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Property Management in Germany

MIPIM 2011

Immobilien Zeitung at Stand R 31.41

March 2011



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The German Wunderkind PHOTO: REED MIDEM

Economists predict upwards trend for Germany. PAGES 4 – 6

Filippo Rean is Mipim’s new head. Who is this man? PAGE 27

What on earth is up with Germany? Usually Europe’s prime curmudgeon and top penny-pincher, the country’s suddenly in a conspicuously buoyant mood – with good reason. Employment has remained stable despite the financial crisis, and growth prospects are already positive again. Many investors are placing their hopes in Europe’s former economic bore. The German Economic Minister’s smile has got broader and broader every time he’s talked about the domestic economy over the past few

months. “People admire us Germans for how quickly we’ve emerged from the crisis,” Rainer Brüderle told journalists from Spiegel magazine at the World Economic Forum in Davos. “There’s huge international interest in how we managed it.” And the German real estate market is enjoying re-awakened international interest too. No matter which investor surveys you consult – by Ernst & Young, KPMG or Union Investment – they all come to the same conclusion: Germany will get even more attractive compared to other core European markets in 2011. Prices for A1 properties are set to

rise, as is the transaction volume in the commercial and residential real estate sectors. But what lies behind this mass outbreak of optimism? “Investors like to go where economic growth is highest at any given moment,” explains Stefan Wundrak, Research Manager Europe at Henderson Global Investors in London. “In the past that meant Spain and Ireland, and now it’s Scandinavia and Ger many.” That trend could take a turnaround if growth rates shoot up elsewhere in Europe. “But that’s not on the agenda anywhere right now.” Continued on page 3


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Allgemeine SÜDBODEN Grundbesitz AG Project „Neue Balan“ € 102.5 million

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Catalyst European Property Fund LP Stratford Shopping Centre £ 59.5 million

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Refinancing Loan Central Eastern Europe December 2010

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Thursday 3 March 2011

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The German wunderkind What’s making German GDP rise:

Export and investments on the up 5% 4% 3% 2%

end of 2010. That puts them almost on a level with Paris (4.75%). Stefan Wundrak recommends investors concentrate on office space where tenancy contracts are due to expire within 24 months, or seek out refurbishments and other projects. “That way, you can profit from rising rents in the future.” His tip is to go for retail properties where the frequency can be raised by attracting new, expansive store concepts: “Then even an initial net yield of only 5% can turn into a good growth story.”


Watch out for a bubble 0% -1% Government consumption -2%

Private consumption Investments


Replacing stocks Net export

-4% -5%

Real GDP % comp. to previous year 2008


But Andreas Schulten, Member of the Board at the leading real estate market researcher BulwienGesa, warns investors not go overboard with their optimism. Markets, he says, “tend to react emotionally.” And emotions are currently caught up in the euphoric mood of the past few months. Schulten therefore doesn’t want prices to climb any further. When agents start invoking ROS rates of 4.5% for a speculative new Frankfurt office tower, as


© Immobilien Zeitung; source: Deutsche Bank Research


First and foremost, it’s German consumers who are firing investors’ imagination. While the sales growth expected in Germany’s retail sector for the coming years is hardly gigantic in real terms at approx. 1.7% p.a., it’s looking pretty good in comparison to previous years (0%). Deutsche Bank researchers anticipate an upward curve for private consumption, by 1.25% in real terms – a result of constant employment growth and a fall in the unemployment rate “towards 7%”. That’s a model labour market development in comparison to the rest of Europe, say the bank’s economists.

“Germany produces things people really want to have.” Stefan Wundrak

So it comes as no surprise that retail properties in particular are putting a sparkle in investors’ eyes. This year’s survey by the European fund association Inrev saw German retail property overtake the previously dominant British retail estates in the race for most popular target among fund investors. Compared to the past two years that was a “dramatic change in perception,” Inrev comments. The sector didn’t even make the top ten in 2010.

“Investors have faith in the solid economic basis of German growth prospects,” says Henderson researcher Wundrak. “Germany produces things people really want to have.” The German labour market has been criticised for years for its under-developed service sector in comparison to Britain, “and now England is mourning having given up its production industry without a fight – along with the jobs it provided.”

Housing market on the up Fear of inflation and low interest rates have also given an unexpected boost to the German market for residential properties to buy. Whereas house prices doubled in Spain and Britain over the ten years up to the financial crisis, Germany suffered stagnation. But suddenly market players are talking about bidding battles over apartments in the economically stable cities, and demand for rented multiparty buildings in good locations is now outstripping supply. Estate agents celebrated two-digit turnover growth rates on their 2010 books. And they’re sure of rising purchase prices and new tenancy contracts in the current year too (see page 14). While there’s plenty of scope for price rises on the housing front, levels for high-quality commercial properties in Germany seem to have reached a plateau (see page 13). According to BNP Paribas Real Estate, top offices in Frankfurt and Munich were on offer for net initial yields of less than 5% at the

rumour has it for the 60,000-sqm project TaunusTor, that’s the end of the line for him. “I think the price level for German prime properties is right on target at the moment. But if Germany gets more popular and investment pressure increases, I fear the beginning of a new bubble.” There are similar clouds on the horizon for Frank Billand, Managing Director of the property fund manager Union Investment Real Estate. For the German open-ended real estate fund, a heavyweight institutional investor with impressive purchasing power, foreign investments will become less attractive from 2013 because of new legal parameters. That will mean investing more capital at home. “Competition on the German market will grow,” predicts Billand. “And that could lead to price rises again.” Henderson researcher Wundrak won’t rule out new price bubbles for German office and retail properties either. “If interest rates stay at this low level another year, we may well face overheating.” (mol)


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Reforms have caused the Michael Heise predicts good years to come for Germany. For the foreseeable future, Chief Economist expects an annual growth rate of 2%. According to him, the inflation rate is going to remain low and unemployment is bound to decrease. As far as real estate investments are concerned, he believes there’s a potential for higher rents and prices. Heise says there’s no miracle involved, although people across the world are surprised to receive such positive news from Germany. Immobilien Zeitung: Mr Heise, you believe the euphoria about strong economic growth and more jobs in Germany is exaggerated. Why? Michael Heise: Germany has certainly become more competitive – economically speak ing, the country is in better shape and has emerged quite un scathed after the f i n a n c i a l Michael Heise, Allianz Chief crisis. But this is far from being a miracle to cause euphoria. The current recovery is only a bounce after the slump in 2009. At the bottom line, Germany isn’t actually beating many other nations when it comes to economic growth. It’s just that the slump in Germany was much deeper than in, say, France. Similarly, the upwards trend is stronger in Germany now, too. IZ: Some 3.6% of economic growth in 2010, and there’s a prospect of less than 3 mn unemployed – these are the best figures we’ve had since the early 1990s! Heise: Okay. The present admiration for Germany is also due to the low growth rates we’d been used to for the preceding 15 years. Abroad, we’ve often been perceived as not very competitive and unwilling to undertake reforms. Consequently, it comes as a bit as a surprise for some observers to receive so much positive news from Germany now – Germany, of all places.

Eiffel Tower, Paris

Heise praises the grand coalition’s crisis management

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IZ: But you aren’t surprised, are you? Heise: There are absolutely factual reasons for this upwards trend. The labour market and welfare state reforms of the Agenda 2010 project under the former Chancellor Gerhard Schröder made a major difference. These reforms improved the shock absorption capacity of the German labour market to a large extent. Furthermore, the bargaining process has changed. National agreements for en-


Photo: Allianz

tire industries have been largely re placed by individual contracts between companies and their workforce. This has made the German economy more flexible and resilient. And even the Grand Coalition (translator’s note: the coalition between the Christian Democrats and the Social Democrats, in government until late 2009, with Angela Merkel as Chancellor and Peer Steinbrück as Minister for Finance) contributed to today’s good news with its crisis management.

