News from 12/17/2007
Berlin: Another hotel project at main railroad station
The Meermann Chamartin Group is planning the construction of a hotel and convention complex on the north side of the main railroad station in Berlin for a sum in the nine digits. For this purpose, the German-Spanish company recently acquired from Aurelis Real Estate an area measuring 5,160 sqm between the Invalidenstrasse and the railroad tracks. A dual building complex with 38,000 sqm of gross floor area is to be developed there. According to the statements given, the 400-bed hotel is going to be located directly next to the main station building. The project presents difficult architectural demands as it will be erected on top of the Tiergarten tunnel access. Due to these technical difficulties, commencement of construction can take place no earlier than the beginning of 2009; completion is scheduled for 2011. Just a few days ago, the project developer Vivico presented plans for a hotel and convention center on the southern side of the station.
Commerz Real AG: Office tower in Singapore acquired for some €324mn
Commerz Real AG has acquired the office property "78 Shenton Way" in Singapore for some €324mn. The plot with a total area of 33,000 sqm comprises the 34-story office building "North Tower" and the seven-story project development "South Tower," connected to each other by a common entry. The investment object is going to be integrated into the open property fund Hausinvest Global, Commerz Real AG announced. The seller is Shenton Singapore Holdings Pte. Ltd., a joint venture made up of Credit Suisse Real Estate Fund International Holding AG and TTO Investment, a fund administered by CLSA (Crédit Lyonnais Securities Asia) Capital Partners Singapore. The "North Tower" is almost completely rented; completion of the "South Tower" is slated for the end of 2009.
Fair Value REIT-AG: Share in fund sold to IC Immobilien Holding
Effective December 1, 2007, the Fair Value REIT-AG has sold its majority share in a BBV-Immobilien-Fonds (Property Fund) specializing in retail and nursing homes to IC Immobilien Holding AG. The firm intends to use the yield from the sale—at least €10mn—for acquisitions in its main future segments: office and logistics properties. Fair Value is giving the securing of its status as a REIT as the reason for the present sale, as it has been unclear whether or not nursing homes can perhaps be classified as residential properties.
Metro: Property package in northern Italy sold to BNL-Fund
The Metro Concern has sold a commercial property portfolio in northern Italy to the BNL Banca Nazionale di Lavoro (National Bank of Labor) for €61.5mn. The five properties rented to Mediaword are located in Milan, Cinisello Balsamo, Parma, Brescia and Erbusco in Brescia province. The buildings with a total area of approximately 35,000 sqm are going to be integrated into the BNL property fund "Dinamico," which will then own a portfolio with 17 objects.
Vivacon AG: Frank Zweigner appointed as new board member
As of January 1, 2008, the 33 year-old Frank Zweigner will become a new member of the board of the Vivacon AG in Cologne. Zweigner has been active for the firm as manager for property acquisitions since 2004. After obtaining his certification as a construction engineer at the University of Applied Sciences in Aix-la-Chapelle, Zweigner completed advanced studies at the European Business School (ebs) in Oestrich-Winkel in the Rheingau, with a degree in real estate economics in 2002.
Summit Germany: Four properties acquired for €34mn
Summit Germany announced the acquisition of four properties in Germany for €34mn, reporting that the Deutsche Telekom, the bakery chain Kamp’s and an insurance company are among the tenants. The four objects are targeting €2.43mn in annual rental income, which would amount to a net yield of 7.1%.