News from 08/13/2007
Adler Real Estate: Additional portfolio with twelve office properties acquired
Adler Real Estate AG and a subsidiary of AIG Global Real Estate are acquiring an additional portfolio consisting of twelve office properties in Germany. The properties, with a total surface area of 54,000 m², are located in Berlin, Frankfurt, Munich, and other German cities. This purchase is the third common investment of Adler Real Estate and AIG Global Real Estate. Only a few days ago, Adler Real Estate announced that it had bought four office properties in the Munich metropolitan area.
Patrizia: Profit slump through Q2
In the first half of 2007, Patrizia Immobilien AG's pre-tax profits fell to €15.1mn (first half of 2006: €22.4mn). At €58.4mn, the concern's total turnover was far below the €128.5mn brought in during the corresponding period of the past year. The firm emphasizes, however, that these figures are still within the framework of its planning, stating that its strategy is strongly oriented to the second half of the year in order to obtain a surplus of €45mn for all of 2007 and €65mn in 2008. In the important business sector of apartment privatization, considerable income has not yet been taken in. According to sales planning, for instance, the portfolios of MEAG and HDI Gerling, with a total of 9,500 residential and commercial properties purchased by Patrizia in 2006, will be privatized starting in Q3 and Q4—some of them starting as late as April 2008. While approximately 1,200 apartments were privatized by the firm in 2006, there were only 93 properties so far this year. In Q2 2007, Patrizia acquired 1,602 residential and 74 commercial units. 3,000 to 4,000 units are to be acquired in the course of the entire year; 2,400 units are to be passed on through global sales or through privatizations. The inventory currently comprises 12,500 apartments.
Signa Property Funds: “Ikaros Center� acquired in Luxemburg
Signa Property Funds, Düsseldorf, has announced the acquisition of Luxemburg's “Ikaros Business Center.� According to Signa, the office property is destined for a closed-ended property fund. Built in 2004, the center's purchase price is approximately €164mn, seller is a Luxemburg consortium. The main renters, with a total of nearly 30,000 m² of rentable area, are Deloitte and Nordea Bank. The term of both rental agreements is for fifteen years. The Ikaros Center is located in Luxemburg's Neudorf district, approximately five minutes from the airport and ten minutes from downtown.
In the first half of 2007, 90,000 m² of office space changed hands in Stuttgart—an increase of 70% in comparison to the corresponding period last year, reports Dr. Lübke. At 6.1%, the vacancy rate is the lowest in comparison to other German office metropolises. As but little new space came to the market, moderate rent increases are said to be possible during the rest of the year.
Higher incomes, as well as other indicators of economic vitality, are combining with undersupply to drive rents higher in the Rhine-Main area.