Short-time work schemes impress even the US IZ: Are you referring to the extension of short-time work (translator’s note: subsidised schemes to reduce working hours but keep people in gainful employment)? Heise: I believe short-time work has a proven track record. At the beginning, I myself doubted its use. But it has worked, and it’s received much attention abroad, even in the US. And rightly so. IZ: The crisis was overcome with high new public debt. Is the upwards trend just a boom on tick? Heise: As a matter of fact, high public debt does entail risks but I think we can contain the amount owed. Its ratio to the gross domestic product is what counts. I believe it’s quite possible to push accumulated public debt down from 80% of the GDP towards 70% in the next years. (Continued on page 5)

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3 March 2011

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boom, not miracles! IZ: The Maastricht criteria stipulate 60% as a default target. Heise: True, and it’s realistic. All we have to do is keep the increase in public spending one to two percentage points below GDP growth. If GDP grows by at least 4% p.a., adjusted for inflation, we’ll be on the right track. IZ: The Merkel/Steinbrück government duo once assumed that the 2006/2007 economic boom would continue forever – and were wrong. What indicates that we are really going to see a few good years more this time? Heise: For the next five years, I’d say the economy will grow by 2% p.a. on average. Maybe even slightly more. This will suffice to push unemployment rates further down. On that note, we can’t be sure how the emerging markets will develop, especially China and India, and if the oil price will go through the roof. Many circumstances, however, indicate that the global economy is set to stay on its growth course. Which will also benefit Germany. IZ: What are the implications for investors interested in German real estate? Heise: They can expect higher rents and prices – not least because the more positive image Germany enjoys has already led to more foreign investment in this country. IZ: But what would the benefit be for a real estate investor if the manufacturing sector invests in equipment again and if that is the main growth driver? Heise: The demand for space is set to rise. Many service providers and retailers intend to expand. As for service providers, I don’t just mean industries that are very close to the actual economy but also players in the fields of leisure, culture, education and healthcare. During the crisis, these industries have remained largely stable. They’ll create a fair share of jobs. IZ: The German population is predicted to shrink drastically. Not good news for real estate buyers! Heise: It’s going to take some time

until the demographic trend will impact on the real estate sector. For the time being, there’s still a high demand for new housing by Germans who can afford to live in larger homes, and I expect this is a likely tendency for immigrants too. The odds are high that apartment rents will rise by 2% to 2.5% p.a. in coming years, which would exceed the expected inflation rate. For the next ten years, inflation should remain at 1.5% to 2% per year.

Inflation rate won’t exceed 2% per year IZ: Are you really serious? Heise: I know some people are depicting doomsday scenarios of galloping inflation or even currency devaluation. I don’t believe their prophecies at all. IZ: But if you simply look at the costly incentive packages for the economy and the high public debt, even many economists think that significant inflation will be unavoidable. Heise: I disagree with them. The pressure on prices will stay high. Companies will not have much power to impose higher prices on anyone. We can’t expect wages and salaries to spiral upwards either. Also, I believe that central banks will remain independent and keep inflation rates at no more than 2%. IZ: If that is so, why is everybody investing in residential properties now? Heise: Quite possibly, some players are trying to scare off inflation ghosts like that. However, many buyers simply use residential buildings to provide something much simpler – an income for their old age. This trend would only finish abruptly if interest rates were to rise substantially, but I don’t see such a thing coming up on the horizon. IZ: Mr Heise, thank you for this interview. Michael Heise was interviewed by Bernhard Bomke.

Gross domestic product and unemployment rates in Germany: 5




















-5 1 2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Unemployment rate in %2

YOY change in %1

A steep rise after an even steeper fall


Gross domestic product, price adjusted, YOY change in %; Unemployment rate in %; © Immobilien Zeitung; sources: Federal Office for Statistics; Federal Employment Agency

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Thursday 3 March 2011

TAKEOVER ATTEMPT BY ACS The Economist on the balance of power between Germany and France in the European Union, 9 Dec 2010

(...) The balance of power between the Franco-German pair that have dominated EU policymaking has shifted across the Rhine. The euro-zone debt crisis, during which all eyes have been on Germany, exposes this cruelly. On the fundamental elements – a permanent post-2013 debt-crisis mechanism, a treaty change to enshrine it in European law, tougher rules and sanctions for rule-breakers, no enlargement of the bail-out fund – Mrs Merkel has got what she asked for, while Mr Sarkozy has been stuck on the sidelines. (...) Germany is reaping the benefits of years of wage moderation and labour-market reforms that improved its competitiveness. (...)

Larry Elliott on the strongest economic growth in Germany since its reunification, 12 Jan 2011

What is the explanation for this? The pat answer is that it is all about China, with Germany simply the European outpost of the east Asian growth miracle. (...) The export boom has been given added strength by the problems on the eurozone’s periphery, which have led to a drop in the value of the single currency on the world’s foreign exchanges. That has made German goods even more competitive. But the idea that Germany’s strong performance in 2010 was down to fortunate timing is nonsense. (...) Germany has realised that the secrets of success are hard work, ferocious quality control, reliable long-term sources of finance and co-operation between policymakers, companies and trade unions. (...) There is, though, one caveat to this success story. Germany’s growth is unbalanced (...). This matters, not just for the weaker countries of the eurozone which have been unable to live with Germany’s hyper-competitiveness, but for the global economy as a whole, where the imbalances between the big exporters and the big importers have started to widen again. (...)

The Vienna economist Stephan Schulmeister on the effects of the euro crisis, 17 Dec 2010

(...) Financial investors have taken refuge from loans in “problem countries”, changing their course towards German government bonds. As an effect, interestrate levels in these countries are set to rise whereas they are bound to drop in Germany. The debt crisis weakens the exchange rate of the euro, which will benefit the “world export champions” more than anyone else. In the short term, it seems that Germany will eventually be rewarded for its discipline. Alas, it’s a false impression – since the “interest rate virus” is bound to spread, the German economy will be severely affected too. (…) There will be two main effects: German exports will be weakened proportionally to the size of the affected economies. And: The larger the volume of rescue packages, the more serious doubts will be in the financing capacities of Germany.

Hochtief attracts investors With the announcement that it intends to take over the Essen-based construction group Hochtief, the Spanish building company ACS caused a huge stir on the German market. After all, the German top player would then be controlled from Madrid. Europe would have the largest conglomerate in the construction sector it’s ever seen, and Germany, the country with the largest building industry by far in Europe, would have only one company left among the top ten on the continent, Bilfinger Berger (which would come tenth in the league table). On the other side, takeover conditions are favourable for ACS. Hochtief has virtually invited investors to place a bid – the company is nearly free from net debt, it successfully operates on an international level and has an annual result target before tax of more than EUR 1 bn for the next years. However, this has had no effect on the stock exchange – Hochtief’s Australian subsidiary Leighton (Hochtief holding 54% of its shares) alone has a stock exchange value which almost doubles that of the parent company (approx. EUR 4.5 bn). By contrast, ACS’ annual statements include net liabilities of approx. EUR 10 bn. If ACS manages to extend its share to more than 50% it will be able to reduce its debt through consolidation since it would be offset by Hochtief’s asset base. Additionally, ACS would release potential reserves by splitting up the Hochtief group, says Axel Schäfer, a building sector expert

