News from 06/04/2007
SEB ImmoInvest: Fund acquires office building in Bratislava
SEB Immobilien Investment GmbH has acquired the office and business building “Europeum Business Centre� in the Slovak capital Bratislava for its public fund SEB ImmoPortfolio Target Return. Previous ownership of the fully-leased building with a current market value of €37.1mn was split between ImmoConsult, Vienna (a fully-owned subsidiary of the Austrian Volksbank Gruppe), and the British venture capital group Mayfield. The seven-story building was constructed in 2004 and possesses around 10,000 m² of office, retail, and archive space, as well as 183 parking places.
Ideenkapital: New US fund focuses on revitalization
The new US fund from Ideenkapital AG, US Properties Value Added (US PVA), is investing in office properties which must be revitalized. The intention is to acquire properties under the current costs of replacement and to increase the value through investments in the quality of the buildings, so that higher prices can be achieved through resale. Investment manager for Ideenkapital is the US property specialist Hines. Up to now, the fund is represented by three locations and has acquired, among others, the “Doral Corporate Center� in Miami. At $56mn, the purchase price was 80% under the costs associated with replacement, according to Ideenkapital. In the course of revitalization, the office area, among other things, was retailored, and within six months, the occupancy rate climbed from 82% to 88%, informs Ideenkapital.
After its return to the black, Aareal Bank AG is in the process of growing. In 2007, the bank is aiming for new business transactions in structured property finance of around €10bn, said CEO Wolf Schumacher to the main assembly. He sees China, where Aareal Bank still wants to open an office this year, as the largest growth market.
Orco Germany: Loan with options for €100mn placed
To finance further growth and the development of its property portfolio, Orco Germany has placed a loan with institutional investors with options valued at €100mn. The term of the loan averages 5 years; interest coupon amounts to 4%. Altogether, 9,328,851 subscription warrants, which entitle the underwriting of a share, with a term of seven years (2014) and a preferential price of €16.90 were offered. The market capitalization of Orco Germany at the end of May 2007 amounted to approximately €500mn. Orco Property Group is still testing the possibility of changing this year from an open market into a regular market.
The coffers of the open-ended funds are well-filled at
present, whereby it is difficult to allocate the resources at the moment,
as hardly any suitable investment objects are to be found. The cash
inventory of the funds is thus on the rise, putting pressure on yields.
The sale of the property portfolio Leo III is entering its hot
phase. The advisory council commissioned by the Hessian Ministry of
Finance, HSH Real Estate AG, and Atisreal Consult GmbH, has started
its sales pitch for the relevant investors. The property transaction, in
the course of which the State of Hesse intends to sell and lease back
long-term 34 properties belonging to the State, will be carried out in the
form of a structured auction procedure. The transaction is to be concluded
during the coming autumn and bring in revenue amounting to approximately
€400mn.