News from 12/17/2008
DIC Asset: Properties sold for €36mn
DIC Asset AG has sold a number of properties for a total of €36mn. The largest of them was the Pfleiderer AG headquarters in Neumarkt, Bavaria, which DIC acquired in 2005. The administration building, designed by Hadi Teherani and providing 9,500 sqm of office space, was purchased by an individual investor. Five smaller office buildings in Berlin, in locations such as Teltower Damm, Mariendorfer Damm and Golzstrasse, were also sold and also to an individual investor. Furthermore, DIC divested itself of a big self-service store near Paderborn, the buyer of which was an institutional investor. The Pfleiderer and Paderborn transactions were handled by the brokerage house Brockhoff & Partner; the brokerage house Engel & Völkers advised during the sale in Berlin.
Open-end funds: Scope sees the big eight as well positioned
During the past few weeks, the open-end funds have also gotten into trouble. In October, eleven of them suspended redemption of their certificates, one fund is reporting negative earnings, and the BaFin federal authority for the control of finance services is threatening compulsory measures to force fulfillment of distribution plans despite the closure. In a preliminary check-up, the Scope Analysis rating agency has placed the eight biggest funds under scrutiny: Deka-ImmobilienEuropa, CS Euroreal, SEB ImmoInvest, UniImmo: Europa, UniImmo: Deutschland, KanAm grundinvest, hausInvest europa and AXA Immoselect. Almost all of the funds studied invest to a great extent—with variations—in Germany, which Scope evaluates as a positive thanks to the relatively low volatility of the German market. The principle investment markets other than Germany are France, Great Britain and Benelux. Italy, Spain, Austria and Eastern Europe, as well as Asia and America, are represented, but mainly with comparatively small shares. The analysts see the portfolios of Deka-ImmobilienEuropa, hausInvest europa and AXA Immoselect as regionally well-balanced. Compared to the norm within all the German property funds, no critical lack of diversification with regard to financial exposure was discovered. According to the report, SEB ImmoInvest, UniImmo: Europa and hausInvest Europa are especially well diversified with regard to their mix of tenants.
Hamburg region: €24mn urban quarter launched
By putting up a construction sign, the Gazit concern has launched the building of a residential and commercial center at Kaltenkirchen Station. Four new buildings with approximately 10,000 sqm of lettable space on an site measuring 1.8 hectares are to be completed by Easter of 2010. The investment volume for the project called “Quartier 4” runs to some €24mn. According to media reports, Gazit’s CEO Maria Koopmann said that of the 25 planned stores, 70% are already rented. The tenants are, among others, the chains Penny-Markt, KiK, Sky, Budnikowsky and Reno. Also planned are 18 town apartments, 14 doctors’ and other offices and 270 parking spots. At the moment, a call for bids for site preparation is still in effect. The foundation work is to start in January; the laying of the cornerstone is slated for March.
Immac: German fund announced, Austrian fund placed
The fund initiator Immac Immobilienfonds GmbH, seated in Rendsburg near Hamburg, has announced another nursing home fund, Immac Pflegezentren Baden-Württemberg Renditefonds GmbH & Co. KG, which is investing in two nursing homes in Sinsheim and Bad Überkingen. Immac quoted the total investment volume of this fund at €12mn, 50% of which is to be raised as equity and predicted the initial rate of return at 6.3% annually; the lifetime is to be 15 years. Participation is possible with a minimum of €20,000 plus agio. Immac also announced the complete placement of its first Austrian fund, saying that approximately €9mn in equity were raised for the Immac Pflegezentren Austria I Renditefonds since placement began on November 10, 2008. The fund was thus oversubscribed by 30% within a short period. The total investment volume of Austria I, which holds a nursing home near Graz, runs to €18.4mn, of which around €7.4mn, or 40%, is said to have been raised as equity.
Deutsche Wohnen: 631 apartments sold in Hanau for €12.5mn
Deutsche Wohnen AG has sold 631 apartments in Hanau to REIP Holding S.à.r.l., seated in Luxembourg. The seller quoted the value of the portfolio comprising some 32,000 sqm at more than €12.5mn—a factor of 10 with reference to current rent. The sale was said to have led to a book loss of less than 5%. REIP Holding will perform a comprehensive renovation of the apartments, most of which are landmarked and under ensemble protection. The transaction was brokered and advised by Engel & Völkers GmbH for Deutsche Wohnen and by Degen Unternehmensberatung, Cologne, for REIP Holding. The sale in Hanau is a part of the portfolio adjustment being conducted by Deutsche Wohnen AG. Earlier, it soldapartments from the 50.000 units portfolio in Münster (Westphalia) and Bobingen near Augsburg. REIP Holding, on the other hand, announced that it has already acquired more than 1,700 apartments in North Rhine-Westphalia this year, and intends to expand its inventory still further.
Frankfurt: 6,000 sqm of office space rented out in “Opernturm”
Tishman Speyer has rented out another four floors in its large-scale Frankfurt project called “Opernturm”. Three stories, totaling 4,500 sqm, are going to be used by the Frankfurt office of the international law firm Ashurst. Nai Apollo acted as the broker. A lease for 1,500 sqm was agreed to by Excellent Business Centers GmbH. Together with the leases signed by UBS Deutschland AG and Morgan Lewis & Bockius, an occupancy rate of over 60% has thus already been attained, an entire year before the “Opernturm” is finished. After completion, scheduled for the end of 2009, the 170 m tall office tower is to have 42 floors and 62,500 sqm of office space.
Munich: Rents for apartments climb by up to 9.1%
According to a market report compiled by IVD Süd, rent prices for residential properties in Munich shot up this year. The sharpest price increases were recorded in apartments built since 1950: while €11.50/sqm were paid last year, €12/sqm are now necessary—a 9.1% price hike. Prices for apartments in older buildings climbed by 8.3%, to €13/sqm. For central town houses with 100 sqm of living space, typical monthly rents are €1.530—5.5% more than last year. New apartments were 4% more expensive, at €13/sqm. One of the reasons for these price increases is said to be the sustained stagnation in the development of new construction projects: in 2007, a total of 4,498 construction permits were issued in all of Munich, 12.9% fewer than in 1997. Across Bavaria, rent prices were stable or declined slightly compared to last year, ranging from -1.0% for newly built town houses to +1.3% for existing apartments.