Internationally successful, no net debt, undervalued at the stock exchange – Hochtief, based in Essen, is a welcome takeover candidate. Photo: Hochtief

from OC&C Strategy Consultants Deutschland. According to him, ACS could compensate for its own weakness – too much focus on the home market – by adding the Hochtief portfolio to its own activities and matching the needs of a market that is calling for more and more internationalisation, adds Marc Gabriel, analyst from Bankhaus Lampe. Furthermore, there are only few overlaps of operational regions between the two companies. According to a study by the Munich ifo institute called “German building companies – no penchant for scale” (published in German), German stock corporations including Hochtief have no possibility to fend off a hostile takeover by restricting voting rights or capping the amount of shares held by single shareholders under German

takeover law. Industry experts expect that the number of M&A transactions is set to rise again this year, given the economic recovery and increasing turnover figures for companies. Against this backdrop, other German companies can become takeover candidates like Hochtief – or go on a shopping spree themselves. For example, Bilfinger Berger, Germany’s number two player after Hochtief, announced the sale of its Australian subsidiary Valemus in late 2010 for 2011, Q1; prospective buyers: the construction and real estate group Lend Lease. Mannheim-based Bilfinger Berger says it intends to invest the earnings from this disinvestment in further extending its service portfolio. Logically, this would imply additional company purchases. (tja)


“Debt crisis benefits German real estate” Prof Wolfgang Wiegard, a member of the council of real estate experts and a former member of the federal government’s Expert Council for Economic Development, sees positive prospects for the German real estate industry. The debt crisis is changing international payment flows, which will specifically benefit German real estate. “All indicators point to positive development,” Wiegard writes in a report submitted by the Council of Real Estate Experts, published by Immobilien Zeitung and the German Property Federation (ZIA). According to him, gross domestic product and available private incomes are set to rise, and despite a minor increase, interest rates are to remain on a relatively low level in 2011. Above all, however, international payment flows will change direction, which will benefit Germany.

Wolfgang Wiegard. Photo: Alexander Sell

In recent years, interest rate cuts in former high-interest countries like Spain or Ireland triggered an invest-

ment boom that made itself strongly felt in the real estate sector. Wiegard points out that part of the funds were German capital exports. “Loans were granted to Spanish real estate companies, and investors bought asset-backed securities in the US.” Towards the end of the financial crisis and in the wake of the debt crisis, this trend was bound to stop, Wiegard says. The market for securitised property loans has collapsed, real estate bubbles in Spain, Ireland and the US have burst and capital demand in these countries has come to a standstill, especially in the real estate sector. Lacking other investment opportunities abroad and due to higher risk mark-ups for foreign investments, the earlier capital outflow from the system will be used to invest in Germany to a greater extent, Wiegard expects. “A substantial part of it will go to the real estate industry.” (pm)

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Thursday 3 March 2011


Woolworth is reinventing itself Woolworth has disappeared in the US, while in Germany the department store chain is experiencing a comeback. Discount store expert Dieter Schindel is reinventing the brand with a substantially reduced assortment, minimum staffing and money from two entrepreneur families. What would Franklin Winfield Woolworth (1852 – 1919) have said about the shops in Unna, Gera and Karlsruhe that bear his name? No matter what, Woolworth’s founder would be proud because a low-price department store can incorporate a viable business concept even in the 21st century – at least in good old Germany. Cheap, that’s what Germans are good at. Against this backdrop, it’s no wonder that the people who have shaped the new Woolworth Deutschland (independent from the US business since 1998) are mad for discounts. Stefan Heinig, the founder of low-cost store chains KiK and Tedi, and Karl-Erivan Haub whose family owns the Tengelmann group (KiK’s majority

A Woolworth’s in Unna (North Rhine-Westphalia)

shareholder) took over the insolvent Woolworth in summer 2010. Heinig and Haub contracted Dieter Schindel as the company’s top exec, a man who made KiK explode from nil to 3,000 outlets. With him, Woolworth intends to open one store per week on average in 2011, and what’s more: they want to turn Woolworth into a flourishing brand after years of ailment. “We’re there for quick supplies rather than for a shopping experience,” says Schindel about his strategy. Schindel – a South Africa fan – has drastically narrowed the assortment from 20,000

Photo: Woolworth

articles to 6,000. He chucked out sports articles, outdoor shoes, newspapers, goods on commission, alcohol and multimedia, which left two core fields – hardware and household goods (65%) and textiles (35%). “We need to focus on basics,” says Schindel. Jobs have been cut to a minimum – in each store, there’s only one FTE. Unfit branches – too small, too large – were disinvested, unneeded space returned to the landlords. Lucky for Woolworth: The most important lessor, Cerberus financial investors, backs Woolworth’s plan. In future, the minimum size of a

Woolworth store will be 1,000 sqm, the upper limit being 2,000 sqm. “A place like Meschede doesn’t need a 9,000-sqm department store,” says Schindel, referring to oversized retail properties in many German cities. But don’t compare the German concept with its South African Woolworth counterparts: “In South Africa Woolworth’s is a textile store somewhere between Peek & Cloppenburg (translator’s note: a mid- to upmarket German chain) and C&A”, says Schindel. While another department store patient, namely Karstadt, is still in rehab Woolworth is already out of hospital again. Some 40 tenancy contracts have been signed for the current calendar year. Woolworth in Germany – a company left with 158 department stores and 4,300 employees after insolvency proceedings – now boasts 166 stores and 5,500 employees. Its owners believe the market holds sufficient potential for 500 stores. But that’s not where the story has to end – after all, Woolworth Deutschland holds the rights for the whole European Union except the UK. (cvs)


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Thursday 3 March 2011


Anti-crisis legislation and tax relief? Nothing! Germany’s Chancellor Angela Merkel relentlessly emphasises what’s been achieved under her government. But if you look at the world of real estate and wonder if it received any support through legal adjustments or tax relief, you won’t be able to find anything beyond the immaterial. Investors have begun to show new interest, financing schemes have become available again, the industry has become somewhat optimistic. A result of clever politics and smart lawmaking? No.

A neglected sector Mathias Müller, President of Frankfurt’s Chamber of Industry and Commerce, clearly states: “I know of no legal or fiscal changes with a significant impact.” He believes that politicians are treating the real estate business with disregard. There’s only one political measure Müller remembers: “At least we’ve had some economic incentive packages to help the construction industry and its suppliers.” However, he doubts this has been sufficient to develop genuine upturn dynamics: “The market regulates itself, and investment goes to regions where the economic conditions are in order and return prospects are good. In the housing sector this is true for Frankfurt and Munich, for example.” Speaking of housing, it’s the topic Falk Schollenberger and Konrad Kanzler have specialised in. They both work with the NAI Apollo Group, Schollenberger as a Managing Partner and Kanzler as Head of Research. In their view, there’s been no support for the real estate market – quite the contrary. Land transfer tax increases in various German states and energy-saving regulations resulting in higher costs for new buildings are two factors to slow down economic recovery, says Kanzler. But: “The market has successfully responded to them,” says Schollenberger. According to him, “bricks and mortar are sexy.” The two experts say the market for private investment was subject to turbulent dynamics last year, with many pur chases in large cities. Schollenberger asks: “Do we really want policy-makers to interfere with the market by law?”

