News from 07/16/2008
Stuttgart: Agreement on €270mn “Da Vinci” project
Realization of the “Da Vinci” government and commercial development in the center of Stuttgart is nearing: Governor Günther Oettinger and Minister of Finance Willi Stächele announced that the government of the State of Baden-Württemberg will establish a joint project company with the Breuninger fashion chain to expedite the project. Not only will three ministries of the Federal State be located on the Karlsplatz, but also a five-star hotel with at least 120 rooms as well as high-quality retail and gastronomy space. An architectural competition for the project is to be launched in 2009. Commencement of construction is slated for 2011, completion for 2013. The cost of the project according to current plans, including land acquisition, is estimated at around €270mn. Oettinger and Stächele declared, “Together, the State and Breuninger want to now speedily complete the necessary tests during the second half of 2008 and to coordinate with the city.”
Listed property companies: Polis, Fair Value and Alstria have greatest transparency
An analysis undertaken by Feri Rating & Research, which put the transparency of German, Austrian and Swiss property corporations under scrutiny, has come to the conclusion that listed property corporations (property AGs) are characterized by inadequate transparency and give insufficient information on property inventory. On the average, they reach a transparency mark of only 35%. The principle criterion for the calculated degree of transparency was the information contained in each company's business report on the value of held property. The most transparent German firms are reported to be two commercial property AGs, Polis and Fair Value Reit, at 72% and 67%. Alstria Office reaches third place with 53%. IVG, Germany’s biggest property AG, scored 46 points, thus occupying seventh place. At 18% and 15%, GBWAG and Dibag Industriebau trail down at the end of the list. The open funds show much more transparency, attaining an average transparency mark of 62%.
Stuttgart: Hochtief plans new 18,000 sqm office and commercial building
Hochtief Projektentwicklung GmbH has acquired an office building from the WGV insurance group in southern Stuttgart. The object at Paulinenbrücke is to be demolished and replaced by a new building with approximately 18,000 sqm of office and retail space. In an interview with THOMAS DAILY, the company confirmed a report to this effect published in Immobilienbrief Stuttgart. Further details regarding the project are to be announced during the coming week.
Investment market: In comparison, German investors are somewhat less pessimistic
Under the influence of the international financial market crisis ongoing since fall, 2007, the climate for property investment in Europe has dimmed still further. In Germany, France and Great Britain, the investment climate index ratings put out semi-annually by Union Investment fell again by three to five points compared to the index compiled in the autumn of 2007. Among British property investors, 44% believe that the nadir has not yet been reached. The mood of German investors is somewhat more confident: 43% want to heighten their property investments in comparison with last year’s—some of them even substantially. About 45% say they have further developed their existing risk management systems; 35% were induced by the financial crisis to implement new risk management systems. While 88% of the British investors have already undertaken modifications of their present investment strategies, only 60% of the German property investors feel a need to make adjustments.
Cologne: Aurelis preparing sites for new office buildings
Demolition work has begun on the approximately 50,000 sqm freight transportation area on the Deutzer Feld in Cologne. The owner of the area on Gummersbacher Strasse is Aurelis Real Estate GmbH & Co. KG. Demolition of the former freight dispatching hall and an industrial building is to begin immediately with completion of the work slated for the end of August. Up to four sites for office buildings can be developed there and a gross floor space of up to 95,000 sqm is possible. Aurelis reports that negotiations are being conducted with potential investors. The locations have a direct connection both to the A 3 autobahn and to public transportation via the ICE station at Cologne-Deutz and the future commuter railway station Deutzer Feld. A legally binding zoning plan has already been issued.
ECE: €300mn development concept for Kiel’s historic center
Hamburgbased ECE has presented a development concept for Kiel’s historical old city. Its essential building blocks are the new Philharmonic Hall on the Kiel Fjord, the connection of the historic center to the shoreline, the formation of a northern city gate in the shape of a five-star hotel with an adjoining convention center, and a 27,000 sqm shopping gallery. The planned old city quarter comprises a total area of approximately 50,000 sqm; the total investment volume is estimated at over €300mn. The project aims to upgrade the area northeast of the Alter Markt, or Old Marketplace, connect the old city with the city center, and facilitate experiencing the waterfront district. ECE worked out the concept together with Kiel’s urban planning office Nagel Architekten, announcing that an architectural competition is projected. If the city supports the project financially, ECE said construction could begin in 2010.
Regensburg: LBBW sells 397 Ganghofer Siedlung units
LBBW Immobilien GmbH is divesting itself of more apartments in Regensburg. Within the framework of a tranche contract, a total of 397 apartments in the Ganghofer-Siedlung (Settlement) were sold, the newspaper Mittelbayerische Zeitung reported. The buyers are Die Grüne Mitte GmbH in Regensburg, Winter Hausbau GmbH in Straubing and the Eukia group. Initially, in the next two to three years,the companies want to renovate 127 apartments with approximately 7,000 sqm of living space. The investment volume for this stage was quoted at some €19mn. LBBW already sold 360 apartments to Die Grüne Mitte back in October, 2007. The Ganghofer settlement is a former factory worker's village built by the Messerschmitt airplane company. The residential area, built in the 1930’s, consists of a total of about 900 units.