News from 09/14/2007
Grainger: Britons to invest €700mn until 2010
The housing company Grainger Trust plc.–the largest British property investor listed on the stock exchange–intends to invest around €700mn in Germany until 2010. Investments will focus on southern Germany and the metropolitan region in the Rhine-Neckar area. At the Moment, Grainger has ca. 5,000 condominiums and 150 commercial units in its German portfolio. At mid-year 2006, it took over around 400 condominiums from the city of Göppingen for €23mn.
Degi: Office building in Paris acquired for €117mn
From its fund Degi International, Degi Deutsche Gesellschaft für Immobilienfonds mbH has sold the office building "Guynemer" in the Paris office district La Défense for a total of €117.7mn to SIIC de Paris, a subsidiary of the Spanish project developer and investor Realia. According to statements made by Degi's CEO, Malcom R. Morgan, Degi acquired the object that is currently fully rented to EDF Electricité de France in June 2004 for around €84mn, adding that Degi now was able to sell it for a price significantly higher than the last determined market value. According to Degi management, the dynamic development in the French office property market is reflected in the share price, which after the transaction and after subtracting utilities and taxes rose by €0.37. The transaction was accompanied by STAM Europe, Degi's local asset manager. For Realia/SIIC de Paris, EXA acted as consultant.
Magnat: Investing in Georgian Republic for the first time
Magnat Real Estate Opportunities GmbH & Co. KGaA has executed its first investment in the Georgian Republic. Together with a local partner and another co-investor, the company, focusing on eastern Europe, acquired a property with a surface area totalling 20,136 m² in the capital Tbilisi. On the site, the “Digomi Shopping� retail park, with a usable area of 30,000 m² and 300 parking spaces, is planned. Construction will commence next year, completion of the project is scheduled for 2009. Investing a total of $20mn, Magnat expects a yield from rentals of up to 30%.
Commerz Grundbesitz: Office and commercial property in Prague acquired for €90mn
For its open-ended public fund hausInvest global, Commerz Grundbesitz Gruppe (CGG) has acquired the office and commercial building "Charles Square Center" (CSC), located on Charles Square in Prague. The property was sold by Quinlan Private, an international private equity and property group. The investment amounts to around €90mn. Being nearly fully rented, the CSC has a total rentable area of ca. 20,000 m². Around 15,000 m² thereof are used by offices, another 5,000 m² contain retail shops and restaurants. After the acquisition of the "Metropole" shopping center in 2004, this is the second purchase of Commerz Gruppe in Prague.
Deutsche Wohnen AG (Deuwo) wants to increase its profitability and grow through further acquisitions. Michael Zahn, member of Deuwo's board of directors, told the Handelsblatt that deals including up to 20,000 units are possible, and that portfolios containing 500 to 5,000 condominiums are being examined. Currently, Deuwo's portfolio encompasses mainly apartment buildings in Berlin and the state of Rhineland-Palatinate. For Zahn, new locations are interesting as long as they contain a minimum of 2,000 units. Above all, in Berlin the company wants “to use every opportunity for further acquisitions."