Statutory help for the real estate industry wasn’t quite on the Bundestag’s agenda during the crisis. Photo: Deutscher Bundestag/Werner Schüring

Axel Kunze, a Partner in the Berlin branch of the Squire, Sanders & Dempsey law firm, has identified at least one incentive by the lawmakers: “The reduction of VAT for hotels had an immediate positive effect.” As a matter of fact, there was a nominal turnover rise of 7.1% for overnight stays during the period from January to November 2010 (calculated on a YOY basis). “According to the industry’s association, Dehoga, we saw the highest growth rate since 1994.” In 2010, he received numerous requests for consultancy services in connection with hotel projects. “Our clients were interested in both, new construction and purchases.”

an interest rate of 6% p.a. and still deduct interest as operating expenses.” Additionally, there is one “crisis law” on Hoppe’s list (although it’s of minor effect): “Granting groups of companies an exemption from land transfer tax under section 6a of the Land Transfer Act was at least helpful.” This way, a privilege was created for restructuring such groups; they are not subject to land transfer tax if they consolidate. However, he concedes that this hasn’t brought about any relevant growth. One of his peers from Cologne, Gunnar Knorr of Oppenhoff & Rädler, harshly criticises the Federal Ministry for Finance (BMF): “Tax subjects are given stones for bread,” is his verdict,

because the BMF is sticking to the rules like barnacle to a ship. Knorr speaks from experience: “In 80% of all cases, land transfer tax is due although the government wanted to facilitate restructuring to allow for more economic growth.” Knorr believes that the market has come to new life for other reasons: “Money has become more available again, there’s more pressure on those willing to sell, sales have to occur by certain deadlines, companies have more leeway and their latest annual statements aren’t quite as bad as before.” Bottom line: “The legal framework conditions haven’t been helpful but they haven’t been detrimental either.” (ba)

Little help to no avail Matthias Hoppe, legal counsel and tax advisor at Wilmer Hale, Berlin, doesn’t see any major help from the government. “Unfortunately, there’ve been no simplifications especially in tax law.” But: “Raising the allowance for the interest-rate barrier from EUR 1 mn to EUR 3 mn is relief, especially for small and medium-sized companies.” Here’s his calculation: “Through this new rule, I can take up a loan over EUR 50 mn at

The Federal Ministry for Finance is giving real estate companies a hard time rather than helping much. Photo: Röske


Munich the most expensive location Not only are store rents highest in Munich, shops in central locations of the Bavarian capital yield the highest turnover per sqm. Retail rents of up to EUR 310/sqm are paid for the most coveted shops in Munich’s pedestrian zone, which places it in 10th position worldwide (source: Cushman & Wakefield), in pole position in Germany. According to Comfort agents, space productivity between Marienplatz and Karlsplatz (EUR 6,540/sqm p.a.) is highest in Germany, too. The yardstick value for one sqm of developable land in the pedestrian zone was EUR 50,000 in late 2008 – another German record. Not least, the demand from inter national retail chains (Abercrombie & Fitch, Urban Outfitters, Apple etc.) has brought about constant fierce competition. The same holds true for Berlin, Dusseldorf, Hamburg, Cologne and Frank-

furt. “Tenants are even willing to make one-off payments for existing tenancy contracts,” says Christoph Scharf, Head of Retail Letting at BNP Paribas Real Estate. (cvs)

Retail properties:

Current return rates Type of property

Return rate in %

Shopping centres


Food stores (stand-alone)


Large-format retail (e.g. DIY stores, hypermarkets)


Inner-city retail properties, premium locations


© Immobilien Zeitung; source: Cushman & Wakefield

e Katowtoic wice

a y Center, K Silesia Cit

r ping Cente Type: Shop 0 m² Size: 66,10 r • Sole Lende Arranger


orfer W elle Berlin

Type: Sh opping C enter Size: 22 ,500 m² Agent • U nderwrite r

Waterm a

rk Plac e London

Type: O ffic Size: 50 e Building ,000 m² Agent • Underw riter

Le Delta

u athemnMaain R s i a l ta Pa rankfur F

Boulogne-B illancourt Type: Office Building Size: 22,200 m² Mandated Le ad Arranger • Lender Hedge Provi der

d Office etail an Type: R 00 m² Size: 1,0 ender Single L

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Page 12

Thursday 3 March 2011


Business on a roll Germany has many roads, and theyâ&#x20AC;&#x2122;re normally full â&#x20AC;&#x201C; full of trucks. Trucks carry payload across the country, and sooner or later they have to head for a logistics centre. In 2010, this type of properties were built, bought and rented out in larger quantities than in the crisis year 2009. Many factors indicate that this upwards tendency is here to stay. Thereâ&#x20AC;&#x2122;s plenty to do for developers of warehouses, and investors can tap into new opportunities off the beaten track of offices and commercial real estate. â&#x20AC;&#x153;The crisis is over, and weâ&#x20AC;&#x2122;re in the middle of a boom,â&#x20AC;? says Rainer Koepke, Industrial Real Estate Head of Jones Lang LaSalle (JLL). 40% of all logistics companies want to recruit new staff this year, storage facilities are in demand in many places but not on offer. On the other hand, thereâ&#x20AC;&#x2122;s little upwards scope for rents â&#x20AC;&#x201C; the logistics industry doesnâ&#x20AC;&#x2122;t expect any additional revenue as itâ&#x20AC;&#x2122;s always been at the mercy of unforgiving price competition. Annual logistics turnover in Germany

Germany, a land for logistics.

exceeds EUR 200 bn, which only one other sector substantially outperforms â&#x20AC;&#x201C; automotive. Some 2.7 mn people work in companies involved some way or other in logistics.

Space scarcity in strongholds By mid-2011, Koepke expects a lack of large plots from 10,000 sqm in prom inent logistics locations like


Frankfurt. The problem: â&#x20AC;&#x153;Tenants want to keep contract periods as short as possible,â&#x20AC;? says the JLL expert. â&#x20AC;&#x153;But if you only want to rent for three years, no developer will build you a warehouse.â&#x20AC;? Project developers and banks prefer contracts over at least seven or â&#x20AC;&#x201C; better still â&#x20AC;&#x201C; ten years. Otherwise, banks refuse to grant loans. Even if long-term letting has been agreed on for a development project,

banks want an equity ratio of 20% to 40% on the table, which is a high hurdle for small or medium-sized developers. Furthermore, large players like Gazeley, Goodman and Prologis were mostly sorting out internal matters during the financial crisis. Prologis, Germanyâ&#x20AC;&#x2122;s number one, is likely to be occupied with itself again now after the merger with AMB. It may be difficult to finance new warehouses but the letting business rocketed in 2010. JLL measured a turnover of 4.32 mn sqm (letting plus owner use) â&#x20AC;&#x201C; an all-time high and an increase by 33% on 2009. Remarkably, the largest new constructions commissioned in 2010 are situated in eastern German locations like Erfurt and Oranienburg. Although Erfurt was elected newcomer of the year by market researchers at the Fraunhofer Institute, Koepke is sceptical about re-letting existing stock. As before, JLL has designated Berlin, Dusseldorf, Frankfurt (am Main), Hamburg and Munich as Germanyâ&#x20AC;&#x2122;s top five locations for logistics. Continued on page 13





Thursday 3 March 2011

Page 13


Developers, go to Frankfurt! For the time being, the real estate expert sees great opportunities in Munich but also in Frankfurt. “Both cities offer ideal opportunities for letting 20,000-sqm to 30,000-sqm offices to large clients.” According to Bienkowski, Frankfurt’s vacancy rate (highest in Germany at approx. 15%) poses no hindrance. “In this city, users demand extremely high quality but there is little on offer to match this need. This gives you leeway for raising the rent, regardless of the many vacant offices no tenants can put to good use.”

Berlin set to absorb most square metres in 2011 2011 2010 2000





At present, much more office space is let in the five most important German submarkets together than in Europe’s largest individual market for offices, Paris. According to Hela Hinrichs, Europe Researcher at Jones Lang LaSalle (JLL), tenancy contracts in Berlin, Dusseldorf, Frankfurt, Hamburg and Munich totalled 2.5 mn sqm in 2010 whereas only 2.16 mn sqm was achieved in Paris. In 2011, too, Germany (2.4 mn sqm) will remain slightly ahead of Paris (2.3 mn sqm). Germany’s polycentricity might have distracted you from these figures. As there is no single megacity, the market for investors is fragmented. At the same time, diversification over various locations makes drastic slumps in rents and prices virtually impossible. Unfortunately, the same holds true for heavy growth rates – something investors might only dream of in Germany. As an effect, rents in the Moscow growth market shot up by 20% in 2010 followed by London’s West End (18%). In Madrid, they dropped by 9%. In Germany, upwards and downwards deviation from the previous year’s values stayed minimal – 3% less was achieved in Frankfurt, at the bottom end of the scale, whereas 4.5% more is the Dusseldorf figure at the other. Compared to other nations with their leading capital cities like Spain, France and the UK, the German market slightly lacks dynamics, says Piotr Bienkowski, BNP Paribas RE’s German MD. “In a metropolis, a small economic spark can start a wildfire,” he says, casting a glance at notoriously volatile London. As we ask him where in Germany he expects most movement in 2011, Bienkowski answers: “Munich, in all likelihood.” In 2010, he says, Munich – unlike other important German office markets – reached its annual turnover figure without any one-off tenancy contracts covering disproportionally large properties. “For me, Munich is the strongest and most dynamic of all urban markets in Germany.”

