News from 02/05/2008
Gagfah: Financial Director Löffler leaves company
A switch in Gagfah’s financial management: Martin Löffler, CFO, left the company on January 31, the daily newspaper Financial Times Deutschland reported. CEO Burkhard Drescher will assume the position temporarily. Recently, there have been differences between Löffler and Fortress, Gagfah's majority shareholder, according to the report. The U.S. financial investor, which brought the firm onto the stock exchange in 2006, has used it to concentrate its German residential inventory.
HSH Nordbank: €7.6bn in property credit sold
According to the newspaper Handelsblatt, HSH Nordbank has sold a portfolio of property credit with a volume of €7.6bn. Quoting informed circles, the paper reported that the package went in a three-way split to Hypo Real Estate (€2.6bn), BNP Paribas (€2bn) and Lehman Brothers (€3bn). It was also announced yesterday that Claudio Lagemann, director of HSH’s property segment, left the company on January 31 and the bank confirmed a related report made by the magazine Euro Property. The bank stated that Lagemann informed the board on January 18 that he was resigning. He had only assumed that position in April, 2007.
BVT Residential: U.S. fund establishes fourth investment project
All four BVT Residential 6 investment projects in the U.S. residential project fund issued by Munich-based BVT Holding GmbH & Co. KG have now been established. In addition to the projects previously announced in Austin, Denver and Phoenix, the fund is investing in a share of a property company that is building a class A apartment project in southwestern Las Vegas. BVT’s specialized local partner for all four of the projects is Fairfield Residential LLC. BVT budgeted the total investment volume of the fund at $238mn, with $50mn in equity capital. Meanwhile, equity capital was raised from the originally planned $50mn to $67mn. The predicted term of the fund is approximately four years after investing is completed. Disbursements are quoted at 12%. A minimum share of the fund is $20,000, plus 3% fees.
Climate index: Optimism regarding income—downswing on investment market
The atmosphere on the German investment market is ambivalent: While firms are making positive income estimates, they are expecting both sinking demand and reduced prices on the investment market. This is the result of a poll taken by the property consulting firm King Sturge within the framework of a new property activity index comprising income climate (130.7 points in January) and investment climate (90.9). In January, the total climate index reached a slightly positive rating of 110.1 points. BulwienGesa was commissioned to take the survey.
DTZ Corporate Finance: First Brazilian fund goes to market
DTZ Corporate Finance wants to raise $200mn from European institutional investors for property investments in Brazil during the coming months. It announced that ten developments in São Paulo and Rio de Janeiro have already been identified for the Monteiro Aranha Brazilian Real Estate Fund, into which $80mn (€55mn) are to flow. The property fund conceived by the Brazilian holding company Monteiro Aranha S.A. invests in minority shares of residential, office and industrial properties and targets a total return (IRR) of more than 20% annually after taxes. The term of investment is six years, with two extension options of one year each. Minimum investment is $5mn. In addition to the acquisition of residential and commercial properties in São Paulo and Rio de Janeiro, a share in a luxury hotel with apartments in Rio de Janeiro is planned, among other projects.