Investing in Germany 2010

Foreign investors have pumped largesums of money into the German realestate market – to the detriment ofbankers and other investors and tothe benefit of German real estateexperts. They’ve made a good profitand learned a lot. Thrilled to bits,they’re expecting the next wave ofcash from abroad.

There’s a joke going round Frank-furt’s real estate scene: When a foreigninvestor visits a Frankfurt developer,the first one has got the money andthe other the experience. By thetime the investor bids farewell, it’sthe other way round.

“We want our moneyback,” says not only theRoyal Bank of Scotlandwhich co-financedMorgan Stanley’sfrantic shopping in Germany. The German propertymarket is threate-ning to become amulti-million landfill foropportunistic hotel investors as muchas for the new owners of the Hertiedepartment stores or the financers ofthe Level One housing trust who bitoff more than they could chew inBerlin. Continued on page 3

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SPECIAL EDITION MIPIM 2010March 2010

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FOREIGN INVESTORS IN GERMANY

„We want our money back“

MIPIM Awards 2010

VOTE FOR KAMEHA GRAND BONN

www.bonnvisio.comVisit us on stand Riviera Hall R 31.02

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Morgan Stanley thought their Japanese recipe forsuccess would work in Germany, too. But they’ve had to think again.

Page 25

Mipim Awards 2010: Three German projectscompete for Victory.

Pages 12 and 14PHO

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You will find all the companiesmentioned on page 2.

THIS ISSUE

Brits, Americans, Israelis,Scandinavians – they’ve allcome to Germany to make aprofit with real estate. We

show you the winners and thelosers. What’s more, look inside to find out why you

should continue to invest inGermany today.

VisitImmobilien Zeitungat Stand R 32.31

Thursday 11 March 2010

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The companies mentionedAareal Bank 8

Aberdeen 6

Activum SG 11

AEW 21

Allianz Immobilien 12

Alstria 30

AM alpha 21

Ameos 8

Angermann 28

Arab Investment 16

Archit. Karl-Heinz-Schommer 12, 14

Architektenbüro Max Dudler 12, 14

Argoneo 3

Bank of America 16

Bank of Ireland 16

Barclays 8

Baubecon 30

BayernLB 16

Behnisch Architekten 12, 14

BIC 31

Biq Standortentwicklung 19

Blackstone 25

BNP Paribas Real Estate 3, 11

BonnViseo 12, 14

Brau und Brunnen 31

BSGP 30

Bulwien Gesa 17

BXR 20

Calyon 16

Canda Invest 4

Capmark 8

Carlyle 3, 6, 29

Castellum 26

CB Richard Ellis 21, 29

Cerberus 17, 25, 30

Cevdet Caner 17

Christoph Mäckler Architekten 31

Citibank 3

Clifford Chance 3

Colliers Property Partner 28

Colliers Schauer & Schöll 21

Commerzbank 6

Credit Suisse 16

Cushman & Wakefield 3, 18

Dahler & Company 12, 14

Dawnay, Day 3

DC Residential 12, 14

DCP 27

Degi 6, 30

Deka Fonds 30

Deka Immobilien 21

Deutsche Annington 17, 24

Deutsche Bank 3

Deutsche Land 30

Deutsche Wohnen 17, 30

Develica Deutschland 30

Development Partner 12

DG Hyp 16

DIC 11

Dr. Ebertz & Partner 31

Dresdner Bank 6

DS Baukonzept 26

DWI Grundbesitz 26

Ellwanger & Geiger 28

Engel & Völkers 22

Euro Ejendomme 8

Fair Value 30

Fattal Group 23

FGH Bank 16

Foncière des Régions 30

Fortress 30

FPS 19

Frank Müller Immobilien 20

Fürst Developments 28

Gagfah 30

Garbe Group 27

Gazit 10

Gehag 17, 30

Gewerbesiedlungs-Gesellschaft 24

Goldmann Sachs 16, 17, 18, 21

Grand City Hotels 3, 23

Griffin 20

GSW 17, 30

Hamborner 30

Harvest United Enterprise 31

Herkules 20

Hilton 31

Hochtief Projektentwicklung 12, 14

HSH Nordbank 12

Hypo Investmentbank 16

Icade 21, 29

IFM 12, 14

Immeo 30

Immobilien Zeitung 4, 12

IMW 17

Jones Lang LaSalle18, 20, 21, 23, 28

JP Morgan 16

KBC Bank 16

King-Kamehamea-Gruppe 14

Kondor Wessels 22

KWL 27

Leonardo 23

Level One 1, 3, 17

Licon-Group 24

Macquarie Office Trust 11

Marland 10

Merrill Lynch 16

Moore Capital Management 19

Morgan Stanley 1, 3, 6, 11, 16, 18,21, 24, 25, 30

Natixis 8, 16

NIBC Bank 16

Nokia 22

Nordea 26

Norrporten 26

Oaktree 17, 30

Orco Germany 24

Pandox 26

Patrizia Projektentwicklung 12

Pirelli 30

PKF hotelexperts 23

Precise Hotel Collection 23

Prima 17

Prudential 6

Puma Brandenburg 30

Quantum 11

Rabobank 16

Raiffeisen evolution 14

Reed Midem 12

Resolution Property 18

Rockpoint 3, 4

Royal Bank of Scotland 1, 25

Rreef 30

SBRE/triple iii 27

SDRB/GOMB 14

Securum 26

Sjælsø Danmark 14

SNS Bank 16

STIV/MIVB 14

Sunrise Senior Living 8

SVP 10

Swan Operations 31

Sybil Group 19

Terra 17

Thelen-Holding 22

TMW 6

Tower Group 20

Trans Arab Support Services 31

Treveria 3, 30

UBS 16

Union Investment Real Estate 25

UOL-Group 14

Valartis Asset Management 8

Vasakronen 26

Vattenfall 19

Viterra 24

Warimpex 14

Westbrook 18

Whitehall 17, 30

www.baywobau.de

Tel 0049-89-286 50 101 Fax 0049-89-286 50 100Baywobau Baubetreuung GmbH . Geyerstraße 32 . 80469 München . [email protected]

TOP-Standorte für Ihre ImmobilieninvestitionSchlosshotel in Dresden

am Schloss und Frauenkirche/Neumarkt

München-MaxvorstadtHier entsteht derzeit Münchens größtes innerstädtischesWohn-Ensemble

Eigentumswohnungen, Mietwohnungen, als Investitionsobjekt einzelne Häu-ser, daher Größenordnung flexibel, namhafte Architekten, hochattraktiveInnenhofgestaltung, Baubeginn (Baugrubensicherung) ab Ende 2009, Fertig-stellung ab 2011.Mieterwartung von 5 13,– bis 5 25,–, Kaufpreise von 5 4.100,– bis 5 10.000,–Investitionssumme für einzelne (Miet-) Häuser von 5 5 Mio. bis 5 9,5 Mio.Kontakt: Dipl.-Kfm. Alexander Hofmann, Tel. 089-28 65 00

Baufeld A (Teilquartier VIII.1): 235 Zimmer und Nebenflächen, Wellness, Gastronomie, verpachtet an die International-Schweizerische HotelgruppeSwissôtel (auch in Süd- und Nordamerika, Asien ...)18 Ladengeschäfte und Restaurants (keine Büros!) – Gesamtnutzfläche fast14.000 m2, Einnahmen (4. Betriebsjahr) rd. 5 4,312 Mio., Kaufpreis 5 77,85 Mio.Vorbereitende Bauarbeiten (Archäologie, Baugrubensicherung) Herbst 2009 –Baubeginn März 2010 – Fertigstellung 2 Jahre.Kontakt: Dipl.-Ing. B. Dietze, Tel. 0351-87 60 30

Einmalige Destination nicht nur in Dresden, sondern in ganz Deutschland(neben Schloss und Frauenkirche: Brühl'sche Terrasse mit Albertinum,Akademie, Hofkirche, Semperoper, Sempergalerie, Zwinger)

NY.LIVING in den Nymphenburger Innenhöfen ◆ U-Bahnhof Stiglmaier-platz ◆ fußläufig zu Museumsviertel/Pinakotheken ◆ Propyläen und Königsplatz ◆ Karolinenplatz ◆ Maximilians- und Lenbachplatz.


COVER STORY CONTINUED

„We want our money back“

In the 1990s, London used to mockGerman open-ended funds. Today,Germans can’t help but laugh about“stupid foreign money”. They keep tel-ling stories about Americans who justhad to have concrete-slab buildings inBerlin-Hellersdorf or Russians whobought a hotel no-one else had wanted. Schadenfreude is in the air. HadBritish appraisers not joked about theGerman concept of “sustainable rents”that would remain the same for years?Today, they may wish they could applythe same method so they wouldn’thave to devalue to such an extent.

Hancock collecting his money

Saving capital invested in Germanreal estate has become a businessmodel. Chris Hancock, formerlyemployed by the financial investorDawnay, Day, as a manager, joined forces with three former German col-leagues to establish a company for thisvery purpose. Mr Hancock is workingon two major assignments – selling orletting the Hertie department stores onbehalf of Dawnay, Day’s liquidator, andselling part of a portfolio owned by theTreveria stock exchange vehicle which is

that selling prices will continue to drop,the company says. Since Q4, 2009investment turnover has re-emergedfrom rock bottom. By contrast, an archi-tectural firm specialising in retail says,“The market is dead.”

Since banks want to avoid valueadjustments, the overpriced propertiesbought in boom years are not put onthe market. One bank added an emptyoffice building in the Frankfurt bankingdistrict, for sale for 3.4 mn euros threeyears ago, to its books for no more than1.8 mn euros. Insolvency proceedingssuch as those that affected the LevelOne housing conglomerate (page 17)or the pullout of the Sunrise chainfrom the US which specialises in seniorcitizens’ residences (page 8) are a rareexception. “For the most part, we’re stilldealing with book value write-downs,not losses actually incurred. In a number of cases, equity has only disap -peared on paper,” comments Carlyle’sGerman Head Wulf Meinel on the status of many investments (page 6).

Opportunists on the doorstep

Experts predict that a major wave ofsales will not roll over Germany before2011/2012 when loans granted in2006/2007 expire. Those who canafford to will bide their time. Otherplayers have already felt under pres -sure. “I guess that ten to twelve oppor-tunistic funds are just around the corner,” says Dennis Boergel, invest-ment expert with Cushman & Wake-field, about the German retail market(page 18). They must have placed theirequity by mid-2011, otherwise it wouldbe re-transferred to their investors.Global players just can’t pass by Eur -ope’s largest national economy. Afterall, London is so expensive again.

Every cloud has a silver lining,though. Many foreigners are extremelysatisfied. Cooperation between the Berlin-based developer Klussmann andRockpoint from the US (page 4) is rather promising, the Grand CityHotels group from Israel is continuingto add hotels to its portfolio (page 23).

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For the German real estate industry,the cash tsunami from abroad hadbeen a godsend in any case – not onlybecause estate agents, developers,appraisers and fund managers haveaccumulated millions in profit. Inves -tors from the English-speaking worldtaught the Germans the property trade,

bringing along their know-how as anadditional asset. “We’ve learnt a greatdeal from British and American inves -tors,” says Cornelia Thaler, a partner inthe Clifford Chance law firm. “Thatapplies to many things that are stand -ard practice today such as due dili -gence, for example.” (cvs)

invested in German retail prop erties,on behalf of Deutsche Bank and Citi-bank. „For assets with long leases andgood tenant quality the appetite is there,“ says Hancock. „The investmentmarket however is being impacted bythe lack of available credit.“

No loan, no markets. The 2007 invest-ment bubble has burst, and there’s beensilence ever since. Is this the calm afteror before the storm? BNP Paribas RealEstate thinks that the downward trendfor real estate prices in Germany hascome to a halt. It’s a mistake to believe

“The largest company for commercial properties in Germany ...”

According to estimates, Morgan Stanley has invested 15bn euros in German real estate – with dubious success.James Lapushner, its chief buyer (see photo), who isleaving the bank in late March, has sent his friendsand colleagues a farewell letter. Here’s an excerpt:

„The last four years as the Head of German Real EstateInvesting have been the best four years of my profes sional career. Not only did I have the opportunityto build the largest commercial real estate company inGermany but I also helped create Argoneo, the largestand best in class asset management company in Germany. However, despite both of these great opportunities, the most rewarding part of my last four

years has come from working with and learningfrom the best team in the industry. As part of

my decision to leave Morgan Stanley, I will also be moving back to London...“(See also page 25)

„I want my money back“

This phrase was uttered by the UK’sformer Prime Minister Margaret That-cher. She used it to enforce a rebate onthe UK’s contributions to the EuropeanCommunity in 1984 (cvs)

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Investment in German buildings:

Multi-national money

© Immobilien Zeitung; source: BNP Paribas Real Estate

Investment volume in mn euros

Land 2007 2009Germany 24,571 12,064USA 18,436 301UK 14,283 253Luxembourg 2,252 105Austria 1,974 236Netherlands 1,766 133Italy 1,740 n. s.France 1,605 186Switzerland 1,570 482Denmark 1,408 69Israel 1,399 23Spain 1,048 126Other 2,826 25

Foreign money:

The peak year 2007

© Immobilien Zeitung; source: BulwienGesa

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200920082007200620052004

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There was a time when there seemed to be no better ideathan buying real estate in Germany. A Dutch BV will havethought along these lines, too, when they bought a few houses and plots in and near Frankfurt in late 2006/early2007, among them a mixed-use building at Luisenstrasse24, a charming old house incentral Wiesbaden.

However, something didn’twork out as expected. Asthings stood, times becameharder for the tenants of Lui-senstrasse 24. One day, thecleaning woman put up ahandwritten sign in the hallsaying, “Don’t be surprised ifit’s dirty from now on but if you don’t get paid you don’twork.” If you were expecting a guest, you had to clean thedirt off the stairs yourself now.

There was no caretaker any more either; the heating, liftand garage were not maintained any more. A stack of uglyplastic bags full of old paper piled up in the courtyard asnobody disposed of it any longer – until the office tenant’s

receptionist took over. Ever since, she’s dragged the bagsonto the doorstep once a week with her own hands.

What with all these measures, the tenants saved a fairamount of money because there was ample opportunity toabate the rent. However, they began to feel more and more

neglected because the land -lord was simply never avail -able to talk to them. He preferred no income from ser vice charges to respond -ing to the tenants’ objec-tions to the service chargebill. Attempts to contact theDutch company failed on aregular basis.

As a consequence, one large tenant is now consideringmaking a move, which would cost more but would also entail the possibility of having a caretaker again, and alandlord who answers the phone.

Wondering how we did our research for this piece? In thiscase, we only had a short distance to cover – the WiesbadenHQ of Immobilien Zeitung is at Luisenstrasse 24. (mol)


CENDA INVEST/ROCKPOINT

Using the year with a strong equity baseThe Berlin-based Cenda Group con-ducts opportunistic revitalisationprojects for a foreign investor. Andit has what many other partners ofprivate equity firms lack – highequity ratios and enough time.

Matthias Klussmann says he feels atease with his US partner. In summer2007, the US investment managers ofRockpoint, specialists in real estate,acquired a share of just under 25% inKlussmann’s Cenda Invest, a share -hold ing company that focuses on de -vel opment and asset management.Additionally, a joint holding companywas established for the purpose of buy-ing commercial properties; Rockpointowns 90% of this holding firm. As aresult, the lion’s share of any possiblereturn remains with the financing part-ner from America while the Germanservice providers have kept their busi -ness independent.