Net absorption of office space (in thousands of sqm):


The German office market has often bored investors with low volatility levels. But they can be a USP over other countries. They are now.


“Outperforming the European competition”










London- London- Moscow WestCity End

© Immobilien Zeitung; Jones Lang LaSalle

For Dusseldorf, however, Bienkowski predicts a downwards trend in rent turnover for this year. “A new tenancy contract with Vodafone over 90,000 sqm was an absolutely exceptional deal that can hardly be repeated,” Bienkowski says. As far as Hamburg and Berlin are concerned, he predicts tenancy markets to remain on the previous year’s level in 2011.

Compared to other European core markets, Bienkowski sees Germany in a good position. “You shouldn’t expect much change for the better in France, Spain and Italy at the moment. In Germany, however, companies have already begun to recruit new staff, and they’re on the lookout for new premises. Therefore, we expect Germany to outperform the European competitive

field in 2011.” At the same time, Bienkowski has a word of warning for investors – don’t hope for the new economic momentum to spread from central locations to offices in peripheral ones. He says rents in the outskirts are highly unlikely to grow any further. “Tenants are simply exchanging old quality for new offices at identical prices.” (mol)


Business on a roll However, not even half of the total turnover in the industry was generated there in 2010 (1.8 mn sqm).

7% of gross initial yield To date, investors have only shown moderate interest in logistics prop erties. According to Colliers, the 2010 transaction volume amounted to EUR 1.2 bn – a 53% increase over 2009 that only accounts for approx. 6% of the entire volume of commercial real estate bought and sold last year. Offices (EUR 8 bn) and retail properties (EUR 6.8 bn) were in higher demand. According to Urmut Ertan, Managing Director of the real estate service company Realogis, the gross initial yield rate for warehouses with long-term tenancy in places like Dusseldorf, Frankfurt, Hamburg, Cologne and Stuttgart amounts to approx. 7%. In the course of this year, he expects a drop below the 7-percent threshold for contracts over more than ten years for outstandingly creditworthy tenants – until the end of year, such top properties may even slump to 6.85% in gross initial return rate.

The Fraunhofer researchers believe Erfurt is not the only sustainable underrated logistics location in Germany. Upcoming regions with a future, they say, include Magdeburg, and Göt-

tingen is considered a spot with growth potential. The picturesque university town is connected to a new autobahn. Like all the others, it’ll soon be jammed. (bb)

Top logistics developments 2010:*

Largest projects developed in the east Place

Storage capacities in sqm




Eurogate Distribution/Prologis, Gieag

Oranienburg (near Berlin)


Rewe (owner and user)

Hörselgau (near Erfurt)


Rhenus (owner and user)



Fiege/Fiege, Union Investment



Stute, Tognum, MTU (owner and user) Daimler/Goodman

Malsch (near Karlsruhe)




Edeka (owner and user)

Uffenheim (Franconia)


XXX Lutz (owner and user)



Netto (owner and user)

Graben (near Augsburg)


Lidl (owner and user)

Bargteheide (near Hamburg)


Aldi (owner and user)

Bedburg (near Bergheim)


TK Maxx/Alpha Industrial

Eitting (near Munich)


Rewe (owner and user)

*Tenants/developers and owner-occupiers

© Immobilien Zeitung; Jones Lang LaSalle

Page 14

Thursday 3 March 2011


Residential Properties: A steamboat speeding up The German market for housing is like a steamboat – if you jump onto it, you’ll move forwards, albeit slowly. Not fast enough for some passengers, but here’s some shipping news: The boat is gaining steam, rents and property values are on the rise. As a result, numerous companies intend to buy, whereas others like Oaktree, Cerberus and Goldman Sachs are waving their investments goodbye. “The housing market has seen a sea change across the board,” Harald Simons, board member of the empirica Institute, describes the situation in the spring report commissioned by Immobilien Zeitung. As he writes about increasing apartment rents and prices, his matter-of-fact view shines through. He can take on a different tone though if you talk to him: “More than 20% within two years blows my mind!” More than 20% rent increase for new contracts in Berlin is the institute’s projection for 2010 and 2011 together. Quite possibly, Simons says, this figure may be an underestimate. The empirica Institute is expecting a rent increase of 16% in Hamburg and over 10% in Cologne and Frankfurt. Low interest rates, inflation angst, the wish to secure one’s assets and the realisation that the German economy emerged from the crisis far less beaten


Selected offers for MIPIM 1. Retail center in North Rhine-West. New build, 10-15 y. contract, top tenants, € 50 m, 7,4% yield 2. Hotel in Munich New build, 20 y. lease, AAAoperator, € 40 m, 6,0% yield 3. Commercial property in Munich New build, 10 y. contract, best tenant, € 30,0 m, 6,0% yield

than feared have all sparked new dynamics in the market for rental and owner-occupied housing. Since German economists are predicting that 2011 is going to be a good year for business and the number of completed housing units – just under 150,000 in 2010 – falls substantially short of demand, estimated at 200,000, market players are seeing upwards price indicators again. Nationally, new contract letting is predicted to go up by 2.5% to 3% in 2011 while apartment prices are going to rise by 3% to 4%. You can actually pin higher hopes to some regions – for example, empirica believes that purchasing prices in Berlin are set to go up by 12% on average, Hamburg prices are going to rise by

GSW, which owns 50,000 apartments in Berlin – here’s one of their properties in Reinickendorf – is being brought into position for a second IPO attempt by Oaktree and Goldman Sachs. Photo: GSW

10%, properties in Frankfurt by 6% and Munich housing by 4%. By contrast, André Adami, a consultant at the BulwienGesa Institute, is trying to dampen expectations down. According to him, higher purchasing prices will lower achievable total return rates for flats (value adjustment plus cash flow). After a preliminary projection of 8.3% for 2010, BulwienGesa estimate the total return rate for German housing to reach 6.8% this year and approx. 6.5% p.a. until 2014.

More foreign investors The total return rate BulwienGesa expects for 2010 to 2014 (approx. 6.3% p.a. on average) doesn’t compare with the rates for commercial and industrial real estate and retail properties (approx. 8% and 6.5%, respectively, p.a.) but investors still like flats. In a survey conducted by Ernst & Young, 44% of companies that have pursued activities in the German market in recent years said they wanted to focus on housing in 2011. 36% of investors have retail properties at the top of their list, only 20% are still going to buy into offices. Against this backdrop, portfolio transactions may well increase in volume. Last year, BulwienGesa recorded 129 deals totalling just under 69,400 units, which went into new ownership for a total transaction sum of EUR 3.64 bn. All data-collecting institutes and agents agree that foreign investors are re-entering the scene. According to Savills, international money stood behind just one deal in five in 2010 but acquired about half of the selling volume in units.

For this year, BulwienGesa’s consultant Adami is expecting a trade volume of approx. EUR 5 bn. His calculation doesn’t include possible large deals like the sale of housing trusts held by two public banks, LBBW (24,000 flats) and BayernLB (nearly 34,000 units). Adami projects that average prices will go up by 3% to 4% to more than EUR 800/sqm on average. “We observed a major leap in 2010 when prices went up by 8% to 10% to 14.5 to 15 annual rents, netted for service charges, heating etc.” The rent and price increase will please all those who bought into the market long ago and are trying to exit it now. Having sold its 11.35% share in the listed Deutsche Wohnen, Oaktree no longer has a stake in this company. Allegedly, the Americans fetched a

higher price for voting rights than in October 2010 when they disinvested approx. 11% too – since then, the share price has climbed in excess of 15%.

