News from 01/28/2008
Jones Lang LaSalle: Takeover of Kemper's announced
The property consulting company Jones Lang LaSalle (JLL) will take over the Kemper's group. Kemper's is Germany’s leading retail property advisor, providing a full range of investment, leasing, consulting, valuation and management services. With the deal, JLL aims to become market leader in the German retail sector. According to the announcement, pending approval from the German Monopolies and Mergers Commission, both JLL's management and the owners of Kemper's agree to complete the acquisition by May, 2008. Details concerning the transaction will be communicated in a press conference conducted by both companies after finalizing the deal. The termination of association between Kemper's and Cushman & Wakefield (C&W) was announced only last Friday. In Spring, 2004, C&W acquired a 25% share in Kemper's Holding. After failed negotiations, the four-year, limited-term agreement was not prolonged. Consequently, Kemper's exercised its option to re-buy the shares.
Frankfurt region: Demolition signals start of new office buildings in Neu-Isenburg
Tschoerner Real Estate GmbH will soon start demolition work in the commercial district "Zeppelinheim-West" for its office project in Neu-Isenburg. On the 24,500 sqm lot at the corner of Admiral-Rosendahl-Strasse 3-5 and Flughafenstrasse, Tschoerner will build an ensemble composed of four office buildings with a total usable area of some 25,000 sqm. The first of the four buildings should be ready for occupancy as early as the third quarter of this year.
Neuss: mfi gives up plans—Tenkhoff at starting line
mfi Management für Immobilien (Management for Property) AG has finally given up its plans for the “Neuss Arcaden” shopping center because part of the land it hoped to use is not at its disposal. The firm announced that a smaller solution with significantly less area makes no economic sense for the city, for local business or for mfi as investor and future operator. Instead, Berlin-based Tenkhoff Properties’ “Kastell-Center” project might now be developed. At present, 17,000 sqm of sales area are planned. The company will now look for potential anchor tenants, CEO Joachim Tenkhoff told the daily newspaper Neuss-Grevenbroicher Zeitung. Kaufhof is one possible candidate.
Heilbronn: C&A to be anchor tenant in the Klosterhof retail building
The textiles chain C&A will be the anchor tenant of the Klosterhof retail building now under construction in the center of Heilbronn. Of the total sales area amounting to 10,500 sqm, 6,000 sqm will be occupied by the company. The chain's present location at the Friedrich-Ebert-Brücke (Friedrich-Ebert-Bridge) will be retained, the company confirmed in statements made to the local press. The project at the Kiliansplatz being developed by Immobilien-Treuhand GmbH & Co. (ITG) should be finished by the end of 2008. At the moment, only the fashion chain New Yorker has signed on as a tenant. Further potential lessees are a Müller drugstore market and the Madison fashion chain. Also under construction is ECE Projektentwicklung's (Project Development) “Stadtgalerie” (“City Gallery”) in the inner city of Heilbronn with some 13,000 sqm of sales area. The opening of the Stadtgalerie is scheduled for March, 2008.
GPT Halverton: €83mn raised for Dutch Active Fund
GPT Halverton, the European subsidiary of the Australian GPT Group, announced the first closing in its Dutch Active Fund (DAF). According to the report, a total of €83mn was raised from European institutional investors. Halverton plans to raise further equity capital of up to €50mn for the second and last closing in mid-2008. The DAF is the sixth fund issued by GPT Halverton. Its portfolio currently comprises 21 office properties, 18 commercial properties and a logistics center valued at a total of approximately €292mn. Most of the properties are located in the Randstad agglomeration composed of, among others, the cities of Amsterdam, Rotterdam, Den Haag and Utrecht.
Berlin: Investment turnover climbs 65% in 2007
Atisreal reported that last year the Berlin investment market topped the previous year’s figures by 65%. With the new transaction record given at nearly €6.9bn, Berlin surpasses Munich on the list of the most important investment locations and is now in second place, behind Frankfurt. Portfolio deals contributed almost 57% to the total turnover attained in the capital.