News from 10/15/2007
Berlin Hyp: Deutsche Bank taking over NPL package
Berlin Hyp is selling an NPL portfolio comprising around 45 property financings
with a volume of €162mn to the Real Estate Special Situations Group of Deutsche Bank. The package includes mainly commercial objects with regional emphasis on Berlin and the new states. "Considering the worsened market situation due to the subprime crisis, we think that the problem-free sale was a very big success," says Jan Bettink, Berlin Hyp’s Chairman of the Board. It was decided that no comments will be made concerning the purchasing price.
German investment market: JLL forecasts record volume of €55bn for 2007
According to Jones Lang LaSalle (JLL), transaction volume on the German commercial property market during the first nine months of the current year reached approximately €44bn—a 20% rise compared to the same period of the previous year. For all of 2007, JLL is expecting a new transaction volume record of up to €55bn, although the figures for the first three quarters do not yet reflect changed conditions due to the U.S. mortgage crisis.
Stuttgart: €1.1bn investment turnover by end of September
According to Colliers Bräutigam & Krämer, investment turnover on Stuttgart's commercial property market surpassed €1.1bn by the end of the 3rd quarter of 2007. For the entire year, the brokerage firm is forecasting a transaction volume about as high as the previous record-setting result of approximately €1.5bn for all of 2006. As in the previous year, the investment market in 2007 was also characterized by large-scale portfolio transactions on the part of international investors such as Goldman Sachs, Morgan Stanley, and IVG, said Frank Leukhardt of Bräutigam & Krämer. Examples were prominent office objects such as the "Bülow Turm," or Bülow Tower, in the Löwentorzentrum (or Löwentor Center), the "Zeppelin Carrée," and the Stuttgart
administration building of Allianz, which all changed their owners. Bräutigam & Krämer ascertains sustained low yields for these and other highly valuable commercial objects, reporting that returns in top locations in the office segment are slightly under 5%; for commercial buildings in the inner city, they have dropped as far as 4.6%.
Office market: Renewed rise in rental turnover during third quarter
During the third quarter of 2007, rental turnover for office space rose again. According to Colliers Property Partners, over 2.345mn sqm of office space were rented during the first three quarters of 2007 in Berlin, Düsseldorf, Frankfurt,
Hamburg, Munich and Stuttgart, a 37% rise compared to the same period in the previous year. Düsseldorf scored the highest growth in the annual comparison with 57% to 300,000 sqm, together with Berlin (46%, to 446,400 sqm). The Colliers network also recorded high increase rates for the other locations (Frankfurt: 28%, to 459,900 sqm; Hamburg: 32%, to 425,000 sqm; Munich: 36%, to 595,000 sqm; Stuttgart: 29%, to 128,000 sqm). For all of 2007, Colliers is predicting rental turnover amounting to approximately 3mn sqm at these six locations.
Alta Fides: Strengthened growth through dormitory subsidiary
Alta Fides AG has set higher goals in growth for the coming years. The reason for the firm's strengthened growth is the newly founded Campus Real Estate AG, Alta Fides reports. A
turnover of €120mn is targeted for the business year of 2008. The subsidiary specializing in the construction of dormitory complexes for students is already to contribute half of this. For the current year, Alta Fides is expecting a threefold increase in turnover to €60mn. At present, Campus Real Estate is planning 1,300
residential units. A further 2,500 units each are to be added next year and in the following years. For the coming five years, Alta Fides is announcing €750mn in investments on the part of Campus Real Estate.
Berlin: Akelius intending to expand residential portfolio
The German newspaper Tagesspiegel reports that Akelius GmbH, a subsidiary of the Swedish Akelius Fastigheter AB, is planning to expand its residential inventory in Berlin to approximately 8,000 units. The firm states that it enlarged its inventory to around 2,500 residential units by September, 2007. According to Pal Ahlsén, Akelius’ General Manager in Germany, expansion is taking place before the background of square meter prices for residential properties in Berlin which are comparatively low compared to international standards. While €1,000 to €2,000/sqm are paid in Berlin, prices in Stockholm are twice to four times as high.