They have bought no more than twoproperties in Berlin since, and thosetwo aren’t very large. On the positiveside, however, these buildings aren’t

struck with the typical issues of otherprivate equity endeavours – they’re notin debt, nor has the business plan failed. The Ernst-Reuter-Haus (invest-ment volume: 45 mn euros) is going tobe fully let and its revitalisation com-pleted by the end of this year. Nobodyneeds to sell the building on very soon,says Matthias Klussmann. “The equityratio in this project is high and can bereduced by raising the loan share oncethe building is successfully let.”

An appetite for new deals

A more speculative approach wasapplied for the Rohrdamm property.The completely empty house that offersa “fabric as solid as a rock” on 10,000sqm of floor space was taken over fromSiemens for as little as 500 euros/sqm –“at that price, I didn’t even ask aboutthird-party capital.” The projectedinvestment volume totals 16 mn euros.Revitalisation measures will unlikely beinitiated before 2011 when a new tenantshould be found. According to Mr Kluss mann, this was another buildingwhere his company “sees no need to letspace below the belt. The highest risk is

How the Ernst-Reuter-Haus in Berlin will look after its revitalisation. Photo: Cenda

Matthias Klussmann persuaded his in -ves tor to conduct fewer projects thanplanned. Photo: Sabine Wenzel

that we won’t achieve the interest onequity we’re aiming at.”

In times of low loan-to-value ratiosand high credit margins, Klussmannbelieves opportunistic return rates canonly be reached through “hard, relent-less developing work” and by assuminghigher risks, e.g. by revitalising build -ings on stock. According to him, this isthe only way today’s funds can stillachieve their ambitious goals.

However, you won’t be able to handlelarge volumes like that. Serious devel -opers can only manage a limited num-ber of projects with their own capacities,says Matthias Klussmann. It’s a fact oflife with which the Berlin-based realestate expert squashed the hopes of hisprivate equity partner from the very out-set of their cooperation; back then,Rockpoint were dreaming of revitalisa -tion transactions on a major scale at aninterest rate of 25% p.a.

His 2010 recipe for the commercialproperty joint venture with Rockpointis “utmost caution” since he expects anaftermath to the recession year 2009.But doesn’t the economic crisis havesomething to offer for opportunisticbuyers? Mr Klussmann admits it does.

He doesn’t see a wave of emergencysales on the horizon for this year butpredicts the banks will “exit some dif-ficult financing options in a controlledmanner.” Therefore, Cenda has begunto feel an appetite for new deals, espe-

ANZEIGE

cially since Rockpoint have declaredthey intend to continue their Germanactivities. In this market, they are goingto stick to a strategy that focuses onequity. “Whenever banks quit theirproblems they will only negotiate withinvestors who can cover the total pricewith their own funds,” says Cenda’shead. “Bring money into a bank fromoutside and you’ll find open ears anddoors.” (mol)

The sad story of the mixed-usebuilding at Luisenstrasse 24

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OPEN-ENDED REAL ESTATE FUNDS

Parking one’s cash in a piggy bank“Stupid German money” used to be amocking phrase in the businessworld to say that these funds spentfar too much money on beautifulbuildings. Since international invest-ment managers began to set upopen-ended funds too, they’ve had tolearn even more: the “stupid money”may actually disappear before youcan even buy real estate for it.

Private investors in Germany haveput approx. 86 bn euros of assets intoopen-ended real estate funds. Giventhis figure, they are one of the mostimportant and solvent groups of buyersworldwide. Keen to secure them selves aslice of this lucrative cake, foreigninvestment managers made sev eralattempts to enter the German privateclient segment. The first firm to daresuch a move was TMW, a subsidiary ofthe US-based Prudential group thatoffers special funds; they establishedthe TMW World Fund in late 2004.TMW sales experts pinned high hopeson the fund’s “open architecture”, i.e.the willingness of banks to offer fundsother than their own.

Morgan Stanley followed suit in ear-ly 2005 by setting up their own Ger-man real estate KAG, a capital invest-ment firm. Like with TMW’s product,this open-ended fund (called P2 Value)

was sold through free agents, assetmanagers and over the counters ofbanks not owned by MS.

In order to generate large sales vol -umes, people liked to disinvest to largeinvestors and umbrella funds that seized the opportunity to park theircapital safely and at a reasonable inter -est rate. However, involving large in ves -tors proved to be a fatal step for thefunds after the Lehman Brothers’ bank-ruptcy – in panic, they withdrew somuch capital in October 2008 thatTMW and P2 Value ended up in a

Institutional investors used open-ended real estate funds to park their money. Whenthis led to the closure of funds, small-scale investors were denied access to their capi-tal. Photo: Fotolia.de/nem4a

financial bottleneck. Eventually, thesefunds had to be closed.

Morgan Stanley’s P2 Value hasremained so ever since. Industryexperts doubt if the fund will over -come this challenge unless propertiesare sold to unlock financial resourcesand additional shares are issued for aninjection of cash – in today’s marketsituation, open-ended funds that donot re-accept shares are considerednon-saleable.

Likewise, the British-Swedish Aber-deen Group thought it a clever idea to

head for German open-ended fundsand acquired Dresdner Bank’s Degisubsidiary for 110 mn euros, believingthey had clarified the sales issue byagreeing on a two-year contract withthe Dresdner-Commerzbank Group.

They were proven wrong. Commerz-bank soon shifted its focus and inten-sively marketed the two house-invest-ment funds it owned. Whereas thesefunds are afloat with liquidity today,Degi/Aberdeen have had to close onefund after another since autumn 2008as investors withdrew their money andno new cash came in.

For a short while, TMW had reasonto hope they had turned things aroundsuccessfully. TMW disinvested variousproperties, re-positioned itself as asustainability fund and was re-openedin December 2009. Allegedly, this newsustainability approach met withacclaim, especially on behalf of institu-tional investors. However, it was theseinvestors who let the fund down againas soon as they felt fit to do so. Of allfunds, a Degi fund triggered this event.The (closed) Degi Global Businessdepreciated its assets by as much as21% in February. As a consequence,institutional investors quit other fundsthat used to be open-ended – and loand behold, the World Fund was closed again. (mol)

International investors, dreaming ofa second German economic miracle,gave private equity fund managerstheir money in the hope of growingit by 25 percent per annum. All theyreceived in return was losses. Car -lyle’s German head, Wulf Meinel,tells us about the modest luck ofnot losing one’s capital and fundinvestors wading through a vale oftears.

IZ: Carlyle property funds have pursuedactivities on the German market since2002. During this time, have you ever rea-lised an exit where you achieved the noto-rious 25-percent IRR target?

Wulf Meinel: Yes, and it was actual-ly in Germany where Carlyle evenachieved the highest IRR ever.Nonetheless, that was a special case aswe acquired and re-sold a portfolio inthe nick of time. There’ve been otheroccasions where we sold a project andpartially disinvested a small propertyportfolio and reached as much as 25%.The year 2007 was especially good forlucrative exits. In order to realise suchvalues, you need a perfect combinationof timing, financing conditions, sub-stantial buyers’ liquidity – and luck!

IZ: Now it’s 2010, the credit bubble hasburst, ratings have hit rock bottom, and

WULF MEINEL TELLS THE TRUTH ABOUT PRIVATE EQUITY

“They pretended Germany was underrated”investors are disillusioned. What kind offeedback do you get when you talk to inves tors today?

Meinel: We have managed to main-tain our investors’ equity and couldclearly grow it on average during thepast eight years. Fund managers whoinvested in 2007/2008 and were at

least able not to lose their investors’money have become very popularamong investors in the current marketsituation.

IZ: How do investors see Germany’sdevelopment? Do they value the market’sstability or is that outweighed by theiranger because they burnt so much moneyin Europe’s largest national economy?

Meinel: I should think that thoseinvestors who were sold exclusivelyGerman funds back then are wadingthrough a deep vale of tears. This is byno means the result of Germany’sunattractiveness as a location forbusiness or due to any misinterpreta -tions by German consultants – in fact,it was the misleading assumptions ofinternational prophets that caused thedamage. By this, I mean managers whoentered our market when prices werevery high, earned their money mainlythrough acquisition fees and pretendedthat Germany was underrated.

IZ: So investors lost a fair amount ofmoney here, did they?

Meinel: Yes and no. For the timebeing, most of the losses incurred arebook value depreciations and not los-ses that were actually realised. In manycases, equity was simply taken off thesheet. Where this is so, banks are satis-fied as long as the owners still look

after their real estate and rents come inregularly to cover the interest rate, andthey’re not putting people under pres-sure.

IZ: With an opportunistic buying strat -egy, you’d have to put the whole amounton the counter in cash today as bankswon’t assume risks. Would this be an op -tion for the Carlyle funds in order toobtain interesting products?

Meinel: Equity is an alternative al -though this will always be restricted toindividual transactions. What you do isyou place a bet that you’ll manage tocomplete a project or a revitalisationmeasure so successfully that the prop -erty will be re-financed by the banklater on. In this case, equity helps youto finance future bank debt in advance,and you have to win this bet.

IZ: Speaking of banks, when will theloan providers in Germany eventually putmore real estate on the market so that theopportunists will have something to do?

Meinel: As a matter of fact, somebanks have begun to lead sales nego-tiations for selected problematic prop -erties. Surprisingly, however, thesenegotiations continue to move slowly– or at least I feel they do.

IZ: Thank you for this interview.Wulf Meinel was interviewed by

Monika Leykam.

Wulf Meinel is the German head of Car-lyle’s, a pan-European investment com-pany. Photo: mol

Treffen Sie die wichtigsten internationalen Experten rund um

die Finanzierung und Verwaltung von Immobilien. Hautnah, direkt

und persönlich auf der MIPIM 2010. Als einer der international

führenden Immobilenspezialisten mit Standorten in 19 Ländern auf

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Besuchen Sie uns an unserem Stand Espace Riviera/R29.07 und erleben Sie die Aareal Bank Gruppe live. Sprechen Sie mit

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informieren Sie sich über die Möglichkeiten der zeitgemäßen

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Nähe live erleben: Die ganze Welt auf 20.000 m2 in Cannes. Wir sehen uns!

MIPIM16.-19. März

2010

Aareal


INVESTING IN SOCIAL WELFARE PROPERTIES

Investors tackling hospitals and nursing homes

could acquire homes for 70 to 80 mneuros right now,” he says. Theoreticallysuitable property offers have reachedhis desk but Marc tends to be fussywhen it comes to eligibility criteria. Infact, he won’t accept a price higherthan 13.5 annual leases, he will onlyaccept private operators, and he willkeep his hands off any project in atown with a population below 50,000.

Valartis owns no more thanthree homes

The investment dynamics of theSwiss Valartis Asset Management Com-pany fall below expectations, too.Valartis set out in 2008 to buy Germannursing homes for up to 400 mn euroson behalf of institutional investorsfrom Switzerland. So far, Valartis havebought three homes. The Swiss believethat demographics speak in favour ofinvesting in German nursing homes.According to Valartis, the company hasnot achieved its goals because nursinghomes have not established themselvesas an asset class in Germany. To cor -

The Ameos Klinikum St. Salvator in Halberstadt, owned by Ameos, is one of 37 insti-tutions in the Swiss Ameos’ portfolio in Germany. Photo: Ameos

rob orate this verdict and to provide acomparison, Valartis refer to their hous ing fund in Berlin, which hasbeen fully invested for a long time.Their housing fund has put 300 mneuros into Berlin flats; the equity need -ed has been supplied by North Ameri-cans and Europeans.

Ameos focus on hospitals

Ameos, another Swiss player, has tar-geted a plethora of healthcare prop -erties. They are interested in hospitals,psychiatric clinics, nursing homes andother rehab institutions for psychiatricpatients. Since 2003, Ameos have usedfunds from pension schemes to acquire37 institutions across seven German states. They benefit from the privatisa -tion pressure in the German healthcareindustry – increasing numbers of clinicsformerly run by the public sector arebeing outsourced to private operators.In 2009, Ameos generated 390 mneuros of sales in Germany – and thatfigure is going up. (bb)

NURSING HOMES

Reality shock for Sunrise

Chic but unsuccessful – Sunrise retire-ment homes in Germany. Photo: bb

Sunrise Senior Living, a US-basednursing home operator, has failed tooffer a viable concept for Germany.The nine senior-citizen homes inthis country have been put up forsale, and they are likely to yield nomore than half the loan volumegranted by banks. Rumour has itthat the sale will only work if amark-down of 70 to 80% is applied.Therefore, it is unlikely that Sunrisewill ever see a single cent of its capital investment again.

Essentially, experts believe the Sun -rise debacle was due to the fact thatGerman OAPs expect more than a 25-square metre room for a monthly rentbetween 4,000 and 10,000 euros.Extensive open-plan areas that areapparently less valued by Germansthan by the American golden agers buthave to be paid for and high-qualityfurbishings make living in a Sunriseresidence a costly affair. Even in select -ed locations with a high share ofwealth, the idea just didn’t work.

The selling process is just as slow aswas the start-up phase for the Americancompany, which set foot on Germanterritory in 2002. Since May 2009, thehomes have been up for sale offi cial ly.After a prospective buyer from the USwithdrew in autumn 2009, negotia -tions have begun between the fourloan-providing banks including Natixis,Capmark, Barclays and the GermanAareal, and two possible buyers. Ontop, a host of potential oper ators seemto have signalled their inter est, too.

This nursing home for the elderly in Dortmund-Billede is a social welfare facility intowhich Danish money was invested. Photo: Euro Ejendomme

The selling negotiations have startedto drag as people think these prop -erties can only be operated profitably ifthey can be acquired for a song. Thebanks, however, are unwilling to acceptthis although the utilization rates inthese luxury-class homes are as low as50 to 60%. What with stagnatingdemand, two houses have already hadto be closed down. Sunrise had de -signed their properties for an averageof 20 mn euros apiece. The Americans’original intention was to build at least25 homes in Germany by 2010. (bb)

The projections for Germany’sdemographic development leave nodoubt – the proportion of over-65sis expected to rise substantially incoming decades. Therefore, investorshave begun to take an interest innursing homes and healthcare prop -erties. Besides domestic investors,the Scandinavians and the Swisshave started to make a commitmentin this segment. Like their Germancompetitors, however, most of themhave no illusions as far as the speedof such investment and the interestof capital providers is concerned.

“The expectations we’ve had havebeen more or less met,” says MarcThiel, head of the German branch of -fice of Euro Ejendomme, a Danishcompany. In other words, Herr Thiel (aBerlin native) has acquired nursinghomes in Germany for his Danishparent company and their Danish in -ves tors but not to the planned extent.The latest confirmed figure dates backto 2008, when he bought five prop -erties. Considering the order of magni-tude the Danes prefer, i.e. 80 to 160beds per property, the total investmentvolume is estimated at approx. 50 mneuros; the company itself hasn’t pub -lish ed any current figures.

Enough properties on offer

As things stand, the Danes have shift ed their focus. Since March 2009,Euro Ejendomme has had a fund forinstitutional investors in its portfolio,the Care Fund K/S, opened specific allyto invest in German nursing andhealthcare properties. Its target volumeamounts to 300 mn euros. To date, thefund has not bought anything sincenobody has confirmed their willing -ness to provide equity so far. Original-ly, this product was exclusively de -signed for Scandinavian investors.However, the company has begun tocontact potential investors from Ger-many and is likely to target the UK andthe Netherlands in its quest for capitalproviders willing to invest a minimumof 5 mn euros each. Marc Thiel knowsno shortage of real estate offers. “We

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FRANKFURT AND ITS SURROUNDINGS

The best-laid plans fall through

The redevelopment work at the Citypassage in Wiesbaden, planned by Markland foryears, has not even begun. Photo: law

Well-intended foreign investorsacquired a good few properties insome focal points of Frankfurt andthe cities around it, also known asthe “Rhine-Main Region” after thetwo rivers that confine it, quite awhile ago. To date, however, nothinghas ever happened there.