GSW: second IPO attempt Times are fine for Cerberus and the Whitehall Fund owned by Goldman Sachs as well – they are planning a second IPO attempt for the Berlin housing company GSW. Just recently, they secured refinancing for an 890-mn-euro loan. The industry believes that the failure to refinance had been the reason why they didn’t go public with it in early 2010, despite previous announcements. Financial experts say the Americans will launch Deutsche Wohnen on the stock exchange some time in the next three to five months. (cr)

Projection for total return rates, housing on stock*:

Highest yield opportunities in Cologne 8,0%


6,9% 6,3%


7,2% 7,2%


6,4% 7,4%


5,6% 4,3%



2011 2012

5,6% 5,1%



Cologne 0%

7,5% 1%


*value adjustment plus cash flow









© Immobilien Zeitung; Source: BulwienGesa

Thursday 3 March 2011

Page 15


Pfandbrief lets German banks come up for air The German real estate finance sector hasn’t emerged from the financial crisis unscathed, as becomes apparent from the debacle around Hypo Real Estate and several of the central banks owned by German states, the Landesbanken. The banks have the Pfandbrief to thank that things didn’t turn out worse. What’s more, what is known as the German three-pillar banking system provided a significant safety net for the real estate industry when the going got tough.


Before the onset of the financial crisis the German banking system had been regarded as rigid, obsolete, oldfashioned – and a growth obstacle. Allegedly, Germany was overbanked, competition as fierce as a lion, margins had hit rock bottom. Private commercial banks heavily criticised the threepillar system which would only allow for mergers within one of the pillars at a time, i.e. between public banks (Sparkassen), cooperative banks (Volksbanken) and private banks (Geschäftsbanken). Mergers of banks from two or three pillars are impossible. More than anything, implied government guarantees for publicly held institutions were a thorn in the flesh of large private banks.

“The Pfandbrief stopped the formation of price bubbles.” Prof. Steffen Sebastian


Now, in year four after the beginning of the financial crisis, the criticism has ebbed away – the German three-pillar system has a proven track record as a stabilising factor. “Especially Sparkassen and Volksbanken had comprehensive lending capacities at their disposal during the financial crisis, not least

“Some banks stepped on the brake in time.” Dirk Richolt

because of the large amounts held in deposits. As a result, a genuine credit crunch never came about in Germany – not even at a point where individual private banks showed reluctance,” says Gero Bergmann, Sales Head of Berlin Hyp. Jürgen Allerkamp, CEO of Deutsche Hypo, adds that Volksbanken and

German banks could refinance themselves with the Pfandbrief even when the crisis hit capital markets.

Sparkassen were only minorly – if at all – affected by the turbulence on capital markets since their focus is regional. “Consequently, volatility on financial markets has not infested the German banking system to the extent we’ve seen this happen in the UK, for example,” says Steffen Sebastian, a banking expert at Regensburg-based Irebs, praising the stability-enhancing effect of the three-pillar system. However, the economist says, part of the stability was lost through “sometimes mad foreign investments” by some of the Landesbanken that bit off more than they could chew; regional banks own these umbrella institutions and have been affected by their losses in foreign operations as a consequence. Dirk Richolt, a finance and capital market expert at CB Richard Ellis, points to the fact that nonetheless, the German real estate market would have struggled with much higher volatility if it weren’t for the three-pillar system. “Today, nobody would question the system any more.”

The Pfandbrief, “good and inexpensive” The Pfandbrief – the German version of a covered bond – is even more important for the German real estate market than its division into three entirely separate segments. These bonds are a refinancing tool which practically enjoys iconic status in real estate finance. Allerkamp and Edgar Zoller, BayernLB’s Head of Real Estate, describe it as “the premium product of the German capital market.” Zoller: “Even at the peak of the crisis on the financial market, German banks were practically able to refinance themselves by issuing Pfandbriefe on a daily basis.” Claus-Jürgen Cohausz, a Board Member of WestImmo, praises the Pfandbrief as a reliable and inter nationally inexpensive refinancing source. Owing to strict legal requirements for assessing its loan value, its fixed interest rate and the quality of its

cover, it is a much-appreciated security among investors. Thomas Ortmanns, a Board Member of Aareal, sees the fact that many countries use the Pfandbrief as a model for the legal construction of covered bonds as proof of its outstanding quality, calling the capital market product an “undisputed benchmark.” Accordingly, risk mark-ups are low. “Without Pfandbrief refinancing, the market would never have been competitive,” says Richolt. He estimates the price difference between the Pfandbrief and a “common” covered bond at approx. 50 basis points.


Selected offers for MIPIM 1. Commercial building in Munich Top location, long term contracts, € 70,0 m, 6,0% yield 2. Shopping center in Munich New build, 10-15 y. contracts, top tenants, € 30,0 m, 5,8% yield 3. Office building in Hamburg Top condition, 10 y. contract, AAA tenant, € 50,0 m, 6,5% yield

If you intend to issue a Pfandbrief, the loans you grant have to comply with dedicated legal provisions. Above all, you’re obliged to observe the German Mortgage Value Lending Ordinance (BelWertV) under which the property value that can be realised in the long term applies. “This leaves hardly any room for speculative considerations because mortgage lending values are the key parameter when you use a Pfandbrief for refinancing. On the other hand, this has a positive impact on real estate prices and provides for stability,” says Louis Hagen, the Speaker of the Board at Münchener Hypothekenbank.

Photo: vdp

Professor Sebastian of Irebs, however, sees other reasons that precluded a price bubble in Germany from the very outset, such as the interest rate level in Germany – which is high, if you consider economic growth rates – after the introduction of the euro. Compared to other countries like Spain and Ireland where growth rates were high at the time, investment in Germany soon become relatively unattractive. So, whereas excessive loan facilities and money supply growth favoured the development of a price bubble in Spain and Ireland, Germany remained untouched by the trend.

Luck and judgement Currently, the situation has reversed – Germany’s booming, many other EU countries are in a recession. “In this situation, the ECB’s prime rate tends to be too low for the German economy. Should this constellation persist over a longer period, price bubbles may form in Germany too,” Sebastian warns. Luckily, there’s the Pfandbrief to “counter such tendencies as a conservative financing vehicle” – it stops loan growth since their cover is restricted to 60%, no more. “Therefore, I expect real estate prices on the German market to rise but the risk of massively exaggerated prices is something I should regard as rather low,” says Sebastian. Speaking of luck: Dirk Richolt believes the German real estate banks have had their share of it. “If demand had kept on stagnating in the German economy for six to twelve more months, this would have triggered a massive chain of insolvencies that would also have affected the real estate industry and banks.” But besides luck, judgement played a role too in keeping up stability: “Some banks stepped on the brake in time and carried out relatively few transactions during the boom phase,” Richolt says. And last but not least, says Cohausz of WestImmo, support measures by the government ensured stability in the banking sector. (nik)

Page 16

Thursday 3 March 2011


Three German projects nomineed for Awards As many as three German projects have made it – they’re among the 18 nominees for the 2011 Mipim Awards. They include the Deutsche Bank Towers in Frankfurt, the JohannisContor in Hamburg and the Schrödterhaus in Leipzig. It’s going to get tense in March when the visitors to the Mipim trade fair in Cannes will once again vote for the best real estate projects worldwide. In recent years, the Germans have brought home a number of trophies.

tectural quality and how the building fits into its surroundings. Up to the last Awards, the decision had been completely at the visitors’ discretion. In addition to the 18 nominees men tioned, three British projects have been nominated for a special prize, since the UK will be Mipim’s guest of honour this year. They include 5 Merchant Square, KPMG Canary Wharf and the W Hotel. Furthermore, a special prize will be granted to one of the projects by the jury alone.

