News from 05/23/2008
Dresdner Bank: Sale of Frankfurt headquarters imminent?
Dresdner Bank, owned by the Allianz concern, may be planning the sale of its headquarters in Frankfurt. According to the daily newspaper Financial Times Deutschland, brokers recently put out feelers to investors to determine if there was any interest in the “Jürgen Ponto” high-rise in Frankfurt’s railway station quarter. A price in the area of €500mn was signaled. The report indicated that Dresdner Bank would lease the building back for a period of 12 years. The 166 m tall high-rise was built in 1978 and is currently being renovated. A spokesperson for the bank denied any plans for a sale. In view of poor speculation to the tune of €850mn by its investment bank Dresdner Kleinwort, the concern could certainly use the proceeds of the sale.
Union Investment: Logistics building acquired in Helsinki for €9.8mn
For approximately €9.8mn, Union Investment Real Estate has acquired a logistics building close to the Vantaa International Airport in the Finnish capital of Helsinki. The property is to become a part of the open property fund Immo-Invest: Europa. The seller was a consortium of owners consisting of Novator Properties, Ajantay Oy and the Royal Bank of Scotland. Jones Lang LaSalle Finland functioned as the broker. The building at Tikkurilantie 136 is rented long-term to a single tenant; it is said to be one of the few modern logistic buildings with good connections to the airport and expressways.
Dresden: Baywobau completes Neumarkt's Quartier III
Baywobau Dresden has completed the Quartier III, an ensemble of five residential and commercial houses at the Neumarkt, after 15 months of construction. For €36.8mn, approximately 8,600 sqm of lettable area and an underground garage with 76 parking spaces were built. From the lettable area, 4,600 sqm go to 47 studio and 18 full-sized apartments, 2,800 sqm to stores and gastronomy, and some 1,200 sqm to offices. All the retail and gastronomic space is already rented, as are most of the apartments and offices. The plot measures 2,200 sqm. Ownership of the ensemble is now held by AXA Investment Deutschland and Volkswohlbund Deutschland.
Market: Q1 rental and sale price ranks for German cities
Munich, Frankfurt, Heidelberg, Stuttgart and Freiburg are the most expensive cities in Germany for residential rentals. Compared to the fourth quarter of 2007, Freiburg was nudged down from fourth to fifth place, according to Empirica's rental and purchase price ranking for the first quarter of 2008. The average new rent prices in these cities range between €11.25/sqm and €8.53/sqm. In two out of three major German cities, the average new rent price is below €6/sqm. In every fourth major city, an average of €6 to €8/sqm is being asked. The lowest cost major cities for tenants, with prices around €4/sqm, are now Plauen, Pirmasens and Hof. The average purchase price asked for an apartment is below €1,000/sqm in one out of eight major cities. In more than one half (56%), an average of €1,000 to €1,500/sqm is being charged. In 31% of the major cities, however, the sellers are demanding more than €1,500/sqm. In the eight most expensive markets–—here, too, led by Munich, and followed by Heidelberg—, more than €2,000/sqm must be paid. Zwickau, Pirmasens and Plauen are currently the most favorable towns for bargain seekers, with prices below €700/sqm.
Dawnay, Day: Light industrial property acquired in Düsseldorf
The Becker & Kries Familienstiftung (Family Foundation), seated in Berlin, has sold a light industrial property in Düsseldorf's Holthausen district to the Day Sirius Fund, a real estate company belonging to Dawnay, Day. The industrial, office and logistics property has approximately 22,000 sqm of lettable useful area, as well as nine commercial units. The principle tenant is Polo Motorradservices. The object was built around 1950 on a plot measuring some 36,000 sqm. The parties involved have decided to make no comment on the purchase price. Winters & Hirsch was commissioned by the seller to market the property, and during the transaction it was the exclusive advisor and broker for the purchaser.
Kiel: Groundbreaking ceremony for “Germania-Arkaden” office and commercial building
On the Hörnufer in Kiel, the groundbreaking ceremony was held for the “Germania-Arkaden” office and commercial complex. A three-part complex with seven floors and a ten-story central tower is planned, including approximately 6,580 sqm of office space. The ground floor is reserved for retail use. The project is being carried out by BPB Bauträger-, Projektentwicklungs- und Bauerschließungsgesellschaft mbH based in Hamburg, and by a Danish investors’ conglomerate led by Moller & Company from Aarhus. The investment volume runs to some €15mn. Peter Plambeck, the Business Manager of GVI-Immobilien GmbH, which is responsible for rentals, told the daily newspaper Kieler Nachrichten that at the moment, 2,000 sqm of office space have been reserved by tenants.