Take the Citypassage for example inthe pedestrian zone of Wiesbaden,Hesse’s capital city. This hopelesslyoutdated shopping centre with justabout 4,000 sqm of lettable space wasacquired by Markland, an Irish projectdeveloper, in 2005. Three years later,major refurbishment plans were pre-sented to the Immobilien Zeitung;were they put into practice, the retailarea would almost quadruple. And yet,today’s Citypassage looks no differentto before. Some rental agreements havealready been extended. Wiesbaden’sofficial head of the urban planningdepartment, Joachim Pös, actuallywent to visit Markland in Dublin lastyear to find out what the investors hadin mind. “In Ireland, I was told that

the retail market wasn’t yet mature forsuch a project,” says Wiesbaden’s plan-ner. However, further meetings hadbeen agreed on and the investors werestill interested. In the meantime, localauthorities have paved the way bygranting the permission for a revamp.

Americans are putting thingson hold

The Mauritiusgalerie, Wiesbaden’sailing patient, is situated in the Citypas-sage’s direct vicinity. This shopping mallbelongs to the SVP, a private equity firmfrom the US, and has been vacant foryears, possibly because of its slightlyremote location and because the mall’slayout is not very visitor- friendly. How -ever, it offers a potential for large-scaletenancy. The public library of Wies ba-den, for example, was interested in renting some space, which would havere- boosted the Galerie’s attractiveness,but the Americans didn’t seize theopportunity. “There’s not enough pres-sure to do anything,” says a project part-ner from the local authorities.

Whereas Markland and SVP are leav -ing their real estate portfolios un -changed, other companies disinvest.Large players in the property trade are

no exception – in fact, the Gazit Groupfrom Israel bid farewell to Friedrichs-dorf, a small town to the Northwest ofFrankfurt, in 2009. Continued on p. 11

ANZEIGE


Continued from p. 10The project developers had planned

the construction of a shopping centrewith 12,000 sqm of retail space on a4.4-hectare plot owned by the babyfood producers Milupa. Even beforethe ground-breaking ceremony, asmuch as 45% had been let. Gazit’sGerman MD, Amir Bernstein, said hiscompany’s project withdrawal, whichhad come as a surprise for the localauthorities, was due to a changed mar-ket environment in the aftermath ofthe financial crisis. At present, the auth orities are leading negotiationswith other prospective developers. Justa few hundred yards from the Milupaplot, Ten Brinke from the Netherlandsacquired a 15,500-sqm plot on whichthey intend to build residential prop -erties.

Even office projects are afflicted

The withdrawal strategy foreign inves -tors have pursued in many places hasn’tonly affected retail properties but alsooffice projects. Morgan Stanley, forexample, backed out of two large pro-jects in the Rhine-Main Region as afinancing partner: the Maintor quarterdevelopment by DIC on the Degussaplot in Frankfurt (approx. 100,000

sqm), which will now have to be carriedout by DIC in a solo effort, and theDern’sche Höfe project for offices andretail in Wiesbaden that has been re-transferred to the Quantum developersafter a long and exhausting tug-o-war.

According to BNP Paribas Real Estate’s property consultants, the pro-portion of foreign investors in Frank-furt fell from 45% to 8% on a YOYbasis. As far as sales are concerned,however, their share rose from 22.2%to 35.4%. Many investors have basedthe underlying decisions on theirintention to re-shift the portfolio focuson the home markets of these compa-nies, which held true for the sale of anoffice building at 108, DarmstädterLandstrasse that was sold by the Aus-tralian Macquarie Office Trust fund toa French investor for 39.5 mn euros.

And yet, the Rhine-Main propertymarket does have its foreign supporters.Saul Goldstein from the US, for ex -ample, bought an office block in Frank-furt last year through his company,Activum SG of Jersey, and intends toadd another one to his portfolio soon:“Hamburg and Munich are overpriced.By comparison, Frankfurt still offers fairprices.” Besides Frankfurt, Mr Goldsteinsays that Berlin, Hanover and Stuttgartare interesting locations for real estateinvestment. (law)

AN

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The Maintor quarter development on the Degussa plot in Frankfurt (approx. 100,000sqm) will now have to be carried out by DIC in a solo effort. Photo: DIC


The 15 nominees for the best prop -erty worldwide to receive a MipimAward include three German pro -jects – the Kameha Grand Hotel inBonn, the Romeo & Juliet officetowers in Frankfurt and the MarcoPolo Tower in Hamburg.

“And the Mipim Award goes to ...” –this phrase or a similar one will be spoken seven times in the Palais desFestivals on 18 March when the tradefair organisers, Reed Midem, present theMipim Awards, aka the “Oscars of thereal estate industry”, for the twentiethtime. Before the event the jury of seven,headed this year by the German chair-woman Bärbel Schomberg, formerdirector of Aberdeen Immobilien, has tocompile a shortlist on the basis of 80

gena, Mipim’s director, is pleased aboutthe award’s internationality – even pro-jects from China, South Korea and Indiaare competing for a trophy. It was by nomeans easy for the jury to select thenominees: “Al though our choice wasclear in the end, the lively discussionshowed how seriously the jurors takethe awards,” says Bärbel Schomberg.According to Max Crofts, jury memberand President of the Royal Institution ofChartered Surveyors, it was the widerange of criteria such as the originalityof the concept, the architecture and thetechnological and energy-related features of the prop erties that made iteasier to make up their minds.

Trophies within reach –in three categories

Three categories of the MipimAwards are interesting for Germany –the Romeo & Juliet office towers inFrankfurt, designed and built by theIFM project developers and Max Dud-ler’s architectural bureau, are compet -ing with other refurbished office build -ings. The Kameha Grand Hotel inBonn, built by the BonnVisio investorand the architects Karl-Heinz Schom-mer and Marcel Wanders, is nominatedin the hotels and tourism resorts cat -egory, whereas a residential tower blockin Hamburg, the Marco Polo Tower –jointly developed by Hochtief Projekt-entwicklung, Dahler & Company’s DCResidential subsidiary and BehnischArchitekten (for more details about theGerman projects, see p. 14) – will try to

win the race among residential devel -opments. As for the business centresand green buildings categories, we aresorry to report that no German pro jectshave made it to the final round.

The visitors will decide

As ever, the visitors to the fair willdecide over victory and defeat. Projectexhibits are on show in Mipim’s ent -rance area. All you need to do to cast avote is to have your admission ticketscanned. In recent years, the Germans

The coveted Mipim Awards are waiting for their new winners. Immobilien Zeitung isa partner of the awards ceremony. Photo: Reed Midem

MIPIM AWARDS

Three German projects nominated for awards

often performed very well in the MipimAwards, sponsored by Immobilien Zei-tung. The last German winners includedthe Cologne Kranhaus by DevelopmentPartner (2009), the Hamburg Wasser-turm Hotel by Patrizia Projektentwick-lung (2008) and another Hamburg pro-ject, the Europa Passage shopping cent-re by Allianz Immobilien and HSHNordbank (2007). Retail projects, how -ever, are no longer honoured with aMipim Award but during a specific retailevent, the Mapic trade show, whichtakes place in November. (law)

Business centres Green buildings

300 NorthLaSalle, Chicago, USADeveloped by Hines

SAP America Headquarters, Newtown Square,USA; Owner: SAP

GlaxoSmithKline Biologicals, Brussels, BelgiumOwner: GlaxoSmithKline Biologicals

PHOTOS: NOMINEES

Center for Global Conservation, New York, USAOwner: Wildlife Conservation Society

Green Tomorrow, Gyeonggi-Do, South KoreaDeveloped by Samsung C&T Corporation

Solaris, Brussels, BelgiumDeveloped by Herpain Urbis

“The lively discussion hasshown howseriously we’retaking theawards.”

BärbelSchomberg

PHO

TO:

REED

MID

EM

submitted projects. The shortlist willcover five categories and comprise atotal of 15 teams composed of projectdevelopers and architects. Additionally,the jury will present a special prize andhonour the best Polish project sub -mitted, as Poland is this year’s specialguest at the trade show. Nadine Casta-

PHOTOS: NOMINEES

YOUR VOTE FOR KAMEHA GRAND BONN

MIPIM Awards 2010

Investor | Developer:

Architect:The City of Bonn proudly presents

Kameha Grand Bonn at stand Riviera Hall R 31.02


Augustine Rocco Forte Collection, Prague,developed by Raiffeisen evolution

PHOTOS: NOMINEES

The Kameha Grand Bonn is the firstproject in West Germany’s formercapital to be nominated for a MipimAward. The luxury hotel was de -

signed by the architect Karl-HeinzSchommer: “With its dynamic silhou-ette and its rooftop terraces, the hotelfaces onto the Rhine and is a uniquelandmark”, says Mr Schommer, who

is based in Bonn. The Kameha GrandBonn has 254 rooms, of which 64 aresuites. Besides integrating renewablesinto the developing concept such asgeothermal energy, the architectsintended to provide a suitable loca -tion for events. To cater for this need,the hotel is complete with large areasthat can host crowds of up to 2,500.Jörg Haas and his BonnVisio Grouphave invested approx. 100 millioneuros in this project and turned theirvision of a “twenty-first centuryhotel” into reality. The hotel hasalready become a member of thedistinguished “Leading Hotels of theWorld” association. It is operated bythe King Kamehameha Group, bestknown to insiders for their club orrestaurant business. (law)

andel’s Hotel, Lodz, Poland, developed byWarimpex

Refurbished office buildings

STIB/MIVB Headquarters, Brussels, -Belgium, developed by STIV/MIVB

PHOTOS: NOMINEES

Romeo & Julia is the name of a pro-ject submitted by the German IFMdevelopers, specialising in revitalisa -tion. In 2006, this company boughttwo tall office blocks in Frankfurt’shigh-price Westend location, refur -bished them from cellar to rooftop by2008 and put them onto the marketunder the name of Shakespeare’sfamous lovers. Branding properties isa core element of IFM’s strategy,which has worked out very nicely: sixmonths after completion, the tenancylevel has reached approx. 70%. As aresult, the buildings are valued sev eralmillion euros higher than before. “Wehave managed to turn a non-market -able property that used to be knownas the Bubis Towers into a desirable

address that meets the standardsyou’d expect of a completely newbuilding,” says Georg Glatzel, IFM’sCEO, who is “very proud” to benominated: “The nomination under -lines the quality of this property.” Thebuildings offer a total of 13,500 sqmof office space, plus two penthouseflats. Max Dudler’s branch in Berlindid the fine planning of the refurbish-ment. For their design, they drew oninspirations by the architect LudwigMies van der Rohe and the ChicagoSchool. “The simple and elegant glassfaçade of the building perfectlyblends in with the atmosphere of theWestend quarter,” says Mr Glatzel.Among other buildings, IFM alsoowns the Zeilgalerie retail property inFrankfurt. (law)

ICAB Business Centres, Brussels, Belgium,developed by SDRB/GOMB

Newton Suites, Singapore, developed bythe UOL Group

PHOTOS: NOMINEES

The 17-storey residential tower, about56 metres in height, in Hamburg’sHafencity bears the name of thefamous Venetian merchant and travel-ler to Asia. Matthias Tscheu, man -aging board member of the MarcoPolo Tower project developers, isenthusiastic about the nomination fora Mipim Award: “It’s an expression ofappreciation for our work.” The pro-ject is a joint venture between Hoch-tief Projektentwicklung and Dahler &Company’s subsidiary DC Residential.The most striking feature about thetower block is its sculpture-like struc-ture that increases in volume the closer you get to the top and has ahelical form. It was designed by theBehnisch Architekten who had also

planned the Unilever headquarters inthe Hafencity. According to MrTscheu, the “design-ready” concept ofindividual interior furnishings has metwith high demand. Approx. 70% ofthe flats have already been sold. “Theowners are free to choose where theywish to place individual functions,”says the head of the project develop-ment company. Prices for these luxuryapartments range between approx.4,000 euros/sqm and 12,000 euros/sqm. “This location cannot be repro-duced,” says Mr Tscheu. The MarcoPolo Tower has already re ceived anaward – during the European PropertyAwards ceremony in 2009, it was pre-sented with a prize as “best high-risedevelopment”. (law)

Havneholmen, Copenhagen, Denmark,developed by Sjælsø Danmark A/S

Romeo und Julia

Kameha Grand Bonn

Marco Polo Tower

Hotels & tourism resorts

Residential developments

Bonn

Frankfurt

Hamburg


FOREIGN BANKS IN GERMANY

Only a handful of foreign banks leftTwo and a half years after the onsetof the financial crisis, numerous for-eign real estate financing firms havebegun to withdraw from Germany.Especially banks with a buy-and-sellapproach have almost entirely leftthe scene. What is left are a handfulof smaller institutions that are openfor new business this year, or haveat least left their options open.

Real estate banks look back on atough year: few financing opportun -ities due to a lack of transactions, moreprovisions to cover the risk of non-pay-ment, and stricter requirements tosecuring equity since clients’ creditlines and ratings have plummeted.Additionally, many banks have facedinternal problems in other businesssegments. The bottom line is that there’s very little room to manoeuvrefor new business.

This tendency made itself felt mostlyamong foreign institutions, especiallyinvestment banks. Their businessmodel – granting loans and moving onto other negotiations as quickly as pos-sible – has not been viable for sometime since they have no longer beenable to find buyers for their loan instal-ments, neither on the capital marketnor on the interbank market. “At pres -ent, real estate loans are insufficient forinvestment banks,” says a loan agentfrom Frankfurt.

Closed offices

However, even “classical” commercialbanks are no longer as visible, somebankers say. Georg Jewgrafow, the realestate head of BayernLB, and GeorgReutter, board speaker of DG Hyp, forexample, cannot spontaneously thinkof any foreign banks that offer real estate finance in Germany at themoment.

Many foreign institutions have shutdown their German branch offices inreal estate financing completely. Theseinclude the Bank of Ireland, Caylon – a

operating actively in the German mar-ket. Just recently, the Austrian Landes-bank Hypo investment bank of Viennafinanced the acquisition of a complexwith office, hotel and residential facil -ities in Berlin by Arab Investments. MrFlatow had arranged the financing.Moreover, he counts the Dutch FGHBank, a subsidiary of Rabobank, andthe Belgian KBC Bank among the “veryfew foreign addresses” that still offerfinancing options in Germany.

Our research has shown that Natixisfrom France and the Dutch NIBC Bankare in this group, too. All these fourinstitutions are still represented inFrankfurt, Germany’s financial heart,with a small number of staff – andthey have plans to expand. DieterGroh, German Head of the FGH Bank,intends to acquire some 200 millioneuros of new business this year, forexample; last year, his bank generated125 million euros’ worth. AlexanderSaur, in charge of German real estatefinance at Natixis, tells us he wants toenter 250 million to 300 million eurosof loans into his books in 2010 after nonew business was recorded in 2009because of restructuring. The Frenchare handling a “credit portfolio in Ger-man-speaking countries” over approx.1 billion euros, of which around 90%is secured against German properties,says Mr Saur. “We want to expand ourGerman business continuously. It’s oursecond home market,” says Mr Saur.

The same holds true for the NIBCBank. Their head of financing, KatjaRoth, says she’s unable to give us anyspecific figures. However, she under -lines her willingness to make loansover a minimum of 15 million eurosavailable “whereas we have a slightpreference for offices and retail.” Onthe other hand, the KBC bank intendsto include smaller-scale transactionsbelow 5 million euros in its portfolio,too. For loans that exceed 20 millioneuros, local savings banks – Sparkassenor Volksbanken – are planned to betaken on board. (nik)

subsidiary of the French Crédit Agri -cole –, Wachovia, the Dutch SNS Bank,and UBS and Credit Suisse from Swit-zerland. What’s more, financial expertshave told us that US investment bankssuch as Goldman Sachs, JP Morgan andMorgan Stanley have joined them. Inresponse to Immobilien Zeitung’srequest for information, GoldmanSachs and Morgan Stanley did not wantto comment. JP Morgan, however, assures us they haven’t entirely with-drawn from the market. Although nonew business was generated and theloan book consolidated last year, nobody wanted to wind up the Ger-man activ ities. “We are certainly willingto pro vide real estate buyers with capi-tal,” says Ralf Klann, JP Morgan’s VicePresident.