As many as two German projects are competing in the Refurbished Office Buildings category of the Awards – the Schrödterhaus, revitalised by Magnat Asset Management, and the altered JohannisContor in Hamburg, planned by kbnk architects of Tecno. Both properties are fighting against the First Tower office block in Paris by Altarea Cogedim.

German projects among last years’ winners

Deutsche Bank competing in the Green Building category The Frankfurt office towers of Deutsche Bank were submitted for a different category – Green Buildings. Their rivals include the Italian headquarters of 3M and the Levent Office Project in Turkey by Tekfen Real Estate Development. Future Projects is the name of a new category to be added. The Central Park in Australia, the Pixel Garden City in Denmark and the Japanese Sustainable Urban Redevelopment project are all

Last year, two German project teams were among the lucky winners of Mipim Awards. Photo: Reed Midem

trying to win over the visitors’ vote. Entries in the Hotel & Tourism Resorts category include Navarino Dunes, Costa Navarino (Greece); the Park Hotel Hyderabad (India); and the W Hotel (UK). Entering the ring for Business Centres are two French projects, namely Chèque Déjeuner Headquarters and the CMA GGM Tower, and one in Hong Kong, the International Commerce Centre. As for Residential Developments, they include the Burj Khalifa

Refurbished Office Buildings urg b m Ha

JohannisContor The JohannisContor in Hamburg was devel oped on the site of an historic building whose façade was retained by the Tecno developers. Plans for the refurbishment of this house – which now boasts over 3,000 sqm of gross floor space since it was extended at the top – were made by kbnk architects. The roof is the JohannisContor’s special feature – it looks closed from the outside but you can actually look out of it through metal blades from within. “We’ve managed to lend an historic building a modern touch,” says Frank Birwe, knbk’s Managing Director.

skyscraper (United Arab Emirates), One Jackson Square (USA) and the Savonnerie Heymans in Belgium. This year’s vote will be split, visitors and jury accounting for one half of it each. “We’ve changed the procedure so as to avoid smaller, less known projects in the competition being disadvantaged when they would be good enough to win a Mipim Award,” says the trade fair’s Director Filippo Rean. Among other criteria, the jury looks into the originality of concepts, archi-

As always, it’s an international jury, chaired this year by Michael Strong, Chairman and CEO of CB Richard Ellis. Other members include the architect Jacques Ferrier, Paolo Gencarelli, Head of Group Real Estate at the Unicredit Group, Ann Heywood, Principal of the College of Estate Management, Frank Khoo, Global Head of Asia at Axa Real Estate, Robert Peto, President of the Royal Institution of Chartered Surveyors, and Olivier Piani, CEO of Allianz Real Estate. Immobilien Zeitung is once again joining in as a partner of the Mipim Awards. German projects have often emerged as winners from past Mipim Awards. In 2010, BonnVisio Real Estate received one of the coveted trophies for the Kameha Grand Hotel in Bonn and Hochtief Projektentwicklung won the visitors’ vote for the Marco Polo Tower in Hamburg. (law)



zig p i Le

The Schrödterhaus is a typical trading house, so many of which were built in this city in the early 20th century. It has undergone modernisation by Magnat Asset Management from 2009 to 2011, converted into an office and retail building with approx. 9,000 sqm of lettable space. All office areas are connected through a passage that’s also available for hosting events. The Schrödterhaus offers its tenants a conference floor free of charge, depending on how much space they’ve rented in the whole building. All commercial units have already been fully let.

The First Tower, Paris, France Developer: Altarea Cogedim

Thursday 3 March 2011

Page 17

Green Buildings PHOTOS: NOMINEES

rt u f nk a r F

Levent Office Project, Istanbul, Turkey Developer: Tekfen Real Estate Development

Deutsche Bank As part of the largest individual refurbishment measure of a European building, Deutsche Bank converted its Frankfurt headquarters into a green building (120,000 sqm of gross floor space). The project stretched from 2007 to 2010, and it has already received a preliminary DGNB Gold Certificate and an LEED Platinum Certificate (on the grounds of criteria for new construction). Except for the position and arrangement of the entrance, the two towers may look the same as before from


the outside but as a matter of fact, the entire façade was exchanged and equipped with windows you can open. Alongside a major reduction of energy consumption, the floor efficiency of these skyscrapers was optimised. “It’s a USP that we’ve modernised existing stock and managed to exceed the standards of quite a few other new constructions,” says Holger Hagge, project leader. Due to refurbishing, the life cycle of the towers – in use for 27 years now – has been prolonged substantially.

3M Italy Headquarters, Malaspina Business Park, Milan, Italy Developer: Pirelli Real Estate

Page 18

Thursday 3 March 2011

Residential Developments


Burj Khalifa, Dubai, United Arab Emirates Developer: EMAAR Properties

Business Centres

W Hotel, London, UK Developer: McAleer + Rushe

CMA CGM Tower, Marseilles, France Developer: SCI Tour d’Arenc

International Commerce Centre, West Kowloon, Hong Kong Developer: Sun Hung Kai Properties

The Park Hotel, Hyderabad, India Developer: Apeeja Surrenda Park Hotels

Future Projects PHOTOS: NOMINEES

Chèque Déjeuner, Grennevilliers, France Developer: AG Real Estate


Navarino Dunes Costa Navarino, Messinia, Greece Developer: Temes S.A.

One Jackson Square, New York, USA Developer: Hines

Savonnerie Heymans, Brussels, Belgium Developer: CPAS Bruxelles

Hotel and Tourism Resorts


Central Park, Sydney, Australia Developer: Frasers Property Australia

Pixel Garden City, Copenhagen, Denmark Developer: 3B Housing Association

Sustainable Urban Redevelopment, Takamutsu, Yamaguchi, Nagahama, Numadu, Ohita, Japan Developers: Takamatsu Marugame-machi Machidukuri and others

Deutsche Bank Social Responsibility

Green grounds for the MIPIM AWARD â&#x20AC;&#x2DC;Green Buildingâ&#x20AC;&#x2122; New Deutsche Bank Towers

67 %

less heating energy

74 %

less water consumption

89 % less CO2 emissions

Page 20

Thursday 3 March 2011


The Lena factor, and billions to invest Dusseldorf can pride itself on being the top climber among the German office markets in 2010. What is more, this trend is likely to continue for 2011 – prospects for the capital city of North Rhine-Westphalia are currently good. Don’t underestimate the effect of the Eurovision Song Contest that’s going to be held there. The moment Lena and her col leagues reach for the winner’s title in the competition, Dusseldorf’s fame is bound to spread all across Europe. For the time being, however, Dusseldorf locals have to explain to international investors with patience that “their city is close to Cologne” – a painful statement. Unsurprisingly, campaigns have been developed to raise awareness for Dusseldorf (or Düsseldorf, as you would spell it in German, with an umlaut) as an investment location.

The Rhine panorama, Königsallee, high return rates – Dusseldorf has a lot to offer to investors.

From an economic point of view, Dusseldorf doesn’t need such efforts, as its real estate industry is in an excellent condition. For this segment, 2010 was a year to remember. The largest tenancy deal for ages (90,000 sqm) was struck – Vodafone started the development of new corporate headquarters.

