News from 06/12/2007
Hochtief: Takeover of the Budapest airport is completed
Hochtief AG has concluded the takeover of a 75% controlling interest in Budapest's airport. A consortium of Hochtief AirPort (HTA) has taken over shares from the British airport operating company BAA, informed the construction company. The sales agreement for over €1.9bn was signed at the beginning of May. After the financial close, the operative responsibilities also went over to the new owner. In the coming five years, the consortium wants to invest €261mn in the modernization and upgrading of the airport. The franchise agreement with the Hungarian state, which holds the remaining 25% of the shares, runs until 2080.
Cologne: CLI sells new Lufthansa headquarters to Prudential fund
CommerzLeasing und Immobilien AG (CLI) recently sold the Lufthansa headquarters on Mülheimer Straße in Cologne's Deutz district to Prudential's M&G Fund. Scheduled for completion in Q4 2007, the building will possess 20,000 m² of rentable office area that is leased to Lufthansa for a period of ten years. The transaction was brokered by Cushman & Wakefield and Lovells.
The Austrian Conwert Immobilien Invest AG has acquired a property portfolio in Leipzig with 19 turn-of-the-century houses in favored locations for €11.3mn. The price of €770/m² makes it possible to achieve yields of around 7%—assuming moderately-calculated rents of around €4.5/m², informs the firm. Conwert is currently investigating further transactions in Germany with a total value of over €350mn.
Deutsche Bank: Brussels shall permit a joint venture with Strabag
In April, the construction company Strabag and Deutsche Bank announced their planned joint venture for property development at the Office of Fair Trade in Brussels. By the end of July, it will be decided if the joint enterprise will be approved in a simplified procedure. The new DB Development shall realize extensive infrastructure and property projects in Russia. Strabag and Deutsche Bank each hold 49% of the shares, the remaining 2% are in the possession of business man Dimitrij Garkusha, who will also be the CEO of the joint enterprise.
Deutsche Wohnen AG has expanded its property portfolio: In southern Hesse and in Vordertaunus, the firm acquired 154 residential and two commercial units. On top of that, a students' residence hall with 239 units was purchased in Mannheim. The average monthly rent of the residences in Hesse is €7.79/m², the vacancy rate currently amounts to around 2%. The average rent of the student residences amounts to €6.80/m². The total purchase price for the properties ranges from around €18.4mn. Deutsche Wohnen calculates with an internal interest rate at around 11% with 25% equity capital.