There are whispers in the corner ofanother renowned US investment bankthat they still have local staff. Allegedly,Merrill Lynch, acquired by the Bank ofAmerica during the crisis, intend to re-

initiate new business activities as soonas markets allow for it, i.e. when the re-financing vehicles of securitisation andsyndication become functional again.“Re-placing loans is elementary to thebusiness model investment banks fol-low,” emphasises a Frankfurt bank clerkwho works for a US institution. Unliketheir German competitors, foreigninvestment banks have no access to thePfandbrief, the German mortgagebond, as a refinancing instrument.“Until the securitisation market is upand running again, these banks will notreturn to Germany because they don’thave any deposit business and no licence to issue Pfandbriefe, says CurthC. Flatow, a financial consultant.

Few bankers want newbusiness

Contrary to Mr Reutter’s and Mr Jew-grafow’s verdict, however, Mr Flatowhas identified an international bank

Numerous foreign real estate banks have closed down their offices.Photo: Fotolia.de/Christian Nitz

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APARTMENT INVESTORS IN BERLIN

El Dorado and trap for soldiers of fortune An El Dorado for apartment inves -tors – that was Berlin’s reputationuntil recently. Apartments seemeddirt cheap in comparison to otherEuropean capitals, there were dreams of rent and value rises, andthere was plenty of money aroundto finance the purchases. Now Cer-berus/Whitehall are looking for anexit, Oaktree is almost out, Anning-ton is buying and many an investorhas well and truly failed. A briefinventory.

The Berlin housing trust GSW,bought from the city by Cerberus andthe Whitehall fund (Goldman Sachs)in 2004, has prompted much specu -lation in recent weeks. Early in January,Goldman Sachs and Cerberus appliedfor the consent of the city senate re -quired by the purchase agreement tofloat more than 49% of the GSW withits around 52,000 apartments on thestock market. Since then, some obser-vers have considered an exit via thestock market as good as certain.

GSW Director Thomas Zinnöcker, onthe other hand, has put out statementsto the effect that the company merelywants to keep all its options open. It isalso conceivable, industry experts say,that the exit might take place via a saleto another foreign investor. GSW’smarket value is estimated at 800 mn to900 mn euros.

Fast profit

Should Cerberus/Whitehall manageto pull out of Berlin, they will havemade a tidy profit, says a consultantwith insider knowledge. The city ofBerlin, which had been offering theheavily indebted GSW for a song, got405 mn euros for the 65,700 units, oraround 500 euros/sqm – prices forportfolios bought later were far higher,in some cases around the 1000-euro

mark. 18 months after buying up GSW,the consultant tells us, the consortiumhad recouped its investment, mainlythrough property sales and financingmanagement, earning some 200 mneuros on top.

One possible buyer for GSW, the grape vine has it, is Deutsche Wohnen,its largest stockholder with just under25% the US financial investor Oaktree.Only five years ago, that same Oaktreehad taken over the majority (85%) ofthe Berlin housing trust Gehag with its25,000 units, in 2007 managing to takea step back via a merger with DeutscheWohnen after calling off its floatationplans.

The US investor paid around 800euros/sqm for Gehag in 2005, nettingmuch more at just under 1000euros/sqm or 17.5 to 18 times theannual net rent – in part in shares, that25% holding in Deutsche Wohnen.

ANZEIGE

The 190,000-unit heavyweight Deut-sche Annington now owns more than13,000 apartments in Berlin. A sub sidi-ary of Terra Firma, its most recentacquisition in early December of lastyear was the majority in the Primahousing company. They are said tohave paid almost 200 mn euros or agood 700 euros/sqm for the 4,500units, angled by IMW Immobilien in2005 for around 900 euros/sqm andforcibly sold after violations of thebanks’ loan conditions.

Deutsche Annington buying

Annington, which held back on thepurchasing side during the boom yearsdespite full coffers, wants to carry onbuying. And the exit: an IPO? It hadbeen planned for 2007 but was put offfor the time being in view of theclouds hanging over the stock market.

Managing Director Wijnand Donkersremains vague on the issue.

There were soldiers of fortune ridingthrough Berlin too – and they came toa serious fall. The most prominentexample is Cevdet Caner. Via its port-folio holder Level One, the Austrianinvestment company had bought up28,000 apartments and 700 retail unitsfrom 2005 on, with outside financingrates of up to 100%, piling up debts of1.5 bn euros by mid-2008. The plan ofreaping value from dilapidated build -ings with high vacancy levels and thenexiting via the stock market failed.Caner went bankrupt, and a large pro-portion of the apartments – many ofthem in East Berlin – are now underadministration.

The current focus in Berlin is onsmall core-type portfolios, mainly inpremium locations in the city centre,says André Adami, Project ManagerResidential at the consulting instituteBulwienGesa. Prices are at 14 to 15times annual net rent, he says, com -pared to up to 18 times during theboom. “The only things selling at thatprice are new buildings in PrenzlauerBerg or Charlottenburg,” commentsAdami. (cr)

Apartment trading in Berlin

Around 400,000 apartments were soldin Berlin from 1999 to mid-2009, themajority between 2004 and 2007. Instatistical terms, that means every fifthof the approximately 1.9 mn flats in thecity changed hands during this period.In actual fact, this figure is higher; first-ly because the official statistics from theFederal Office for Building and RegionalPlanning include only portfolio saleswith more than 800 apartments, andsecondly because not every deal wasmade public.

© Immobilien Zeitung

Cerberus/Whitehall are currently seeking an exit from GSW. Photo: GSW

ANZEIGE


THE RETAIL INVESTMENT MARKET

Green and red gummy bears rule the marketCushman & Wakefield predict substantial growth for investing inGerman retail properties. DennisBoergel is an investment expert whosees a dichotomy developing bet-ween core-business and opportun -istic investors.

In order to describe the market forretail property transactions, DennisBoergel likes to draw a comparisonwith gummy bears. The green onesstand for the core investors, the yellowbears represent the investors with aninclination towards higher risks (value-add), the red bears represent venturecapital with a 20%+ interest rate accord ing to IRR standards (oppor -tunists). “At present, the market isdominated by green and red gummybears.”

Green bears can go wherever theyplease. First-class retail buildings, e.g.new shopping centres in prime loca -tions in large cities, are in demand andtraded. More than anything, this assetclass includes a host of German open-ended funds. Financing, says Mr Boer-gel, isn’t an issue for core properties.“The race for absolute core propertiesis on for German banks.” Investorsreap the benefits from this marketsituation as they are granted inexpen -sive loans (interest rates below 4.5%)whereas banks have some scope to re-finance projects at low cost.

The market has more potential pit-falls for opportunistic investors, i.e. thered gummy bears. There are quite a fewof these, too, but the traffic lights areset to red for them. Or rather, they stillare, Mr Boergel emphasises. He drops

The investment market for retail properties, interpreted by Dennis Boergel – the red gummy bears (opportunists) are keen butcannot act, core investors (the green ones) go as they please. Value-add investors (yellow bears) play no role. Photo: bk

names like Westbrook as well as Gold-man Sachs and Morgan Stanley. “Myestimate is that ten to twelve opportun -istic funds are on our doorstep, mostof which lack a sufficiently economicalproduct on the German market.” Theremay be enough ailing properties orreal estate packages available but thiswon’t necessarily imply that the banksare willing to sell them. “As long as aloan is serviced, banks won’t be in -terested in selling a property and pro-viding for valuation adjustments,” saysMr Boergel. However, they may have todo so quite soon as many securitisa -tions and/or loans are due in 2011 and2012. This is too late for some oppor-tunists since “the investment horizonfor current opportunity funds will endin mid-2011.” Unspent equity will haveto be re-transferred to the funds’ in -vestors then, which increases theinvestment pressure on opportunityfunds.

For the time being, the value-addinvestors don’t play a major role, i.e.those aiming at an IRR between 12%and 18%. “Banks have a penchant foreither opportunistic or core business,”Mr Boergel explains. “In the mediumrun, however, I see more yellow bearson the horizon.”

Even if the market isn’t yet in fullswing for the reasons outlined above,Mr Boergel believes that 2010 will see amuch higher transaction volume than2009. The broker and transaction con-sultant expects a turnover of 7 billionto 8 billion euros for 2010 (2009:approx. 3.5 billion euros). These -dynamics will make themselves feltacross all types of real estate, whether itcomes to shopping malls, central retailstores or greenfield retail. “I also believe there will be opportunisticdeals in big-box retailing. On top ofthat, there are some supermarket port-folios around in the market at veryinteresting prices.” (cvs)

RESOLUTION PROPERTY

Stalled acquisitions

Shane Scott tours Germany three days aweek but has been unable to find anygood buys since 2007. Photo: ma

The retail park investor knows noshortage of money. The ResolutionProperty investors from the UK,backed by pension funds, are sittingon 800 million euros and couldspend twice this amount. Unfortun -ately, buying opportunities at inter -esting prices are hard to come bythese days.

“To date, we’ve been able to spendvery little of it,” admits RP’s SeniorManager Shane Scott who travels allover Germany during the week in hisquest for eligible properties. “Besides ajoint venture to refurbish a decayingbuilding in Berlin, we haven’t beenable to buy anything in Germany since2007. We haven’t identified many properties we could buy at interestingprices,” Mr Scott explains. ResolutionProperty would only pay for real estatefor 14 annual rents in premium loca -tions; anywhere else, 11 to 13 annualrents and/or return rates of 7% to 9%is the limit. Shaun Scott would onlyaccept a return rate of 5.5% “in toplocations like Berlin.”

The fund acts on behalf of Americanand British universities as it tries tofind large-scale retail parks that have a

potential that can be leveraged throughextensions, substantial alterations andtenancy optimization. For such pro -jects, the company likes to use its ownresources as they did recently whenthey rebuilt the food court in theChemnitz Neefepark. The companyhas no German subsidiary but com-missioned Cushman & Wakefield tomanage their portfolio of approx. 60properties. (ma)

CROSS-BORDER INVESTMENT TRANSACTIONS

JLL expects upswing for 2010In 2009, Germany was the mostactive market in Continental Europefor direct investment in retail prop -erties with a total volume of 1.53billion euros. The proportion of foreign players on the Continent dropped to a three-year low but isexpected to rise again in 2010, sayexperts of Jones Lang LaSalle.

Last year, some 7.3 billion euros wasspent on retail properties in Continen-tal Europe (i.e. Europe not includingthe UK and Ireland), as is shown in asurvey by the JLL brokers which com-prised all disclosed transactions in theretail sector over a minimum of 5 mil-lion euros each; typical high street prop erties were not covered by this.Although an increase of 40%, com -pared to July to September, was achieved in the fourth quarter (with a trans action volume of 2.5 billioneuros), this incipient boom towardsthe end of the year was not sufficientto reach an annual performance equalto that in 2008. The bottom line is thatlast year’s transaction volume was 40%less than in 2008.

In part, this was due to the lowdynamics among foreign players.

Cross-border deals only made up 40%of the total volume transacted. In twodeals out of three in 2008, at least oneparty came from abroad, whereas thecomparable figure for 2007 had evenbeen as high as 76%.

JLL predicts an upswing for 2010 andexpects new dynamics in cross borderdeals. “What with stable return rates,little competition among bidders and agrowing willingness of sellers to nego-tiate, any strategy of putting things onhold is becoming increasingly doubt-ful,” says Jörg Ritter, JLL’s Head ofRetail Investment in Germany. Fromthe third quarter, JLL had noted “aninterest, albeit reluctant” in opportun -istic and value-add investment onbehalf of investors from the English-speaking world. By and large, however,the 2009 motto will have to do for2010 as well – quality counts.

Jeremy Eddy, JLL’s Head of EuropeanCapital Markets, expects equity capitalto be used increasingly in real estatemarkets. “This way, REITs and real estate companies will be able toimprove their strained equity basis andextend their presence in European markets.” (ma)


VOCKERODE (SAXONY-ANHALT)

An eastern German Las Vegas in a cole bunkerSince the fall of the Berlin Wall on 9November 1989, an impressive number of entrepreneurs disguisedas soldiers of fortune have travelledGermany’s eastern Länder. Thosewho live in one of these states,Saxony-Anhalt, are now pinninghigh hopes on the Sybil Group fromIsrael, conveniently based in Cyprusfor tax reasons, to be seriousenough as to find investors who willturn the former power station ofVockerode into a tourist magnet forhalf a billion euros.

Some serious measures have beeninitiated. Two days before Christmas,Saxony-Anhalt’s Minister for Finance,Jens Bullerjahn, sold SpielbankenGmbH, a limited company owned bythe Land which held a number of casi-nos, to the Sybil Group. The onlyalternative option to such a stepwould have been to file for insolvencyproceedings. Through this disinvest-ment, however, the state achieved asales revenue of 1 mn euros. Moreover,just under 2.5 mn euros of debt wastransferred as a result of the transac-tion. The Israelis are shouldering thisdebt and have given a five-year guar -antee to save the jobs of all thoseemployed by Spielbanken GmbH.Their concession forms the basis for anew gambling haven.

Size matters

Observers believe the fact that theIsraelis bought some 40 hectares ofland in Vockerode from the Vattenfallutilities company “for over a millioneuros” proves that they are followingserious intentions. Concurrently, theSybil Group leased another plot rough -ly the same size from the district auth -orities, securing themselves a pre-emp-tive title should it be sold.

In the power station on the riverElbe that was decommissioned in1994, the Sybil Group investment, pro-ject development and managementcompany is planning to develop theVockerode Forte Entertainment Centre.As things stand, size matters.

The gambling El Dorado is set to bebuilt on 870,000 sqm. There are plans

to construct some 1,500 hotel roomsin four- and five-star hotels alongsideshopping facilities, a casino, some6,000 sqm of conference and eventareas, some 4,000 sqm of sports andswimming facilities, some 3,000 sqmof wellness space and 2,000 sqm ofrestaurant areas.

The official planning procedure forthis ambitious project was begun inApril 2009; investors want constructionto start in 2011 at the latest. The ForteCentre will become partially oper -ation al in 2012/2013.

Stefan Sadeh, Sybil’s Head for Ger-many, intends to collect most of thefunds necessary for the first section ofthe park (300 mn euros) among world-wide investors. “We’ve already man -aged to convince some investors fromIsrael and the US of our concept. At themoment, we’re in the process of short-listing investors so as to find someonewho best matches our strategic vision,”Mr Sadeh says.

Casinos without a future

A strategic alliance was forged be -tween the Sybil Group and MooreCapital Management, a US fund basedin New York City, says Sebastian Jung-nickel, a partner in the Berlin branchof the FPS commercial law firm whichserves the Israeli company. Mooreholds a share of 24.35% in Sybil Eur -ope Public Co. Ltd., Nicosia, Cyprus.

Mr Sadeh and his colleagues are con-vinced that the traditional casino mar-ket is doomed whereas entertainmentparks still have a future. What’s more,the idea of the gambling resort wasn’tthe brainchild of the Israeli Cypriots –the Vattenfall power company hadorganised a competition for the bestland use idea in this industrial park.

The Kohlebunker Casino

The University of Weimar walked offwith the first prize. The jury praised its“Casino Kohlebunker” (coal bunker)as follows: “The usage scenario of aA view inside the former engine hall.

