News from 06/18/2008
Berlin: Topping-out ceremony for shopping center at Tempelhofer Hafen
The topping-out ceremony will be celebrated shortly for the shopping and leisure center at Tempelhofer Hafen in Berlin. The project is being developed by HLG Projektmanagement GmbH, based in Münster and Berlin, and Düsseldorf's IKB Deutsche Industriebank AG in a joint venture. On a total area of 30,000 sqm, four buildings with 35,000 sqm of usable area are being constructed. Some 70 store units are to be placed on 19,500 sqm of retail space. The investment sum for the project is quoted at €100mn. According to Christian Diesen, Business Manager of the property company, 90% of the lettable area has already been signed for. Among the retail tenants are Edeka (4,000 sqm), C&A, Hennes & Mauritz, Intersport, New Yorker, Douglas, Christ and Hussel.
Deka Immobilien: Office building in London acquired for €100mn
Deka Immobilien GmbH has invested again in London: for approximately £80mn (around €100mn), the firm acquired the "Old Jewry" office and commercial building for its open mutual property fund Deka-ImmobilienEuropa. The nine-story building was developed by Standard Life Investments and completed in February, 2008. This is Deka Immobilien's second investment in London this year. After a three-year interruption, the company had first renewed its activity on the British capital's market in March, with the acquisition of an office building for some £113mn.
UK: Germans strongest foreign investor group
German investors have attained a 19% share of the the British property investment market during this year's first five months, thus becoming the most important foreign group of investors. Jones Lang LaSalle (JLL) quotes the transaction volume with German participation during the current year in Central London alone at €878mn, surpassing the €670mn volume of the entire past year. The reason for the heightened involvement of the German investors is the sharp increase in yields, which have risen by up to 150 basis points since the outbreak of the financial crisis. Meanwhile, the prime yields in the City of London have reached 5.75%, according to JLL. "There are even cases in which 6% have already been reached again," remarks Sebastian Woitas, JLL's representative responsible for German investors in the U.K.
Duisburg: Construction to commence for "H2-Office" in Innenhafen
ORCO Germany S.A. is going to start construction work with the groundbreaking ceremony for the second stage of the "H2-Office" in the Innenhafen in Duisburg this Friday. Within 18 months, a building with 10,500 sqm of office space and 2,000 sqm for special usage is to be constructed on Schifferstrasse. The investment volume amounts to approximately €30mn. With the completion of the office building, ORCO Germany says, the last vacant lot in the inland harbor will be occupied.
Ideenkapital: Valad fund invests AUD109.7mn in Brisbane
The Valad Core Plus Fund managed by Valad has acquired a building complex in the inner city of Brisbane for approximately AUD109,7mn. The property fund IK Australia Core +, issued by the Düsseldorf-based fund initiator Ideenkapital, holds a share in the Valad Fund. The complex acquired consists of three objects situated in the Queen Street Mall pedestrian zone with a total of some 10,200 sqm of retail and office space. According to Ideenkapital, the objects have a high value increase potential. The Valad Core Plus Fund is investing via two so-called stapled unit trusts in both core and value-add properties. Ideenkapital reports the fund's performance to be "far above the forecasts made by the investment manager Valad." For the IK Australia Core + fund, Ideenkapital wants to raise €58.4mn of equity plus 5% agio, yielding a fund volume of AUD61.32mn.
Hamburg: Speculations on future of Hapag-Lloyd properties
The travel concern TUI wants to grant potential buyers of the Hapag-Lloyd shipping company the option of not taking over the company's two properties in Hamburg, reports the daily newspaper Financial Times Deutschland quoting company circles. The properties concerned are the Hapag-Lloyd headquarters on Ballindamm and a further administration building. This makes it possible to dissolve Hapag-Lloyd's Hamburg location after a takeover. In the course of the week, the sales prospectus is to be delivered to all the possible customers. Among them are foreign shipping companies such as the Asian company Neptune Orient Lines and the Danish firm Maersk. A German bidder consortium consisting of Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH (HGV), Kühne Holding AG and the banking house M.M. Warburg intends to keep Hapag-Lloyd in Hamburg.
Bremerhaven: Construction to commence for second hall in Europa-Center logistics park
Hamburg-based Europa-Center Immobiliengruppe plans to start the second construction stage in the Europa-Center logistics park before the end of the month. A logistics hall measuring 18,000 sqm is projected, 8,000 sqm of which are already rented to Benthin GmbH. The completion of the hall is scheduled for the fourth quarter of 2008. All in all, up to eight logistics halls are planned on the 32 hectare area in immediate proximity to the Bremerhaven container terminal, the former Carl Schurz Barracks. Commencement of construction for the third hall with some 30,000 sqm of distribution area is slated for 2009. The first hall was opened in April of this year. The tenant of this object with an area of around 20,000 sqm is Volkswagen's logistics service provider Schnellecke Group AG. AMB Property Corporation, an investor and developer of logistics properties, had acquired this hall back in October, 2007.