News from 10/08/2007
MEAG: Portfolio sold to Lehman Brothers for €400mn
MEAG Munich Ergo has sold a portfolio comprising 28 commercial properties located throughout Germany for approximately €400mn. The purchaser is the property fund Lehman Brothers Real Estate Partners (LBREP) administrated by Lehman Brothers. The Lehmann fund made an offer higher than that of the DIC Asset AG which, according to Financial Times, also wanted to acquire the MEAG portfolio. LBREP financed the purchase without borrowing, using only its own capital. MEAG was advised for the transaction by Atisreal, LBREP by CB Richard Ellis and Atos.
DIC Asset AG: Property portfolio acquired for €320mn
DIC Asset AG has acquired a property portfolio for a total of €320mn from Axa Group Germany and DBV Winterthur. The portfolio comprises 15 property complexes, particularly in the Rhein-Main area, Wiesbaden, Düsseldorf, Berlin and Munich, with a total surface area of approximately 182,000 sqm. Axa and DBV are going to rent back 37% of the area long-term. Further lessees are, among others, Deutsche Telekom, SAP and Saturn. 94% of the surface area is rented; the average running period of the leasing contracts is about six years. The current annual rent is nearly €23mn—amounting to a return of 7.1%, according to DIC AG.
Euro Ejendomme: Investmentments targeted at €200mn to €250mn annually
The Danish property company Euro Ejendomme has announced its intention to invest €200mn to €250mn annually in Germany. It is interested, however, only in objects with volumes starting at €3.5mn. Euro Ejendomme is investing in hotel, retail, office and logistics properties and, since spring 2007, in senior citizens’ and nursing homes. Approximately €650mn have gone into Germany since 2003. Investments in other European countries are particularly attractive for the Danes thanks to the present double taxation treaty.
Berlin: Tishman Speyer selling Quartier 205 to Spanish investor
The Spanish multi-billionaire Armancio Ortega—the chairman of the textile concern Inditex—has acquired the "Quartier 205" on Friedrichstrasse in Berlin, together with the private bank Banif, a member of Santander Group. Seller is the U.S. property company Tishman Speyer. The media are quoting the purchase price at €275mn. The office and retail complex is eight stories high, with a total surface area of 51,300 sqm. 36 luxury apartments and a garage with 1,100 parking spaces also belong to the building. Quartier 205 is one of the most expensive addresses in Berlin.
HSH Real Estate: Joint venture with Pacific Star in Singapore arranged
HSH Real Estate AG has arranged a joint venture with the property investment and asset manager Pacific Star in Singapore. The partnership has a long-term orientation, HSH Real Estate reports, intending to cooperate in initiating funds for direct and indirect investments in the Asian area. For this purpose, HSH Real Estate is going to solicit capital among institutional and private investors in Germany, while Pacific Star will take over the responsibility for acquiring and administering suitable objects. A first fund, investing in a portfolio with a volume of approximately €500mn, is already in preparation.
Berlin: Surface area turnover dropped slightly—peak rents risen
According to the current office market report issued by Angermann Global Property Alliance, there has been a turnover of 420,000 sqm of office space in Berlin this year up to now—a decrease of about 10% compared to the previous year. Angermann is estimating a surface area turnover of 550,000 sqm by the year’s end (previous year: 610,000 m²). Office space of up to 3,000 sqm in the areas of Kurfürstendamm, Friedrichstrasse and Potsdamer/Leipziger Platz are in particular demand, the report states. At the end of the third quarter, the vacancy rate was 8.6% (previous year: 9%), with surface inventory remaining unchanged at 18.3mn sqm.