The Vockerode power plant

The lignite-fired power plant ofVockerode was built in 1937 on thebanks of the river Elbe in Saxony-Anhalt. After World War II, the equip-ment from the power plant was disas-sembled and shipped to the Soviet Union as a reparation. A new plant waserected on the site between 1953 and1959. In its heyday, the power stationgenerated approx. 400 MWh for theBuna works in Schkopau. From 1972 to1974, a 64-hectare greenhouse park togrow tomatoes and cucumbers wasbuilt; the heat required was also gen -erated in the power plant. In 1994, thepower station was closed down. Theinitial contact was made between theSybil Group and the Managing Directorof Biq Standortentwicklung und Immo-bilienservice, Frank Weber, who was incharge of marketing the listed indus -trial park, at the Expo Real trade showin Munich in 2006. Mr Weber present -ed Stefan Sadeh, the Sybil Group’sCountry Manager for Germany, the prize-winning “Casino Kohlebunker”design. This mega-power plant is lo cat -ed in the Wittenberg District, about anhour’s drive from Berlin, to the south.


ANZEIGE

giant casino which was developed bythe authors appears to be suitable forfilling the large shell in a practical way.Their plan manages to convey animpression of the magic, wicked ap -peal of the fate a gambler may wellface.” (gg)

A gambling El Dorado on 870,000 sqm of space. Photos: Sybil Group

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RESIDENTIAL INVESTMENT

Danes are sailing at half-mastFinancial investors from Denmarkcame to Germany with briefcasesfull of money to buy flats.The financial crisis stalled any newactivities for Herkules and the TowerGroup who have shifted their focusto managing their existing prop -erties. Griffin even went bankrupt.

“Danes accounted for about 20% ofthe turnover generated in apartmentsales during the boom from 2005 to2007,” according to an estimate byMalte Maurer, Head of the Housing In-vestment Division of Jones Lang LaSal-le (JLL) Germany. As a rule, volumeswere not as huge as those transacted byBritish or American private equityfunds but amounted to 10 mn to 50mn euros.

What with a high proportion of ex-ternal capital, it was standard practice,says Mr Maurer, to enter into initial fi-nancing contracts with German banksand conclude secondary loan contractswith Danish banks. “Some people gotinto trouble because Danish creditorswanted to see their money. And sincenumerous investors settled for loancontracts with German banks over fiveyears, we’re likely to see more units onthe market soon,” says Mr Maurer. Forthe time being, those under less pres-sure are continuing to manage theirproperty.

Herkules has placed a fund with flatsworth 35 mn euros, while two similarprojects in their pipeline have had tobe shelved. Herkules’ hopes to takethem off this shelf this year have beendashed – to date, no buyer has been found for the apartments Herkules hadonce bought on their own account.

According to René Ravn, the company’sMD, there is no urgent need to dis -invest; in fact, the company was stillmanaging its stock. “Over the past yearand a half, our gross return rate has increased from 8% to 9%. We’re happywith that.”

According to Ravn, the crisis also of-fered opportunities; he’s launched anew division with a focus on asset andproperty management. For the timebeing, the company has advertised these services mainly in Denmark. Todate, Herkules has been assigned torender them in the commercial sector

They’ve lowered their sights – Danes in Germany. Photo: BilderBox.com

ANZEIGE

only – “it’s where the banks tend to bemore nervous,” he says.

The Tower Group has begun propertymanagement activities, too. This com-pany had financed its approx. 10,000flats by up to 90% of third- party capi-tal until it started to stagger and a majority of more than 50% was takenover by investors BXR from the Nether-lands earlier this year. Frank Scholzwho leads the Tower Group branch office in Berlin partly blames the ser -vice providers in charge of managingthe company’s stock for its decline. According to him, these contractors

hadn’t been able to achieve a max -imum yield from the Group’s stockwith the funds available. There fore, theTower Group decided no longer to relyon third parties, preferring to manageits stock with its own devices instead –as Mr Scholz puts it, “to be very closeto the properties and the tenants.”

Griffin, another fund initiator, failedto change things for the better – in la-te 2008, the company announced itsinsolvency. As we were told by otherDanes, Griffin acquired its 11,000apartments too expensively during theboom years and didn’t carry outthorough checks. Refurbishment hadbeen calculated too low, more and mo-re dissatisfied tenants have moved outof the stock, mainly in North Rhine-Westphalia.

Overly expensive purchases

However, the Danes have not com-pletely disappeared from the scene.Frank Müller Immobilien of Wuppertal,an estate agency which arranged packa-ge deals during the boom totalling 230mn euros where Danish private equityinvestors were chiefly involved, havecontinued to work for wealthy privateinvestors. Most of them are interested inproperties worth 1 mn to 5 mn euros.“The supply, however, is limited as de-mand is high, also by institutional inve-stors,” says the company’s owner, FrankMüller. Malte Maurer, who is in agree-ment with him, is seeing the Danes’ in-terest in apartments on the rise. “Invest-ment pools with private investors andcompanies with sufficient capital willseize their day – especially in Berlin andHamburg, I think.” (cr)

Reception on our stand with Mayor Jürgen Roters 17th March 2010, 15.30 hrs.Riviera Hall, Stand R 31.02

Cologne & Partners City of Cologne, S RheinEstate, Bauwens, Colonia Real Estate, Greif & Contzen Immobilien, Immobilien Manager Verlag, Pandion, Vivico Real Estate Cologne

Office of Economic Development, Willy-Brandt-Platz 2, D-50679 Cologne Tel. +49 221 221-25765, Fax +49 221 [email protected], www.stadt-koeln.de©

Pau

lo d

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anto

s

The Mayor City of Cologne

MIPIM 2010We look forward to your visit!


BAVARIA

Renewed interest in MunichIn 2009, the Germans stayed amongthemselves in Munich – foreigninvestors only formed a small frac-tion of all buyers. In 2010, however,the tables might turn.

Everything was coming up roses inMunich in 2007. Back then, the pro-portion of foreign investment in realestate amounted to some 60% of thefigure of 6.55 bn euros of office andretail sales turnover at the time. Mor-gan Stanley, Goldman Sachs, Immofi-nanz – name any internationally activelarge investor – they were virtually allpresent in Munich, on the lookout forcommercial properties. Then came thecrisis; global investment has with -drawn ever since. In 2008, the propor-tion of foreign investors in the com-mercial properties segment amountedto no more than 31% (of a total trans -actions volume of 1.934 bn euros),while in 2009 foreign investmentaccounted for only 16% of 1.35 bneuros. Hardly any new investment byinternational investors was recorded,and those who had already acquiredreal estate in Munich kept it on stock,sat and waited until it the buildingswere completed – and some are stillwaiting.

“Most investors who did business inMunich in 2009 were from Germany,”says Marcus Lütgering, Head of JonesLang LaSalle’s Munich branch office,summing up what happened on thelocal market last year. Large foreigninvestors like Morgan Stanley andGoldman Sachs had disappeared fromthe Munich market as buyers over thepast two years, adds Stefan Striedl,CBRE’s Head of Investment Munich.“The underlying reason is that oppor-tunistic companies are having a hardtime getting hold of third-party capi-

tal.” What’s more, prices have droppedmuch more in places like London orParis than in Munich after the real estate crash. “As the market regainedits dynamics, these cities offered thehighest potential.” So it’s no wonderthat cross-border capital was investedon the rivers Thames and Seine ratherthan on the Isar.

2009, the year of the pullout

Consequently, foreign names weremore likely to be found among the sel-ling parties in 2009. Icade of Parisdisinvested an office property with19,000 sqm of lettable floor space inMunich’s Arnulfpark for approx. 75 mneuros to Deka Immobilien. The GlobalFund I, managed by MGPA, sold theMunich City Tower (MCT) to a privateequity fund, Freo Germany II Partners.

AEW invested in a logistics property in Straubing in 2009. Photo: AEW

The Austrian Immofinanz companybid farewell to two fully let office build ings and a five-star-plus hotel inMunich’s Lenbachgärten, a 65,000-sqmarea in the city centre. The package wastaken over by the Munich office of AMalpha, which makes investments for aselected few wealthy German families.Its value, which was taken as a basis forcalculating a selling price, was esti -mated at over 200 mn euros. With suchamounts, it became a running jokeamong real estate professionals lastyear to say that the Münchener (i.e.Munich locals) were buying their cityback.

It is doubtful if this tendency willprevail in 2010, too. “We’re expectingforeign investors to renew their interest,” says Mr Striedl. By now, thedifference in return rates among mar-kets has narrowed, which has made

Germany more competitive. “At pres -ent, we can feel that the demand byforeign investors for office properties ina Munich location is rising, not leastbecause prices for alternative invest-ment options in London have substan-tially increased, too,” confirms AchimDegen, Managing Director for Invest-ment International at Colliers Schauer& Schöll, Munich. “Even though theIrish and Scandinavian investors whoused to be so visible in Munich from2006 and 2008 have become lessactive, we’re noticing an interest notjust on behalf of investors with anopportunistic mindset who are, as ever,waiting for the prices for risky pro ductsto improve more dramatically, but alsoon behalf of investors from Italy, Spainand Switzerland, to name just a few, incore properties.” (cry)

Whenever there is any mention ofnon-Germans who were buying inBavaria in 2009, one name tops thelist: AEW. In 2010, this international-ly active real estate company intendsto raise its investment volume forGermany yet again. The Bavariansare rubbing their hands in antici -pation.

“For the time being, we’ve investedsome 18 bn euros, and for historicalreasons this is mainly invested in France. However, we’d like to streng -then our commitment in Germany.”When Bob Reiskin, AEW’s ManagingDirector and Head of Investments forEurope, utters such words, then every -one in the German real estate industrypricks up their ears. As early as last year– when only very few international real

estate companies made capital invest-ments in Germany – AEW attractedeveryone’s attention through trans -actions in commercial and/or office prop erties and logistics buildings inFrankfurt, Munich and Straubing.

Bavaria tops the shopping list

“Our interest in Germany is partlydue to the fact that many German inves tors are our clients, and they wishto be present on their local markets,”explains Stephan Boenning, AEW’s MDfor Germany who heads the Dusseldorfbranch office of the French corpor -ation. Furthermore, the company hasbeen managing capital funds withvarious risk potentials for various pro-jects – from office construction to

logis tics and retail, and housing. “Thismeans you’re likely to find suitableproperties.” Since German office rentshave plummeted to the level last re -corded in the 1980s, AEW believes thatthe investment made in this field holdsa huge growth potential. Therefore, thecorporation is planning to investapprox. 500 mn euros in German realestate, thus more than doubling theirinvestment ratio as compared to 2009levels.

All Bavarians, but especially thosewho live in Munich, will be pleased tolearn this. After all, the French invest-ment company made a clear commit-ment in 2009 as they bought a com-mercial property in Munich’s Sonnen-strasse for 20 mn euros and a logisticsbuilding in Straubing, leaving nodoubt that Germany’s south is high on

their wish list. Economic factors andthe much praised quality of life speakin favour of Bavaria and Munich, ourAEW interview partners say.

“Which is why we would like to set apriority for our investments to bemade in Bavaria, including Munich,”says Gereon Kohlgrüber, AEW’s Dussel-dorf Director. However, all decisionswill depend on what offers the com-pany receives. In order to be able tojudge them – even outside Germany’sreal estate havens –, the corporation issetting up a branch office in Dussel-dorf and is cooperating intensivelywith local partners. “Last year, this strat egy meant we more than brokeeven,” says Mr Reiskin with a laugh,“because we are very, very satisfied withour purchases to date.” (cry)

AEW

500 mn euros for real estate purchases in Germany


KONDOR WESSELS

“The Dutch like to buy whole housing estates”

THE NOKIA PLOT IN BOCHUM

What will happen if nothing goes as planned?

Kondor Wessels took over general planning responsibility for the Ruhrbania project in Mülheim. Furthermore, the company is building a medical centre there.Photo: Kondor Wessels

More than anything, it is niche pro-ducts that the Kondor Wessels Grouphas invested in Germany. The com-pany belongs to a Dutch privateinvestor and its German manage-ment. In North Rhine-Westphalia,Germany’s large and densely popu -lated western Land, Kondor Wesselshave mainly invested in class B locations.

“It’s one of the special features of ourcompany that we have established our-selves as developers and builders alike,”says Dieter Janzen, authorised signatoryof Kondor Wessels Projektentwicklungbased in Dusseldorf and Wuppertal.Thanks to this combination, projectscan be realised at lower costs by hiscompany than by competitors. Conse-quently, Dutch investors have taken aspecial liking for Kondor Wessels’ pro-jects. Buyers include institutional in -vestors from the Netherlands and pros-perous individuals, alternatively knownas family offices.

“The Dutch market has been com -pletely overheated in recent years. Atpresent, Germany is considered muchmore crisis-resilient.” Germany can alsodraw on another benefit, its federalstructure, which means the price gapbetween the capital and other real es -tate centres is smaller in this countrythan anywhere else, Mr Janzen believes.

Specialised in healthcare andresidential properties

“Our focus is on residential real es -tate and special properties in the com-mercial segment,” says Mr Janzen. “Wedon’t develop office projects.” As forhousing, Kondor Wessels has built ter-raced houses and multi-storey build -ings, all in the mid- to high-price range.“Furthermore, the Dutch like to buyhousing estates because we’ve seen thatthe tenants of a terraced house oftentreat the property as if it were theirown. Initial return rates may be lowerbut so are maintenance costs in thelong run.” Kondor Wessels like to fit

their residential properties with geo-thermal energy systems.

The largest project is the See-Prom -enade residential complex in what isperhaps the most beautiful district ofEssen, Kettwig, directly on the banks ofa water reservoir. The estate, which isbuilt on land formerly the site of theScheidt’sche Fabrik manufac tur ingplant, is expected to cost approx. 50 mneuros. Kondor Wessels is planning a mixof urban villas, terraced houses and flats.

In Mülheim, they’re developers and chief planners

The Ruhrbania project in Mülheim ander Ruhr is likely to become even morespectacular – this town will be broughtcloser to the river that is part of itsname. In this case, Kondor Wessels willplay the part of chief planners. At thesame time, the company will developone of the four construction plots itself.As part of this project, a centre for spe-cialist doctors is set to be built directlyon the shore of the Ruhr, where there

will also be a new promenade, about500 metres long. A tenancy agreementhas already been signed with the futureoperator. On the upper floors of thiscomplex, high-quality penthouses willoffer 80 to 250 sqm of space each, andrestaurant facilities on the ground floorwill add to the attraction of the location.

Another project is being developed inWuppertal, on land formerly used by theGeneraloberst Höppner barracks. Thisplot covers a surface area of approx.400,000 sqm and will host the Wupper-tal Engineering Park where there areplans to construct commercial and resi-dential properties. For example, 110semi-detached and detached houses arebeing built, 26 of which have alreadybeen sold to a Dutch investor. Another25 went to private owners who will livein them themselves.

“On top of this, we’ve got smaller- scale projects in Dortmund, Unna, Es -sen, Erkelenz, Remscheid and Solingen.However, we’d also like to do somethingin a prime location like Dusseldorf,” MrJanzen tells us with a smile. (thk)

New users have settled in large parts of the former Nokia premises.Photo: Stadt Bochum

Until 15 January, 2008 Nokia pro -duced upmarket cell phones inBochum. On that day, however, theFinnish telephone manufacturer noti-fied its staff and the local authoritiesthat it was going to give up this site.What can you do if suddenly nothinggoes the way it’s planned?

Within a year, so it said in the Finns’statement that met with outrage, thecompany was going to turn its back onBochum and open a new factory inRomania. Nokia was to leave behind2,300 permanent employees, some1,000 contract workers and 675 peopleworking for suppliers in Bochum – andalmost 400,000 sqm of land formerlyowned by the cell phone company.

