn. Compared with an independent evaluation of the properties amounting to €363.6mn, a 2.4% discount was negotiated. The fund is to invest throughout Europe and in all asset classes.
Kenmore: German branch opened
The British investor Kenmore has opened a German branch in Berlin. Daniel Herrmann, who was before responsible for property transactions for the fund company Hansainvest, is the managing director.
Boetzelen Real Estate: IPO still in the first half of 2007
Boetzelen Real Estate AG still wants to be on the exchange in the first half of 2007. Provision is made for the opening price in the official market (Prime Standard) of the Frankfurt Stock Exchange. According to the firm, proceeds from the issue shall be used to develop the existing property portfolio. To position itself better for the planned growth, Boetzelen AG transformed itself in April of this year into a corporation and increased its equity capital to €15mn.