News from 11/28/2007
Cologne: BEOS acquires Carlswerk complex in Mülheim for development
In the framework of an off-market transaction, BEOS GmbH (Berlin) acquired the Carlswerk in Cologne-Mülheim from NKT Cables GmbH for an international group of investors. The premises include 20,000 sqm of office, and 90,000 sqm of commercial area, mainly in historic brick buildings. BEOS is planning to invest an additional €75mn on the area to develop a modern business campus including office, commercial, and service areas.
Signa Property: Business tower in Zagreb acquired for closed-end fund
For €71.6mn, Signa Property Funds Group acquired the "Hoto Business Tower" in Zagreb, the capital of Croatia. The Croatian subsidiary of Deutsche Telekom, Hrvatski, is the sole tenant in the class A property constructed in 2004. According to Signa, the company’s 15 year lease on the object is for 25,576 sqm and 350 parking spaces. In spring, 2008, the object is to come on the market for private investors as the closed-end property fund Signa 08 Zagreb, Signa’s CEO Frank Tölle said. Landesbank Hessen-Thüringen (Helaba) participated in financing the transaction by providing a €50mn loan.
Commerz Real: First acquisition in South Korea for hausInvest global
Commerz Real AG conducted its first acquisition in South Korea. The Commerzbank subsidiary announced that it has acquired the office and business building "Choongmuro Tower" for its open-end fund, haus Invest global. The building is located in the eastern sector of Seoul’s central business district. The property includes a total area of around 17,000 sqm on thirteen upper and four basement floors, mainly occupied by offices. Areas for retail and gastronomy purposes are also available in the building. The seller of the fully rented "Choongmuro Tower" is Movie ABS, a company owned by Merrill Lynch.
IKB: KfW to double risk provision
For the recovery of IKB, significantly more capital is required than was previously estimated. KfW, a state-owned bank, and a major shareholder in IKB, has to increase its risk provision to the Düsseldorf Bank serving medium-sized businesses from €2.3bn to €4.8bn, as became known yesterday. KfW confirms this increase by saying that "new information has arisen which essentially effects evaluation" of the risks of IKB’s special-purpose entity Rhineland Funding which is directly involved in the U.S. mortgage business.
Lübeck: Breakthrough for Deutsche Immobilien AG’s hotel project
In the drawn-out negotiations concerning the hotel that Deutsche Immobilien AG intends to build on the area of the former Aqua Top water park in Travemünde, a breakthrough has occurred. The newspaper Lübecker Nachrichten reports that an agreement was reached by the city of Lübeck, the seaside Hotel Maritim bordering the area of Aqua Top, and Deutsche Immobilien AG. The agreement paves the way for the construction of a three to four-star hotel including some 200 rooms that will replace the water park. Deutsche Immobilien AG intends to invest €40mn to €50mn in the hotel project. Construction could commence at the beginning of 2009, Bernd Ruschmeyer, Deutsche Immobilien AG’s general manager, told LN, adding that it has not yet been decided under which flag the hotel will be operated after its completion in 2011. Currently, negotiations are underway with two to three interested parties.