The subsequent public debate forcedNokia to consider and mitigate thepotential damage to its corporate image. As an initial step, a total sum of200 mn euros in redundancy pay wasmade available for the company’s per-

Nokia’s expense. On top of this, Nokiawas requested to pay back 20 mn eurosof subsidies to the state’s treasury, andthe proceedings from the sale of theplot (approx. 13 mn euros) were ear-marked for a structural developmentfund to which the Land contributedanother 20 mn euros.

In June 2009, a public bid for tenderfor the entire area was won by the com-pany Thelen Holding. By now, onlyabout nine months after its sale, threequarters of the former production hallshave been occupied by new users –companies from various industries suchas Caterpillar (building machinery) orSodexo (catering) have settled there.New occupiers have even been foundfor about two thirds of the offices. Forexample, the cable TV operator UnityMedia intends to move its headquartersto the former Nokia site. At the end ofthe day, the Finn’s pullout hasn’t causeda fiasco in Bochum. (thk)

manent staff. In parallel, Nokia showeditself willing to market the corporatepremises together with the authoritiesof North Rhine-Westphalia and

Bochum. The Engel & Völkers real es -tate firm joined a task force set up bythe city and Land authorities and wascommissioned to market the plot at


HOTEL INVESTMENTS

Israelis confident of finding a cure for ailing

ANZEIGE

Precise Hotel Collection, an upmarketgroup. Since then, its founder, Mr Ben-Haim, has sold part of the chain to aGrand City partner, transferred thehotels’ management to Grand City andwithdrawn from operative business.

Adjusted for portfolio effects, GrandCity incurred a sales decrease by 10% –not adjusted, the sales rose from 94mn to 170 mn euros as 35 hotels wereadded to the Group’s portfolio. Thisyear, Grand City aims to hit the 100-hotel barrier. By 2013, they may own250, many of them in other Europeancountries. With a view to the crisis, MrWindfuhr is hopeful about findingsome bargains in Spain and the UK.

For Leonardo, the crisis sloweddown its expansion dynamics in theend. The target figure of 100 hotels by2010/2011 originally announced is stillbeing pursued but the company doesnot expect to achieve this any earlierthan in late 2011. (pm)

Israeli investors have accumulatedlarge hotel portfolios in Germany invery little time. The crisis hasn’t leftthem unimpressed but they are askeen to expand as ever.

They are based in Berlin and tend tobuy ailing hotels – from Germany’scapital, Israeli investor groups havecreated hotel groups, at least two ofwhich have become major players inthe German marketplace. One of themis Grand City Hotels who started outwith one property in 2006. Now thechain manages a total number of about80 under various brand names. Withjust one exception, all these hotels arein Germany.

In demand: ailing hotels

On a slightly smaller scale, but stillan achievement – since 2007, Leonar-do has grown to 48 hotels, almost halfof which are in Germany. Leonardo’sowners include the Fattal Group of theIsraeli hotelier David Fattal and a num-ber of other well-known names fromIsrael. The Precise Hotel Collectionwith ten hotels – nine of which are inGermany – comes third in this leaguetable. It is owned by the Israeli hotelierRon Ben-Haim.

room rates and few occupants, we canachieve an attractive return on invest-ment,” says Mr Windfuhr.

.Return to Israel

Despite this strategy, Leonardo wasestablished as a brand for the Euro peanhotel activities of the Fattal Group; itrestricts itself to three- to four-starhotels. Like most other hotel chains,Leonardo prefers hotels in premiumcentral locations. Meanwhile Leonardohas entered the home market in Israelas a major player, too – in mid-2009,the chain acquired twelve propertiesincluding all Sheraton hotels in Israel.In the medium term, the Group intendsto re-brand these hotels and the GoldenTulip ones in its portfolio and use theLeonardo brand solely.

The Israelis were affected by the cri-sis to different degrees. Apparently,several projects which were almost atthe signing stage fell through for the

The purchasing strategies of thesegroups do not vary greatly. They watchout for insolvent hotels, addresseswhich have been closed for some timeand/or could be managed far betterfrom the investors’ point of view –hotels which come cheaply and offersubstantial value potential.

Their strategic focus, however, variesto a large extent. “Our investors are nothoteliers but they’re interested inadding value to the properties,” saysChristian Windfuhr, Grand City’s CEO.“We are hoteliers and want to make aprofit in our operations, not by specu-lating in real estate,” says Daniel Rogerwho is in charge of Leonardo’s Euro-pean business activities. Accordingly,Grand City hardly have any require-ments concerning the locations andfurbishings. “We’ll buy any hotel wethink we can make money from,”explains Mr Windfuhr.

As a result, Grand City holds a con-glomeration of highly diverse productsunder very different brand names within a range of two stars to four starsplus. Even exotic locations in smalltowns like Bad Oldesloe won’t beexcluded a priori if a 140-room prop -erty can – as was the case here – be hadfor 500,000 euros. “Even with low

Grand City and co. prefer to buy ailing hotels like this one in Bad Oldesloe and makethem ship-shape. Photo: Grand City

FOREIGN INVESTORS

False expectationsAt the peak of the real estate boom,many a foreign investor struck dealsin the hotel market. Most of theseventures, however, haven’t been crowned with success.

In 2006 and 2007, the share of for-eign companies in German hotel trans -actions amounted to about 90%. Where as some hotel corporations en -tered the German hotel market success -fully, however, many opportunistsended up making losses through specu-lation. In the false hope that Germanhotel rates would catch up and reach alevel as high as in the rest of Europe,they preferred to negotiate managementcontracts with the lion’s share of theoperational risk remaining with the

owner. Bottom line: Not only did theproperties’ values shrink during the cri-sis, but the cash flow did, too.

“At present, everyone is conductingnegotiations at the table,” says Ulf Tem-plin, Managing Partner of PKF hotel -experts in Munich. Most hotels still hadenough revenue to cover their expensesbut not enough for depreciations andcredit service. For the time being, thebanks have kept quiet, granting defer-ment for interest rate and redemptionpayments.

In some cases, funds are made avail -able from other sources, says ChristophHärle of Jones Lang LaSalle Hotels. Hedoesn’t expect many emergency salesbut some investors will prob ably haveto return the keys to the bank. (pm)


ORCO GERMANY

The Orco party’s overFEHRBELLINER HÖFE

A broken dream

In 2004, Rainer Bormann estab -lished Orco Germany as a subsidiaryof the internationally active OrcoProperty Group, in the convictionthat the German market and especially the Berlin one held a high potential. Only later did he see that not all his expectations have been met.

Only hard-boiled film enthusiastswill remember the film that won thecoveted Golden Bear at the Berlinalefestival in 2007 – it was a Chinesemovie, “Tuya’s Marriage”. However, theparty organised by the real estate com-pany Orco Germany during the festivalin a disused factory in Berlin-Mitte stillenjoys legendary status. Thousands ofguests had come to a celebration ofsuperlatives, among them Rainer Bor-mann, Orco Germany’s CEO.

Back then, the entrepreneur who wasborn in East Berlin in 1971 had reached the peak of his career. Duringthose months, Orco Germany boughtvirtually anything the German propertymarket had to offer. To quote just a fewexamples, Orco took over the Viterraproject development company from

jects. For instance, Orco Germany soldthe Fehrbelliner project to a medium-sized company in the construction sec-tor from Leipzig, and the developmentof Leipziger Platz is now in the handsof Harald G. Huth, a Berlin-based pro-ject developer specialising in retail prop erties.

The sale of the Cumberland Housestalled at the first attempt because theprospective buyer from Switzerlanddidn’t agree to the sales price.

A deficit of 108 mn euros

Rainer Bormann had to change tackand sell large parts of the real estateportfolio for two main reasons – first-ly, Orco Germany was massively hit bythe crisis on the financial markets sincethe cash flow from banks that had facil itated the expansion strategy in thefirst place stalled; secondly, the OrcoProperty Group parent company wasforced to file for a procédure de sauve-garde – tantamount to insolvency pro-ceedings.

At least, it was possible to completethe two largest office projects takenover from Viterra, i.e. the Sky Office inDusseldorf and the H2 Office in Duis-burg. In effect, however, this is the lastof any project development activitiesby Orco Germany. Additionally, branchoffices were closed and staff maderedundant in order to cut costs. All thatis left of the great phrases utteredduring the boom is the hardly glam -orous GSG business. Its commercialestates are well let and make up a largeshare of Orco Germany’s income.

Despite diverse savings efforts, thecom pany is finding itself in a financialsituation nothing less than disastrous.As per the end of September 2009, thecompany’s liabilities amounted to 923mn euros. The sales volume generatedduring the first nine months of the year2009 amounted to no more than 51 mneuros, whereas the net loss was as highas 108 mn euros, mainly in curredthrough write-down effects. It seems theparty is definitely over. (Chr. Hunziker)

Developing Leipziger Platz in Berlin was supposed to become Orco’s largest project.It has been taken over by another developer who intends to realise it.

Photo: Kleihues + Kleihues

Rainer Bormann. Photo: Orco

One of Orco Germany’s projects thatattracted most attention was theFehrbelliner Höfe. The companywanted to build apartments ofunprecedented luxury. Alas, they failed. The German project devel -opers are now set to realise thisendeavour in a downsized version.

The 150 residential units Orco Ger-many had intended to provide on a

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gesellschaft), a trust which held850,000 sqm in commercial estatesscattered across Germany’s capital.

Especially in Berlin, the companyadded selected plots and top-notchproperties to its portfolio, such as theCumberland house, a representativebuilding in a premium location onKurfürstendamm, the undevelopednorth-eastern corner of Leipziger Platz,once home to a famous Wertheimdepartment store, and the aforemen-tioned old factory in the Mitte districtthat Orco planned to convert into aluxury residential estate under thename Fehrbelliner Höfe (see article onthe left).

A dynamic city

Mr Bormann never tired of praisingBerlin’s advantages. “For me, Berlinoffers dynamics I do not see in anyother city at the moment,” he said inan interview for a glossy magazinepublished by his own company in2007. “Young, creative minds havecome here en masse and are a drivingforce that’s making itself felt.”

Mr Bormann, too, set out to becomea driving force on the Berlin propertymarket. In 2003, he returned to hisnative city after a stint in internationalinvestment banking (most recentlywith Lehman Brothers) to find a capi-tal city with high potential and lowreal estate prices. Therefore, he estab -lished Orco Germany in 2004 jointlywith the Orco Property Group, aLuxembourg-based project develop-ment and investment company mainlyactive in Central and Eastern Europe.Besides the Orco Property Group, aMorgan Stanley fund holds a largeblock of shares in Orco Germany, acompany listed in the Frankfurt StockExchange’s Prime Standard segment.

Originally, Orco Germany saw itselfas a developer and investor that wouldkeep its own projects on stock in thelong term but today’s reality tells a dif-ferent story since the company hasdivested most of its prestigious pro -

former factory site in Berlin’s Fehrbelli-ner Strasse was to become a home for“people with more than one residenceand a penchant for culture”. At theborder between the two internationallyknown Berlin districts of PrenzlauerBerg and Mitte, Orco Germany’s CEORainer Bormann wanted to createsomething he believed the Germancapital lacked – apartments to meetinternational standards, away from theoutskirts or artificial quarters like Pots-damer Platz, in the heartland of anurban fabric.

Orco’s marketing team trained itssights mainly on prosperous culturevultures from the US as a target group.In his concept, the architect EikeBecker had designed flats for themwhich would offer all mod cons andbeyond that, a spa area and spaciousroof gardens. The penthouse units wereto be up to 500 sqm in size, some ofthem at prices higher than 10,000euros/sqm.

In August 2008, however, less than ayear after the plans had been present -ed, Orco announced a halt to con-struction. The company explained thismeasure by a shift in focus, saying theywanted to concentrate on commercialproperties from then on – althoughOrco had always maintained that theunits sold very well. In 2009, Orco –which had slipped into financial diffi-culties – disinvested the project to theLicon Group from Leipzig which hasdeclared its intention to realise it by2012. Top prices have dropped to6,690 euros/sqm, and the buyers whohave availed themselves of this offerare all German. (Chr. Hunziker)

Deutsche Annington which had num -erous large commercial properties inits pipeline; Orco Germany didn’trefrain from spending 400 mn euroson the Berlin GSG (Gewerbesiedlungs-

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MORGAN STANLEY

The sun went down in Germany

Globally operating real estate investors like to draw comparisonsbetween national economies. In an attempt to apply its Japanese strategy to Germany, the US investment bank Morgan Stanleyexperienced a debacle.

Germany and Japan can be com -pared – they both lost a war, they’reboth highly developed industrial econ -omies, and both countries seem to prefer procrastinating to solving theirproblems. But do these similaritiesimply that what makes the two realestate markets tick is the same thing?That’s what many investors from theUS thought. Take Morgan Stanley, forexample.

After a long period of stagnation inJapan in the 1990s, the investmentbankers were “into Japan”. “In ourview, Japan offers the biggest real estateopportunities in the world at themoment,” Sonny Kalsi, former head ofglobal real estate investment with Mor-gan Stanley suspended in 2009, pur-portedly said in 2006. Morgan Stan-ley’s top dogs believed a similar storywas unfolding before their eyes in Ger-many, a strong economy with anundervalued property market. Usingthe Japan-Germany plot as an argu-ment, Morgan Stanley managed toattract a lot of money. In its oper -ations, the Morgan Stanley Real EstateFund (MSREF) VI, closed in 2007,relied on its backing with equity pro-mises amounting to 8 bn USD. “We allearned a lot of money in Japan. Whenwe set our sights on Germany, weintended to proceed in the same way,”a private equity veteran describes thepremises many US investors used tobelieve in.

Even before MSREF VI invested inGermany, Morgan Stanley had alreadystruck a number of successful deals inthis country, including the purchaseand sale of Telekom properties (2001/2005) and negotiations for flats on

behalf of ThyssenKrupp (2004/2006).Inspired by the initial success, MSbegan to intensify its buying activitiesby focussing on large commercial prop erty packages with “upside poten-tial” in Berlin, Hamburg, Frankfurt andMunich. The objective was to benefit asmuch as possible from the rent levelgrowth projected to last until 2012/2013.

Trianon sale flopped

According to one of Morgan Stan-ley’s former employees, it was due toits experience in Japan that MorganStanley tried to tackle high-volumeassets in Germany in such a targetedway. In the land of the rising sun, theAmericans had earned a lot of money,he says, “but not as much as they thinkthey could have made.” In bids for ten-der, the investment company was oftendefeated since it underestimated themarket dynamics. “In Germany theydidn’t want to come second again.”

In order to implement its “the biggerthe better” strategy, the Wall Streetchampion was joined by a young invest-ment banker in summer 2006. Hisname was James Lapushner, and accord -ing to estimates, his team investedapprox. 10 bn euros in Germany. Underhis authority, the Trianon tower inFrankfurt, for example, which was 92%let, was bought in summer 2007 at aprice worthy of a fully let property. Mor-gan Stanley found 620 mn euros anacceptable sum. This price was equiva-lent to a netted initial return rate justbelow 5%. The transaction was basedon the assumption that the rents in thistower would rise from over 30 euros/sqm to 50 to 55 euros/sqm by 2012/2013. Rents recovered, however, only toreach just above 40 euros/sqm.

“If you sold the Trianon today, theinitial return rate for the buyer would besomewhere in the range of six to sevenpercent,” says a property buyer. MorganStanley’s open-ended P2 Value fund

For Morgan Stanley, Japan turned out to be the land of the rising sun. Germany didn’t. Photo: Fotolia.de/elisads

with a 57% holding of the Trianon hadto write down its stock by 10% in 2009.In Japan and Germany, the countrieswhere the fund invested most heavily(22% and 19%, respectively), 66 mneuros and 50.2 mn euros had to betaken off the balance sheet. P2 Valuewas closed in autumn 2008.

shelled out 2.1 bn euros for this pur -chase. Just recently, the financial inves -tor returned the keys to the Royal Bankof Scotland that had financed the deal.

