News from 03/28/2008
GWB Immobilien AG: Fivefold operating profit increase
GWB Immobilien AG attained an operating profit before interest and taxes (EBIT) amounting to €11.7mn during the 2007 business year (2006: €2.2mn) and an earned surplus of €6.7mn (2006: €2.2mn). Property portfolio investments allowed GWB's balance to grow by 57.2% over the previous year, reaching €105.2mn. Due to the financial crisis, object sales that had been planned for the end of 2007 were not carried out. The value of the property portfolio itself increased from €9.7mn to €98mn. Yield per share rose by €0.75 to €1.36. The portfolio is to be expanded in 2008 to a volume of €120mn.
Eco Business-Immobilien AG: Concern's result reaches historic high
Austria's Eco Business-Immobilien AG presented positive figures for the 2007 business year: thanks to good operative development, earnings before interest and taxes (EBIT) climbed by 59% to €60.8mn. Earnings before taxes (EBT) increased by 68% to €41.7mn during the same period. The €32.8mn result was announced as an historic high for the concern, an 83% rise compared to the previous year. At €24.8mn, a new record was also set for funds from operations (FFO), an indicator for the operative yield strength of a company, discounting appreciation profits. Profit per share grew by approximately 12.8% to €1.11. For 2008, the firm announced further domestic and foreign investments: the development projects begun in 2007 in Austria, Germany, Luxembourg, Hungary and the Ukraine are to be continued; new projects are said to be already under review. Moreover, the property portfolio is to be expanded further by selective acquisitions.
Aareal: Heightened activity in Asia and CEE countries
Aareal Bank has confirmed its preliminary figures for the 2007 business year. For 2008, the board has formulated cautious optimism and has announced an extended strategic planning horizon. In its structured property financing segment, the bank wishes to further its internationalization by expanding its Singapore and Warsaw locations into distribution hubs for the high-growth regions of Asia/Pacific and Central/Eastern Europe (CEE). The consulting and services division was said to be an important new source of income and is to be developed further through targeted investments both in the product portfolio and in marketing capacity.
Eurocastle: Profit drop for 2007—losses during 4th quarter
Eurocastle Investment Limited, specializing mainly in German commercial properties, announced €134.9mn in net, after tax profit for the 2007 business year. Compared with the prior year (€143.8mn), this shows a reduction of 6.25 %. However, the Fortress subsidiary was significantly affected by the financial crisis during the last quarter of 2007 and reported losses of €205.1mn after taxes. For the same period of the preceding year, it booked a €9.7mn surplus. NAV per share dropped to €23.05 during the 4th quarter (Q4 2006: €27.95). The firm attributes this setback to, among other factors, a €220.1mn decline in the fair value of its commercial properties.
Frankfurt/Rhine-Main: Only 2,000 more hectares for commercial construction
Leeway for commercial and residential construction in the Rhine-Main region is now smaller. In the new draft of the regional zoning plan, the Frankfurt/Rhine-Main metropolitan planning organization reduced the area originally projected for commercial use from 2,800 to 2,400 hectares. For residential use, only 2,500 hectares are now designated in the Rhine-Main region, instead of the former 3,300. Parallel to the reduction, floor space growth was concentrated in the larger cities. The modified draft was the planning organization's response to criticism by Frankfurt, Hanau and Offenbach, among others, of the first draft.
Deka Immobilien: Deka ImmobilienGlobal invests in Osaka again
For its open property fund Deka-ImmobilienGlobal, Deka Immobilien (Properties) has acquired the three-part building ensemble "Urban Terrace" completed in 2006 in the center of the western Japanese metropolis Osaka. The purchase price for the completely rented object in a prime inner-city location ran to approximately €66mn; the seller was the Japanese project developer Urban Corporation. The fund company stated that Japan, due to its stable economic situation and its great potential for commercial properties, will continue to play an essential role in Deka's global investment strategy.
Aberdeen: Nordic Fund I acquires logistics center in Sweden
Aberdeen Property Investors has invested again in Scandinavia. For its open property fund Aberdeen Property Nordic Fund I SICAV (FIS), tailor-made for German institutional investors, the firm recently signed a purchase contract for a ca. 70,000 sqm logistics and distribution center in Sweden. The Torsvik industrial area located 10 km south of Jönköping comprises 40,400 sqm of total lettable area (mainly storage space). The building constructed in 1999 and expanded in 2003 is completely rented for an 11-year term. The net initial return is quoted at 6.1%.
HGA Capital: German residential property fund started
HGA Capital is starting a further German fund. Its "HGA/Wohnportfolio Deutschland I" is investing in three residential projects in the Hamburg and Munich metropolitan regions comprising nearly 500 apartments with approximately 40,000 sqm of lettable area. Almost 97% of them are rented. The fund's investment volume is around €55.7mn, €24.4mn of which are equity capital. The annual distribution of the fund which will probably run until 2023 is forecast at an initial 5.25%, rising to 6%. The minimum investment is €5.000, plus 5% agio.
NCC Deutschland: 31% increase in construction, 1,002 residential units sold
NCC Deutschland GmbH, a subsidiary of the Swedish concern NCC AB, boosted its construction contracts by 31% to €248.7mn in 2007 (2006: €190mn). The firm stated that it sold 1,002 homes and apartments during the past business year—a 40% increase compared to 2006—and that its expansion strategy of the past four years has now been completed. "In the future, we are going to concentrate on further increasing our share in the existing markets," said Olle Boback, CEO of NCC Deutschland. Of NCC's business, 85% goes to property developers; 15% as a contractor for third parties such as private builders and investors.