News from 07/22/2008
Berlin: TLG plans 27,500 sqm hotel and office building
TLG Immobilien GmbH plans to develop a hotel and office building near Alexanderplatz in Berlin. A building with approximately 27,500 sqm of lettable area is projected for a lot measuring some 4,800 sqm at Karl-Liebknecht-Strasse 32. Nalbach + Nalbach Architekten in Berlin won a competition organized by TLG for the facade. Planning for the project has already been going on for a number of years. TLG was unable to find a tenant for the old, GDR period building that formerly stood on the area so the firm had it demolished in 2006. Since then, the lot has been used for parking.
Construction industry: Orders dropped 7% in May
The Federal Statistical Office (Destatis) reported that, after adjustment for inflation, the value of orders received by the construction industry in Germany was 7% less than in the same month a year ago. Specifically, demand for building construction fell by 11.7%; for civil and underground engineering, it sank by 2.0%. The month's total turnover ran to around €6.9mn (+3.2% compared to May, 2007). From January until May, 2008, the value of incoming orders, corrected for inflation, decreased by 0.7% compared to the same period in the prior year. Total turnover ran to about €29bn, 7.7% higher than the level of the first five months of 2007.
Commerz Real: Open fund acquires office building for €124mn
After several years of restraint, Commerz Real is again investing in the London property market. The firm acquires “Athene Place,” an office object in the Midtown district of London for its open property fund hausInvest europa. The total investment volume for the 13,775 sqm of lettable area amounts to approximately €124mn.
Meinl European Land: Sale to Gazit Group finalized
The €800mn sale of the property firm MEL Meinl European Land, registered in Jersey, by Meinl Bank, Austria, to Gazit Globe Group, Israel, is now practically complete. On July 16, the necessary resolutions were passed by majorities of more than two thirds at the shareholders’ meeting on the island in the English Channel. As soon as the change in principal ownership has been formally implemented, MEL will change its name to Atrium European Real Estate. According to the announcement, the parties concerned are targeting a closure of the transaction by the end of the month. The new main shareholders will be Gazit Globe and CPI Capital Partners Europe LP, a property fund issued by Citibank.
Freiburg: Aurelis launches development of former freight station area
With conversion of the old customs house now underway by Aurelis Real Estate, the the starting shot has been fired in Freiburg to re-develop the 40 hectare northern railroad freight yard. Aurelis wants to invest approximately €10mn in the historic building to create a total of 2,000 sqm for offices, 2,220 sqm for fitness and wellness, as well as 4,200 sqm for multiple use. Alice Bühren, Aurelis’ director of the southern region, said that stringent directives issued by the Monument Protection Authority must be heeded during the work. This refurbishment of a fine example of architecture should signal a first, upbeat note to Aurelis’ further development of the former freight yard measuring some 330,000 sqm. Aurelis’ CEO Joachim Wieland commented that, “A situation like the one in Freiburg is an opportunity for us. We have an attractive property and potential tenants who like the location, but who place high demands on the property. In this situation, a focus on investment in our objects, and then on provision of planning security for everyone concerned by means of long-term leasing contracts, is a real win-win situation.”
Lloyd Fonds: Two closed-end foreign funds planned
Lloyds Fonds AG is thinking of issuing a closed-end North America fund. It also has plans for another Netherlands fund. Hanno Weiß, the director of Lloyd Fonds Real Estate Management GmbH, let it be known in advance to THOMAS DAILY that, “If we carry out the North America fund, it would probably invest in an office, retail and entertainment complex in a metropolis with more than a million inhabitants.” For the Netherlands fund, as for its two predecessors, investments in office properties are planned. In Germany, though, the Hamburg issuing house is focused on further hotel funds. In early September, a fund to invest in two budget design hotels belonging to the brand Motel One will be placed on the market. In August, marketing will be launched for a fund that holds a four-star-superior sports and wellness hotel in Fleesensee in its portfolio.