Experts opine that the failure torepeat the Japanese success story inGermany is not only due to the finan-cial crisis or to erroneous assumptionsthe US boys had made with regard tothe German market dynamics or rentdevelopment. A major contributingfactor was also that many investorswanted the same kind of thing at thesame time.

“Massively over-invested”

Cerberus, for example, found out thatbusiness with bad debt could not beapplied to Germany on the same scale.“Competition for non-performing loanswas much fiercer here,” says a formerCerberus employee from the purchasingdivision. Therefore, the company focussed on apartment purchases forfurther sale as of 2006. Blackstonemanaged to exit in time, too. On thecontrary, Morgan Stanley’s strategy became even more radical: “Especiallyin Frankfurt and in Hamburg, the bankover-invested to a massive extent,” a for-mer business partner says. “That’s a bit-ter pill for them to swallow.”

Morgan Stanley makes no commentabout any of this. In late March of thisyear, its Head of Acquisitions will quithis office in Frankfurt’s Junghofstrasse.One of his last official duties was tosell the Parktower in Frankfurt. Thisoffice building, bought with a low netinitial return rate of just over 4%, wasdisinvested to a Rreef fund in late 2009for 130 mn euros, the grapevine has it.Rreef is said to yield an initial returnrate of around 5%. “Again, they’ve shown how good they are at throwingmoney down the drain,” a MorganStanley competitor comments sarcas -tically. (cvs)

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The acquisition of 28 propertiesfrom the Union Investment Real Estatefund turned out to be yet anotherdebacle. In 2007, Morgan Stanley

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NORRPORTEN INVESTS IN HAMBURG

The Swedes appreciate Hafencity and FC St. PauliOne of a chosen few foreign investors to buy real estate in Hamburg in 2009 was the Swedishcompany Norrporten. The S-Kai office building was purchased for 58 mn euros. It’s the third additionto Norrporten’s Hafencity portfolioand unlikely to be their last one in Hamburg.

An icy day in Europe’s largest urbandevelopment project. Unimpressed, BoHenriksson treads safely on slipperyterrain. He says with a laugh: “I’mfrom Luleå in the north of Swedenwhere temperatures can be as low as40° Celsius.” It wasn’t the compara -tively mild winter that drew Mr Hen-riksson, Norrporten’s InternationalBusiness Manager, to Hamburg but rather the stability of the market.

“We looked around in Germany.”Frankfurt, he says, is too volatile, theMunich market was difficult to gainaccess to, so what about Berlin? “Mydaughters love Berlin and in the longrun, its market is bound to performsuccessfully.” At present, however, itisn’t easy to choose the right locationfor real estate investment in Germany’scapital, he believes. It’s easier to makea choice in Hamburg.

Investing on the waterfront

“The Hafencity is part of centralHamburg,” says Mr Henriksson, anamiable 55-year-old real estate expert.“It’s only 10 minutes’ walk from theTown Hall and situated directly on thewaterfront.” He goes into raptures: “Welove the water.

Luleå, Umeå and Sundsvall is whereNorrporten has its roots on the BalticSea, and almost all our properties inCopenhagen are located on formerport basins.” Moreover, the Hafencitygives you the opportunity to constructmodern architecture on large and flexible pieces of land for the “bigcompanies”.

And the mix of different functions,of course – housing, cruise terminaland culture. Mr Henriksson concedesthat the Elbe Philharmonic Hall is acrazy project. “But it’s good for thedistrict, and in a few years everyonewill have forgotten about the commo-tion about its cost.” The same thinghappened to the unexpectedly expen -sive (175 mn euro) Turning Torso, a200-metre residential skyscraper inMalmö’s Western Harbour, a Swedishcounterpart of Hamburg’s former port-lands. (Editor’s note: Nonetheless, theboss of the HSB housing trust was dis -missed on these grounds.)

Naturally, the geographic vicinity ofHamburg to Copenhagen and Swedenspoke in favour of the location. “Whatwith the planned Fehmarnsund Bridge,these regions will grow even closer toeach other.” This was what happenedafter the Oresund Bridge linking

Copenhagen and Malmö was com -pleted in 2000. “Today, many Daneslive in Sweden, which is less expensive,and work in Copenhagen.”

In general, Norrporten only invests inlocations with a solid infrastructure fortraffic – airport, rail and roads. Withalmost no exception, the company’sSwedish properties are located in medi-um-sized cities and towns on the E 4, aEuropean route which ends in Copen-hagen. Stockholm is not on the E 4,which is why you won’t find any realestate in Sweden’s capital in Norrpor-ten’s portfolio. “Stockholm was tooexpensive and is too volatile.” At pres ent, however, there are some inter -esting entry options. Another invest-ment criterion for the Swedes iswhether there is a university in the vicinity “because such places developsignificantly better as well-educatedpeople – human resources – live there.”

Norrporten faced less internal oppo-sition to their choice of Hamburg thanto their move to nearby Copenhagen.“90% of Swedes would invest in Ger-many rather than in Denmark.” Thereare more similarities between theSwed ish and German mentalities.However, Henriksson did go to Copen-hagen – since February 2005, the com-pany has developed a portfolio ofapprox. 100,000 sqm.

Not always first choice

Since 2005, the Swedes have beensetting their sights on Hamburg, too.Selling parties, however, haven’t alwaysconsidered Norrporten to be first choice. DS Bauconcept, for example,initially spoke out in favour of a com-petitor for the Hamburg-America- Center, and the S-Kai, developed byDWI Grundbesitz, was a project Mor-gan Stanley was interested in at thebeginning.

In August 2009 Bo Henriksson signed the purchase agreement for the S-Kai, designed by Böge Lindner. Photos: DWI/ff

But the Swedes are in no rush. Forthem, it’s all about an investment thatprovides long-term security, sinceNorrporten is held by two Swedishpension schemes, the Andra AP (AP2)and the Sjätte AP (AP6) Funds. Norr-porten has invested some 120 mneuros in a 30,000-sqm ensemble in theimmediate vicinity of the Speicher-stadt.

The letting business is still ratherslow – 35% of the Hamburg-America-Center has been let, 20% of the S-Kai,the Coffee Plaza is still conspicuouslyvacant. Mr Henriksson qualifies theserates: “The vacancy level across our entire portfolio of 1.1 mn sqm amounts to 3%. We’re still waiting forthe right client to match our mix who’swilling to pay what we need.”

“Honourable society”

The Swedes are biding their time tofind the right clients. “We meet our clients in person, go to a footballmatch or a concert. That’s how youbuild a personal relationship. Such arelationship is pleasant and importantin long-term cooperation.” Mr Hen-riksson says with a smile. “Further -more, the client will call me first whenthere’s a problem or when he or shehas a specific requirement for space.”The tall man from the north of Swedenhas found out where football is a spe-cial event in Hamburg. Mr Norrportenis a member of the “Ehrenwerte Gesell-schaft“, or Honourable Society, as isthe allusive name of an association ofsupporters of FC St. Pauli, Hamburg’slegendary club.

As soon as 60% of Norrporten’sstock has been let in this manner, MrHenriksson will look out for otherproperties in Hamburg. As in Copen-hagen, his aim is to reach a target ofabout 100,000 sqm to justify setting

Norrporten fact sheet

In 1994, Norrporten was spun off froma Swedish bad bank called Securumestablished in 1992. When the largestBank in Sweden, Nordenbanken(today’s Nordea), was nationalised dueto an impending collapse that was theresult of yet another burst real estatebubble, some 3,000 dubious (property)loans – i.e. 21% of Nordenbanken’sassets with a gross value of 67 bn Swed -ish kronor (then equivalent to 9 bneuros) – were taken over by Securum.

Securum soon created a large realestate portfolio through liquidations.Once a bad bank, Securum wentpublic with three real estate companies(Castellum, Pandox and Norrporten) in1994. Its IPO, criticised later on, cameat a time when property prices had notquite recovered but value increasesappeared on the horizon.

Norrporten (“Northern Gate”) ob -tained properties in central and nort-hern Sweden and moved into head-quarters in Sundsvall, central Sweden.Upon a successful offer to the share holders by NS Holding, whichwas headed by the Sjätte pensionscheme (AP6), Norrporten was takenoff the stock exchange in December2000. After the acquisition of prop -erties from the Vasakronan pensionscheme in southern Sweden, Norrpor-ten was held in equal shares by theVasakronan, AP2 and AP6 funds; realestate on stock amounted to 970 mneuros. In February 2006, AP2 and AP6purchased Vasakronan’s share.

Today, Norrporten owns 1.1 mnsqm in 140 properties with a lettingvalue of 150 mn euros and a marketvalue of 1.8 bn euros. Three quartersof Norrporten’s space is offices, 11%retail and 4% flats. Approx. 40% isrented by government institutions.Nearly all properties are located on theEuropean route 4. (ff)

up an office there. Moreover, the investor can imagine acquiring build -ings in uptown Hamburg, too. In anyevent, future acquisitions shouldinclude properties that can be suffi-ciently well let. (ff)

Thursday 11 März 2010

LÜBECK’S HANSEHAFEN

No loans for Icelandic DCPThe DCP investors from Iceland pulled out of the Hansehafen Lübeckproject in December 2009. Without apotential tenant or final investor, thebanks showed little interest in finan-cing it. If all had gone according toplan, an urban district would havebeen added to the northern part ofthe Wallhalbinsel peninsula for 160mn euros.

Franz Jezorski doesn’t want to washany dirty linen. “It will be the bestthing for everyone if the project isreturned to the local authorities tohave it devel oped by the KWL (the city’sreal estate subsidiary, editor’s note).”

Alongside Fridbert Fridbertsson andThorvaldur Gissurarson, Mr Jezorskiformed the Icelandic developers’ trioDCP (Development Construction Prop -erty). In December 2007, the Icelanderswon a bid for expression of interest indeveloping the northern part of theWallhalbinsel in the heartland ofLübeck. The concept, developed jointlywith the Danish architects’ office Årsti-derne Arkitekter, emerged as the winner,

beating ten competitors including theHamburg Garbe Group and the Lon-don-based SBRE/triple iii consortium.

DCP’s offer for the 6-hectare area,19.2 mn euros, is reported to have been900,000 euros lower than the high estbid, but the company made a commit-ment to plan and build 85,000 sqm ofgross floor space whereas other pro spec-tive buyers were only interested inmaking a purchase without any furtherobligation to build. Mr Jezorski empha-sises: “The prob lem was not our ownfinancial strength.” Talks with German

The design presented by LRW came second in the competition. Photo: KWL

banks stalled because there was no ten-ant or final investor and Lübeck doesn’tenjoy the reputation of a top locationfor real estate. “Moreover, the fact thatwe are from Iceland didn’t help us verymuch in the negotiations.”

Unfortunately, even before the creditcrunch, cooperation between the Ice-landers and the Lübeck locals was notwithout hitches. The meandering lay-out by the Danish architects and thelow extent to which local citizens andarchitects had been involved wereseverely criticised.

In response, DCP invested 100,000euros in a master plan competition. Since this resulted in a draw betweentwo winners, the jury decided in favourof a design presented by a workinggroup of architects, Brodersen and Ge -bauer/Wurck, Lübeck and Rotterdam,which was also the city’s urban plan-ners’ first choice, whereas KWL and DCPwould have preferred a plan by LRWArchitekten from Hamburg with a largernumber of smaller individual plots.

This is water under the bridge – anagreement was signed in February tothe effect that the first contract wasannulled. DCP received 250,000 eurosfor an expert opinion and the masterplan. Local authorities will now estab -lish a development company, to be runby the local government, to market the14 plots individually. As a result, we’llsee a third attempt to develop the nor-thern part of the Wall peninsula afterthe previous two have failed. The firstone was in the mid-1990s when a Ger-man-Swedish consortium planned toinvest 300 mn euros in 700 flats, retailand office space. (ff)

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FÜRST DEVELOPMENTS

Stuttgart Killesberg reloadedOn Stuttgart’s Killesberg, the Austrian investor Franz Fürst is real -ising his most important project foryears to come – a new urban quarterwill replace the old exhibition halls.The project required a long leadtime and a change of mindset.

The future of the former trade fairarea in Baden-Württemberg’s capitalcity on Killesberg hill has been in themaking for more than ten years. Since2004, the world has seen expert opin -ions, competitions and investors comeand go. In 2007, the Austrian project

developer Franz Fürst came into play.Not only did he create a master planbut also its implementation down tothe last detail has been in his handssince 2009.

Whereas fashion malls with a B2Bfocus have been or are still being con-structed in Salzburg, Munich, Frankfurtand at Zurich’s airport in Kloten, MrFürst intends to rebuild a whole urbandistrict in Stuttgart with a mix of usesthat will be colourful if not unique inGermany. Connected to a park and existing residential buildings, some50,000 sqm of gross floor space willchange the architectural fabric of theformer trade fair area and contributetowards a higher quality of life.

Inspired by Bauhaus models

A central complex including retail,doctors’ practices, restaurants, serviceproviders and offices will be as muchpart of this planned district as owner-occupied and rental apartments, a nur-sery, the Scenario design centre andgreen areas. Moreover, the Kunstakade-mie (Academy of Arts) will be involvedas Mr Fürst intends to sponsor a Students’ Gallery, and the Institute forTechnology in Arts, the first of its kind.The neighbouring Weißenhof areaboth inspires and obliges. Thus, MrFürst organised a “Union of Architects”with the most renowned architectsfrom Europe.

Mr Fürst’s creed: “I only do what I’mconvinced is going to work out, and Ikeep at it until I reach the finishingline.” Moreover, he underlines that hehas completed every single project he’sever started in his 30-year career even ifit took him years. Incidentally, this isthe case with the Killesberg project –planning activities have stretched overthree years and construction will takefour more years. “Most developersdon’t show up until an official landuse plan is presented. However, it’s toolate to come up with new ideas then”,

Franz Fürst from Austria has a master plan for the Killesberg in Stuttgart.Bild: Karin Fiedler

says the Salzburg native, speaking fromexperience.

What with the economic and finan-cial crisis, however, the prerequisiteshave changed for him, too, over thepast two years; he was required toadapt to his clients’ needs. As a conse-quence, the planned fashion mall turned into what will become the newbrand name – a different Scenario.

New brand name: Scenario

Instead of fashion, furniture andindustrial design will be showcased inthe design exhibition. Instead of optimising the amount of gross space,Mr Fürst intends to optimise benefitsin order to create a blend that will define “Stuttgart’s new spirit”. “If weoffer outstanding quality, people willvalue and appreciate it, and that’s thebest way to make sure property is notvacant,” says Mr Fürst. Even before

OFFICE MARKET

Investors go for the city of StuttgartIt was a twofold picture the marketfor office properties presented inBaden-Württemberg’s capital city in2009 – what with a reliable tenancymarket, the investment market was adisappointment.

Stuttgart is among Germany’s BigSeven cities with the best economicdevelopment opportunities and over500,000 inhabitants. And comparedwith other European growth regions,Stuttgart makes it into the top ten as ahigh-tech area. However, even theotherwise stable office market of Stutt-gart was affected by the global eco -

nomic and financial crisis in 2009,albeit not immediately. On a YOYbasis, the total tenancy volume dropped by about 13% and space turn -over amounted to 170,000 sqm.

