News from 05/26/2008
RREEF: Construction projects in Romania acquired for €341mn
The Deutsche Bank subsidiary RREEF has acquired real estate projects in Bucharest for approximately €341mn. The forward purchase deal comprises two office and two residential projects with a total area of some 410,000 sqm (including parking and storage space) in the northern Bucharest Pipera district. Project developer Ioannis Papalekas will retain a 22% share in the properties. RREEF was advised during the transaction by Nestor Nestor Diculescu Kingston Petersen (NNDKP).
Berlin: German-Irish consortium for large-scale project at BBI
A German-Irish consortium wants to develop an office, retail, hotel and residential project near the future Berlin-Brandenburg International Airport (BBI) in Schönefeld. The consortium consists of Munich-based Investa Projektentwicklungs- und Verwaltungs GmbH, the Irish investors Ulick and Des McEvaddy, as well as Farrell Grant Sparks. According to Irish media reports, the investors estimate the value of the completed development at €800mn. Groundbreaking on the 86-acre site is scheduled for 2009 followed by a projected nine-year construction period.
Deka Immobilien: Two logistics properties acquired in Hamburg for €43mn
Deka Immobilien has acquired two logistics complexes in the Billbrook industrial area in Hamburg. The purchase price is €43mn. The seller was Hamburg merchant Achim Becker, the owner of the coin dealer Emporium. The logistics objects on Andreas-Meyer-Strasse and Werner-Siemens-Strasse have a total of 45,000 sqm of usable area, of which 19,000 sqm are new; there is also 1,800 sqm of office space. The objects are completely rented long-term to two logistics enterprises and were purchased for an open-ended special property fund issued by Deka Immobilien Investment.
Stuttgart region: Hansteen acquires production and office object in Wurmlingen
The British investor Hansteen Holdings Plc. has acquired a production, office and storage complex together with its plot in Wurmlingen near Stuttgart. The complex has 10,000 sqm of usable area, the site is 14,700 sqm. The broker for the transaction was the Berlin branch of the Angermann Group. Legal consultation was provided by the law office Jones Day in Frankfurt. It was agreed that no comment would be made with regard to the purchase price.
CEE: Investment market grew in 2007 despite credit crisis
The investment market for office properties in Central and Eastern Europe grew last year despite the credit crisis. The study Office Markets CEE, compiled by Pricewaterhouse Coopers for 2007, shows that investment rose by 11.8% to €14.2bn last year and says, this trend will continue in 2008. A downward tendency in yields correlates with investment growth: only in Sofia, Bucharest and Moscow were yields still reaching more than 6% followed by Vienna, Budapest, Bratislava, Warsaw and Prague at 5% to 6%. Rents remained steady in most of these cities. For Moscow, the authors of the study expected that office rent will rise sharply in 2008. Inner city office space now under construction has already been rented.