News from 01/03/2008
REITs: Italy introduces tax-privileged property trusts
With the Società de Investimento Immobiliare (SIIQ) (Society for Property Investment) legislation, Italy introduced tax-privileged property companies as of January 1. In contrast to their German counterparts, these Italian REITs will be permitted to invest in residential properties; moreover, an individual shareholder will be allowed to hold the majority of the shares. An SIIQ must distribute at least 85% of its profits annually.
Curanum: Audley Capital acquires 10% share in operator of senior citizen homes
The international investment fund Audley Capital has acquired a 10.1% share in Curanum, a Munich-based operator of senior citizen and nursing homes. Experts expect the home operator to play an important role in the consolidation of the nursing market. According to previous reports, Curanum intends to take over home capacities of 800 to 1,000 beds annually.
Colonial: Spain’s second-largest property concern in trouble
Spain’s second-largest property concern is in grave difficulty: after Inmobiliaria Colonial’s stocks lost 40% of their value within two days, the Spanish stock exchange supervisory authority suspended trading. At present, the company’s market capitalization amounts to a mere third of its €9bn debt. Colonial announced its intention to reduce its indebtedness through partial sales. After the stock market slump, Luís Portillo, the president of the group and one of the main shareholders, was forced by the other shareholders to resign.
Centro: Shopping mall concern in financing difficulties
Australia's Centro Properties Group, the second-largest shopping mall owner in Australia and the fifth-largest in the U.S.A., wants to put itself up for sale. To bring the financially stricken concern back on track, the company is also considering the issue of new stocks as well as the sale of funds. Centro has to refinance some AU$3.09bn by February 15. According to the company’s management, a number of strategic investors and financial investors have already shown interest.
Dresden: MEIAG acquires portfolio with six apartment houses
MEIAG Sächsische Immobilien AG has acquired a portfolio with six apartment houses in southeastern Dresden from a property group. The 60 units at Am Sand 1-12 have a total residential area of approximately 2,400 sqm. The Dresden regional branch of Dr. Lübke acted as intermediator.
Mülheim/Ruhr: Norwegians acquire logistics hall at Rhein-Ruhr harbor
A Norwegian investment company has acquired a logistics hall and an administration building with a total of approximately 8,000 sqm of lease area at Mülheim’s Rhein-Ruhr harbor from a private investor. The lot measuring around 25,000 sqm also offers an option for an additional 5,000 sqm of hall area. The areas are rented by a subsidiary of the Bäko Landeszentrale Nord eG cooperative. Cubion Immobilien AG acted as intermediator for the transaction. The Norwegian buyer has commissioned Cubion to acquire further objects.
Homburg Invest: Baltic portfolio acquired from SEB for some €185mn
The Canadian property company Homburg Invest has acquired a Baltic portfolio with 54 properties in Estonia, Latvia and Lithuania from SEB Group for approximately €185mn. The company reports that the deal announced in April, was finalized at the end of December 2007. 39 of the properties acquired in a sale and lease back procedure are occupied by SEB under long-term leases; the remaining 15 objects are occupied by other tenants or have short-term leases with SEB. The transaction was financed by a long-term loan from the SEB Merchant Bank. Homburg Invest has announced its intention to make further investments on the Baltic market.
Market: Compulsory auctions rose 0.8% in 2007
According to Argetra, a publishing house specializing in economics, the number of compulsory auctions of houses at German district courts rose again: there were 91,800 auctioning sessions last year, 0.8% more than in the year before. On the other hand, the market value of the objects auctioned off fell by 5.1% to a total of €16.53bn. The largest number of compulsory auctions per capita is still in eastern Germany; however, the sharp increase of compulsory auctions in the east has now been stopped. The smallest number of compulsory auctions was registered in southern Germany and in the city states.