News from 07/12/2007
Union Investment: First investment in the German logistics market
Union Investment Real Estate AG, Hamburg, has acquired a logistics park project that's under development in Worms for its open-ended property fund “Immo-Invest: Europa.� The total investment volume amounts to around €27.5mn. The project will be realized by Habacker Engineering GmbH, Düsseldorf, and from Q1 2008, it will offer around 30,000 m² of logistics space, as well as another 1,300 m² of office and public space. The property is rented for two years to Trans Service Team Logistic-Systems. With two logistics centers in Hungary (Páty and Vescés), Union Investment has been present in the logistics segment since 2005. The acquisition in Worms marks its entry into the German logistics market.
Alstria Office: Reorganization into a REIT still in 2007
Alstria Office AG has sold two residential properties and is now in compliance with requirements for reorganization into a REIT. According to legislation, no REIT is permitted to hold in its portfolio German residential properties that were completed before January 1, 2007. Nonetheless, Alstria Office AG shall still reorganize into a REIT this year. As the property corporation informs, the sales agreements for both properties, with a total value of €3.6mn, were already concluded in March. The residential properties were transferred to the new owner a few days ago. The firm's portfolio includes 70 office properties with a total rentable area of approximately 770,000 m² and is worth around €1.6bn.
HRE: €10bn of new business in Q2
On the basis of initial estimates, Hypo Real Estate Group (HRE) is reporting Q2 pre-tax results of approximately €183mn. The unexpected volume of new transactions (€10bn) is said by HRE to be material to the good result. For this reason, the board of directors is increasing its forecast for FY 2007. A pre-tax increase to over €710mn is now expected; the previous forecast was just over €680mn.
Frankfurt: Bids in August for European Central Bank project
The construction of the European Central Bank's new headquarters draws closer. In August, the bank will invite international bids in its search for a general contractor. At a cost of €500mn, the building will be erected on the site of the former Großmarkthalle (literally, “large market hall�) and offer space for a total of 2,300 people—1,300 of which are the bank's employees. Construction is scheduled to begin in October 2008 and to be completed by the end of 2011.
Frankfurt: Patrizia plans residential and office complex in the Westend
Patrizia Immobilien AG has acquired a large plot of approximately 8,000 m² in Frankfurt's Westend for around €40mn. The plot's central location on Feuerbachstraße was decisive to the purchase decision, according to the firm. Starting in early 2008, Patrizia wants to develop a residential and office complex on the site. Beforehand, the site must be fully cleared of a commercial property from 1961. Gross surface area of around 25,000 m² is planned for the new building. Approximately 70% of this space is intended for residences, 30% for offices. Investment volume for the new building will amount to €100mn to €120mn, construction will last 4-5 years.