Compared to the overall tendency inGermany, this is only a slight decrease,say the big local agents such as JonesLang LaSalle, Colliers Property Part-ners, the private bankers of Ellwanger& Geiger, and Angermann in their cur-rent market surveys. They report lateralmovement for office rents; the peakrent was at 17.50 euro/sqm and failedto hit the expected 20-euro mark. “InGermany, Stuttgart offers bargain rents

and high property prices,” says SandroCamilli of JLL Stuttgart. The marketknows little volatility but it’s predict -able, which is an asset.

As the demand for offices in the rental segment has been low, new projects have only been realised with adelay. Compared to the other six mostimportant local markets in Germany,the Stuttgart investment market performed worst in 2009. The totaltrans action volume decreased by 69%as compared to 2008. Most of the build ings on offer were existing ones. Investors focussed on core propertieswith low risk potential. New dynamics

construction work has begun, 63% ofthe commercial space has been let.There will be no exclusive focus oncost but rather a wider one that includes future space to live and workin.

Something that sounds easy is chief-ly due to the communicative skills theproject developer has. From day one,Mr Fürst conducted a dialogue with allparties in the local council, neighboursand the banks facilitating the 190-mn-euro project with loan commitments.

Mr Fürst finds words of praise for thelocal authorities of Stuttgart, includingits agency for economic development.Nowhere else, he says, would a lordmayor deal with large projects himself,would treasurers, building councillorsand party heads be informed in suchdetail. However, he adds, “It’s part ofthe deal that after a few years, every onewill only speak about the architect, notthe developer.” (dl)

are expected both on the investmentand tenancy markets in 2010/2011.

What with unbroken demand, there’s reason for hope, say the realestate agents in unison as they point tothe results Stuttgart has obtained in national and international leaguetables. Central Stuttgart in particular ison the wish list of almost all investors.Attractive office and retail propertiesare almost completed, while goodadvance letting rates can be expected.The urban development project Stutt-gart 21 is likely to further enhancelocal dynamics. (dl)

ANZEIGE

Unilever House, Hamburg

Germany’s bestProject Developer*

* “Euromoney”, 09/09: Real Estate Poll 2009”


INVESTMENT

Non-Germans appreciate Stuttgart’s stabilityAs ever, Stuttgart has remained inthe focus of foreign investors suchas Carlyle, Hines, Icade or CBRE.

2009, the year of the crisis, has beencrossed off while confidence has settled in for 2010 – to describe thesentiment on the Stuttgart investmentmarket in a nutshell. Basically, there’sno lack of demand but only one thirdof the 600,000 sqm of vacant officespace is in the prime locations investors long for. As for their countryof origin, it was players from Germanywho dominated the market in 2009 –since return rates were higher in otherparts of Europe.

How do the foreign leverage buyersof 2008 feel now? In recent years, areasin central Stuttgart were purchased onthe basis of market considerations thatno longer apply. For the time being,expected rents of 20 euros/sqm andover cannot be achieved. Icade fromFrance, which bought the former Mer-cedes showroom in Türlenstrasse, aproperty with a view to being part ofthe urban development project Stutt-

Stuttgart remains an interesting investment location. Photo: Stuttgart Marketing

gart 21. However, the main purpose ofthis building has been unclear for twoyears. Moreover, the Postquartier byHines, situated right next to König -strasse, Stuttgart’s main shopping street, had not been fully converted by

the end of 2009 so no-one could movein. The individual steps to refurbish ornewly build approx. 17,000 sqm ofoffice and just under 10,000 sqm ofretail space will only be decided onthis spring. And yet, Stuttgart, along -

side with Munich, tops Hines’s list ofthe most interesting German cities.

Wulf Meinel, Managing Directorwith Carlyle Europe Real Estate, seeshis company’s commitment in Stutt-gart through a similarly positive lens ashe takes into account strategic aspects.“The local market is just as interestingas it was two years ago.” Some 18,000sqm of office space is planned for con-struction on the City-Gate area nearthe central station. Its implementationwas postponed by a year. It is thedetails that are most difficult, i.e. it wasnecessary to re-work the user structure.The same holds true for CBRE whichacquired the former IBM headquartersin Stuttgart-Vaihingen in late 2007.Against the backdrop of the crisis,CBRE no longer expects to let the51,000 sqm of gross space on this cam-pus to just one tenant. Nonetheless,Americans consider Stuttgart to be a“very solid location”. Market playersagree that Stuttgart will confirm itsposition in the competitive field as itstenancy and investment market have aproven track record of stability. (dl)

ANZEIGE

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This is no coincidence, as the company’s strengths lie in its broad range of products and its flexibility on all real estate financing matters. Put your trust in HYPO INVESTMENTBANK – and contact Dr. Peter Wendlinger on +43(0)1/90110-1460 or at [email protected] to discuss the best financing solution for you.

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REAL ESTATE SHARES AND G-REITS

Gloomy days for stock exchange exits

Buying properties with bank loansand selling them on to equity investors via the stock exchangeused to be the name of the game.Investment banks and private equitymanagers considered G-REITS anideal vehicle for this plan. G-REITS,however, came unstuck.

Only those quickest off the markmanaged to get out in time. When thehedge fund manager Fortress began abuying offensive in German commer -cial real estate in early 2005, it alreadyhad a suitable receptacle – Eurocastle,listed at the London Stock Exchange.In late 2006, the Gagfah holding wentpublic in Luxembourg as an exit chan-nel for apartment binge-buyers.

As far as the exit via the stockexchange was concerned, Fortress’sconsistent strategy of avoiding Ger-many and ignoring any hopes of a Ger-man REIT, or G-REIT, was proven right.All private equity funds which aimedat an IPO in Germany had to give uptheir plans. The fund investor Oaktree,for example, was only able to offer its28,000 Gehag flats in Berlin to share -holders by adding them to its DeutscheWohnen already listed since the capitalenvironment was already too weak foran independent public offering of thisportfolio in summer 2007.

From the beginning, Oaktree intend -ed to put its commercial real estate onthe stock market through a REIT scheme. The Herkules portfolio, ac -quired from the German Deka fund forapprox. 1 bn euros in 2006, was sup-posed to serve as a basic stock. Lateron, another package bought from Degifor 600 mn euros was added.

The US-based group is still sitting onthis 1.7 bn euros but it seems it hasn’tgiven up its REIT plans yet. As we havebeen informed by a person close to thecompany, Oaktree considers 2011 thenext possible time window for an IPO.The worst effects of the crisis will havepassed and an economic upturn willappear on the horizon.

The Pollux building in Frankfurt (on the right) was part of the Herkules portfolio that Oaktree bought from Deka. Photo: Fotolia.de/FrankfurterBub

ANZEIGE

Apparently, Oaktree sees itself in amore comfortable starting position thanits competitors from the private equityscene. With a loan ratio of under 70%,its portfolio is financed more conserva-tively than those of its peers. Throughissuing a REIT with a maximum loanratio of 55%, only a small proportion ofthe shareholders’ capital would go tothe banks – that’s the basic idea.

A Herkules REIT would benefit thesector and give it the little push it sourgently needs. To date, only threecompanies (Alstria, Fair Value, Ham-borner) have put G-REITS onto thestock exchange. Their total marketcapitalisation amounts to approx. 700mn euros. The G-REIT – yet anotherstockbrokers’ dream that hasn’t cometrue. Only a few years ago, lobbyistswere dreaming of a German REIT mar-ket with a volume of more, maybeeven much more, than 10 billion. It’sall water under the bridge.

Oaktree clinging to Herkules REIT

Nothing like it ever came about, notleast because the German governmentinsisted it wouldn’t rubber-stampREITS with existing apartments alreadyheld by investors, which put an end tomore than one exit scenario. In thissituation, many financial investorswere losing patience with their stockexchange plans for housing trusts theyhad acquired anyway. Originally, Cer-berus and Morgan Stanley wanted tosell on their housing trusts Baubecon(20,000 units) and Immeo (48,000flats) via capital market instruments.When it became apparent that thismodel wouldn’t live up to its expecta-

tions, they solved the exit issue by sel-ling these packages to other foreigninvestors. Baubecon is now managedby a joint venture of Pirelli and Rreef,a subsidiary of Deutsche Bank (sellingprice: 1.7 bn euros) whereas the40,000 remaining apartments ofImmeo is held by the French REIT Fon-cière des Régions.

Foreigners buying from foreigners

Notwithstanding, Cerberus (and itsco-investor, Whitehall Funds) hasn’t yetshelved plans to offer its oldest housingtrust on stock at the stock exchange –behind the scenes, experts have beenprobing into opportunities to put theGSW trust in Berlin – with 65,700units – on the capital market in the nearfuture (see also article on p. 17).

Foreign buyers who opted for thesupposedly easier route via tax havensand the relatively unregulated AIM seg-ment of the London Stock Exchange toliquidify their investments weren’t anyluckier, either – their shares have hitrock bottom and are now considered“opportunistic investments” them -selves. Dawnay, Day (today’s Treveria)and Develica Deutschland are pennystocks. Puma Brandenburg has beentaken off the stock exchange by itsinitiators.

In late 2009, the international inves -tors’ consortium BSGP acquired Deut-sche Land AIM shares for some 42 mnGBP. Deutsche Land’s gross propertyassets are valued at over 500 mn euros.You wouldn’t say you can’t make a bar-gain with German real estate on thestock exchange… (mol)

A Development of

MIPIM AWARD 2010

Your vote for theMarco Polo Tower in Hamburg

nominated for

marcopolotower.com


HARVEST UNITED ENTERPRISES

New York-style luxury by the Berlin SpreeAs one ambitious major project afteranother is put on ice around theworld, the investor Harvest UnitedEnterprise from Abu Dhabi is work -ing practically around the clock onits hotel project Zoofenster (devel -oped by Swan Operations) in down-town West Berlin. Time is of theessence here – the Hilton Groupplans to open its five-star-plus Wal-dorf Astoria in just over a year.

The bitterly cold winter has beentough on the builders. But this is notime to falter. While the thermometerfalls below minus ten degrees Celsius,the cranes on the Zoofenster construc-tion site are hard at work. “The con -crete is delivered pre-heated,” explainsKlaus Obendorf, Project Manager forthe general planner BIC, Berlin. Theworkers just have to cover the top floorwith plastic sheeting as best they can,“and we blow hot air into the plankingfor the concrete,” his foreman adds. Afreezing wind blows through the futurelobby. Clumps of ice crackle under themen’s feet as they say with a hint ofembarrassment: “How much electricitywill it cost in the end? Don’t even ask.”

Unlike the original plan, the Zoo -fens ter won’t be purely a hotel. The242 suites will be flanked by officesand a small amount of retail space. Theinvestors have also extended the pro-ject to a neighbouring plot, with anadditional building by the name ofZoo Triangel.

Harvest United Enterprise’s invest-ment in this central location in WestBerlin puts an end to a long and inglorious story surrounding theZoofenster. In the early 1990s theDortmund beverages group Brau undBrunnen promised to build a newarchitectural attraction on the site by1995. When that fell through the Col -ogne-based property group Dr. Ebertz& Partner entered the fray in Septem-

IZ: You’ve signed a management con-tract with Hilton, as is common in theindustry now rather than leasing the build ing. Was there no other option?

Brunet: We spoke to three operators,and Hilton had the most suitablebrand for us, Waldorf Astoria. Manage-ment contracts have been standardpractice in the Emirates for years, bythe way. So the principle doesn’t pre-sent any problems, but the conditionsare negotiated all the more strictly.

IZ: Are you planning to sell the building?Brunet: No, not at all. Why would

we? Berlin is a great city and theZoofenster is a great investment.

IZ: Thank you for the interview.Patrice Brunet was interviewed by

Gerda Gericke.

The scheduled completion date for the Zoofenster is March 2011. Photo: Mäckler

Patrice Brunet. Photo: Swan

ber 2001. The group failed to deliver,whereupon Trans Arab Support Ser -vices (Tass) from the United Arab Emirates took over but failed to payup, so Dr. Ebertz bought the projectback again. In the meantime, however,all the prospective hotel oper ators,includ ing the Hilton Group, had madefor dry land.

In September 2007 Harvest boughtthe 2,400 m2 plot for the Zoofensterand later also acquired the Triangelland. And as Klaus Obendorf and hismen have not yet frozen in the ice-coldEast German winter, and gigantic elec-tricity bills are still more economicalthan construction delays in this dayand age, the topping-out ceremony willbe held in August 2010. A good sevenmonths later, Hilton will be able tooffer the same luxury in Berlin as in itsworld-famous parent hotel in NewYork. (gg)

See also the interview below.

BERLIN

“We don’t need banks” A relaxed chat over espresso in thelobby of one of Berlin’s finest hotels.The charming Frenchman PatriceBrunet, General Manager of SwanOperations, Abu Dhabi, explainswhy his client is building with Zoo -fenster an even finer hotel – and cer-tainly won’t be making an early exit.

Immobilien Zeitung: Monsieur Brunet,many foreign investors in German hotelproperties are currently in major financialdifficulties. They’re just managing to makeoperative profits, with interest and repay-ments for the necessary loans stalling…

Patrice Brunet: Really? Well, thatcan’t happen to us. The investor Har-vest United Enterprise doesn’t need

banks. We finance all our projects entirely out of equity.

IZ: Lucky you. But the families behindthe company want to see their capitalincrease as well. What kind of returns areyou expecting?

Brunet: We anticipate a return of 5to 6 %.

IZ: Isn’t that very optimistic? Somesceptical observers think there’s no roomon the market for a second super-luxuryhotel in Berlin alongside the Adlon.

Brunet: The room prices in Berlinare very low for a European capital.We’re anticipating rising prices over theyears. And 5 to 6 % is more than youcan make in London and Paris at themoment. That’s partly because the landwas very inexpensive.

Zoofenster and Zoo Triangel

Investor: Harvest United Enterprises, Abu Dhabi/U.A.E.

Investmentvolume: 210 mn euroLocation: HardenbergstrasseArchitect: Christoph Mäckler

Architekten, FrankfurtHeight: 118.80 m

Floor spaceHotel: approx. 23,500 m2

Offices: approx. 7,100 m2

Retail: 675 m2

DatesConstructionstart: 2009Completion: 2011Contractualterm: 22 years


MIPIM 2010 – DG HYP welcomesyou on board the Star of the Seaat ”Jetée Albert Edouard“.

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Phone +49 40/33 34-0 | Fax +49 40/33 34-1111

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Meet our crew at MIPIM.

Dr. GeorgReutterSpokesman ofthe ManagementBoard

Hans HenrikDige

Head ofReal Estate

Centre Hamburg

MatthiasWeimerHead ofReal EstateCentre Düsseldorf

Matthias TillHead ofReal EstateCentre Frankfurt

Martin GimberHead of

Real EstateCentre Berlin

Mark MeissnerReal EstateCentre Berlin

Harald AlberHead ofReal EstateCentre Stuttgart

WolfgangBerchtold

Head ofReal Estate

Centre Munich

Ronald VetterCross Border

Jean BardenHead of

New YorkRepresentative

Office

ThomasNeumann-

ViewegCross Border

Manfred SalberMember of theManagementBoard

Axel JordanHead of

National Business

Steffen GüntherHead ofInternationalBusiness

Sally HurstLondonRepresentativeOffice

Anja BühnHead of

SalesManagement

AndrewGoodbody

Head of LondonRepresentative

Office

Dr. CarstenMeyer-RavenChiefRepresentative

Jan BleyderLondon

RepresentativeOffice

Anne-IsabelleCarbonnieresHead of ParisRepresentativeOffice

Marek Buzekdesignated forPoland

Lorenz MerkHead ofScandinavien Desk

Verena QuastHead of

Credit RiskManagement

Europe

Paul TewesVR WERT

CharteredSurveyor

ManagingDirector

BarbaraBanschbachVR WERTSenior Surveyor

Dieter PieperVR WERTSenior Surveyor

Investing in Germany 2010

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Transcript of Investing in Germany 2010