German investors still dominate the market

Dusseldorf’s Lord Mayor, Dirk Elbers, holding the key to the ESC host city Photo: City of Dusseldorf

The project has already been sold, even before the first spade was dug into the ground – Deutsche Fonds Holding will become Vodafone’s landlord. Eight transactions last year

involved more than EUR 50 mn each, the five largest of which totalled approx. 50% of last year’s total turnover. No less than three deals exceeded the 100-mn-euro threshold – more than in any other German city. Remarkably, almost all investors who bought Dusseldorf properties in 2010 were from Germany; their business turnover in the city amounted to EUR 1.4 bn. However, foreign buyers have already begun to knock on Dusseldorf doors, despite some reluctance on their part. Allegedly, a consortium lead by a US investor group has acquired the Deutsche Bank block at Königsallee from Spanish Metrovacesa. What makes Dusseldorf so attractive

Photo: thk

at the moment? First thing to mention, Dusseldorf hosts a well-balanced mix of industries. By contrast with Frankfurt where it’s all about banking, Dusseldorf is home to a variety of industries which provide for good and relatively stable demand on the office market. On top of that, numerous attractive office buildings are under construction near the airport and in the Unternehmerstadt development zone, and Daniel Libeskind’s Kö-Bogen is a definite highlight project. A sound balance between supply and demand makes Dusseldorf a top location to invest your money. And after the ESC, everyone will know the place – and the umlaut in its German spelling. (thk)


All quiet on the investment front For an overwhelming majority of investors, the Ruhr valley is somewhat tantamount to terra incognita. However, it’s worth having a closer look at this region between Duisburg and Dortmund, especially as it has a certain strength for resisting crises. You can’t expect outstanding return rates in Germany’s largest metropolitan area where about 5 million people live. However, the Ruhr valley has other aces up its sleeve – there’s virtually no vacancy but high demand and absolute safety for investors. The large cities – Duisburg, Essen and Dortmund – have almost no space left to let in the up-market segment. A local agent reports that he hasn’t been able to find a 350-sqm office area in Duisburg for a solvent tenant – “I see ample opportunities for investment,” the expert says. If you are ready for

speculative investment in new construction in the Ruhr valley now, you won’t need to worry if you’ll be able to let it, he says. And if you want to play it safer, why not go for a refurbishment project – which will even give you the chance to

dictate what you believe is the right rent, given the scarce supply. Clearly, however, you’ll have to bid farewell to rents as high as in Cologne or even Dusseldorf. Average rents for quality properties in the three largest markets currently range at approx. EUR

Space for investors – the Phoenix-See project in Dortmund Photo: City of Dortmund

13.50/sqm, give or take 50 cents per sqm. But the question is: How will rents develop when no new space is added to the market? And yes, no new space is being added – completion rates for Duisburg, Essen and Dortmund are nearing zero. The news about this unique situ ation in the Ruhr valley has reached some real estate investors in Germany too. The package deals of recent years included some properties in the Ruhr valley too, and several holding companies now own individual properties there. More than anybody else, conservative investors have developed a penchant towards the region, especially because it has remained a fortress of stability during the last economic crisis. For one thing holds truer for the Ruhr valley than for any other location in Germany – without a bubble, there’s nothing that can burst. (thk)

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Fully let housing next to empty offices Housing is scarce, large offices are vacant. But the options Frankfurt authorities can offer to convert commercial into residential properties are restricted. At the same time, Frankfurt’s population continues to rise. In 1990, some 634,000 people lived in Frankfurt. By now, their number has exceeded 688,000 – and rising. Frankfurt’s population keeps growing, which means more revenue for the local treasury and more sales for local businesses. Plus it implies a question among local planning authorities and the real estate industry: Where do new residents want to live in Frankfurt? In the most recent past, Frankfurt has defined some large construction zones. Here are just two examples: Upon completion, some 10,000 people are going to live and 30,000 work in the Europaviertel in Frankfurt’s Westend area. The new quarter will cover a surface of 90 ha and include residential buildings, offices, hotels and retail properties. Riedberg, a new quarter in the making, will provide space for 6,000 units for some 15,000 people. “At Riedberg, the city still has reserves of housing land where over 18,000 units can be constructed,“ says Markus Frank, head of the local department for economy. “At the same time, however, we have to create new residential space by converting and re-densifying existing stock.“ Reading between the lines - there is some space left. Basically, there’s plenty of it available in Frankfurt anyway. With over 2 mn sqm of office vacancy, Frankfurt is far ahead of any other German city or town in this category. In many cases, buildings are empty because they don’t meet the high demands of those on the lookout. “The proportion of Frankfurt offices older than 30 years is not unsubstantial,” says Frank. And Marcus

The Riedberg housing project – space for approx. 15,000 people by 2017.

Photo: HA Stadtentwicklungsgesellschaft

Mornhart, head of JLL’s office letting department in Frankfurt, estimates that approx. 20% of existing vacant stock has by now become unmarketable. Total refurbishment, use conversion or demolition seem to be the only alternatives. Local authorities have already begun to drill in this direction, trying to persuade owners of vacant offices to convert them into residential units. One successful example will be a residential quarter to be built in the office district of Niederrad. “There’s also an incentive scheme for housing development in the Bahnhofsviertel (translator’s note: the area around Frankfurt’s central

ing to Jones Lang LaSalle, JLL, who distinguish between top rents achieved in various properties and a unique peak rent, which was as high as EUR 39/sqm). Nonetheless, housing development will remain a burning topic on Frankfurt’s political agenda because “Frankfurt is a popular city to work in as it hosts many different industries and companies,” says Frank. Another convincing feature is its central location and its high connectivity, which make Frankfurt a popular location for entrepreneurial activities. Local authorities predict that approx. 724,000 people will live in Frankfurt by 2030. (api)

station, notorious as a red-light district with some derelict office buildings in between). Subsidies are provided if you convert a commercial building into a residential property,” Frank explains. “Ultimately, however, any conversion is at the owner’s discretion.” Often, high refurbishment costs and low rental income, compared to offices, stop landlords from realising conversion plans. Last year, the average rent for offices in Frankfurt amounted to EUR 20/sqm, top rents in premium properties almost doubling that. Top rents range between EUR 38/sqm (according to CB Richard Ellis and Colliers) and up to EUR 33/sqm (accord-


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Thursday 3 March 2011

Page 23


Young people, and an upbeat local economy The real estate set from Hamburg are taking impressive figures along on their trip to Cannes – the last mile of the property race in Germany’s northern metropolis already began after the summer holidays! For offices and investments alike, achieved results have been above the ten-year average, and an all-time high was recorded for Germany’s top logistics centre where some 610,000 sqm of space was let. The population of Hamburg is growing younger and younger, and upbeat local businesses are planning to hire new staff on a large scale in 2011. According to a ranking of German states conducted by the Initiative for a New Social Market Economy (INSM) in 2009, Hamburg leads the table when it comes to gross domestic product (GDP) per capita (EUR 48,229), available income per capita (EUR 23,602) and demographic development for 2006 to 2009, which even includes employment – the city’s population grew by 1.7% (main age group: 18 – 30 years) while its working population rose by 5.9%, with particularly strong growth among highly skilled workers.

A diversified economy After a below-average decrease of the Hamburg GDP in 2009, a 3.6% growth was recorded in 2010. The trend is expected to continue at 2.5% this year. According to a survey on the economic climate by the Hamburg Chamber of Commerce in December 2010, some 42.6% of local entrepreneurs assessed

Hamburg is shaped by industrial companies, the port and Hafencity.

their business situation as “good” opposed to no more than 9.8% answering “bad”. People have developed more willingness to invest and some 27.5% of local companies are planning to recruit additional staff in 2011. The number of jobs already rose by 8,800 (0.8%) in 2010 whereas the number of insolvencies dropped by 8.3% to the lowest percentage figure nationwide. What do these figures imply? Andreas Köpke of the Hamburg Agency for the Promotion of Economic Growth (HWF) tells us they are the upshot of a largely diversified economic structure with many SMEs. “During past crises, this structure has protected Hamburg against major downturn that could have affected the whole city.” Köpke isn’t shy to point out his own merits: “Hamburg already pursued a clustering policy when no-one else in Germany knew what a cluster was.” To underpin his argument, Köpke -

Photo: ff

mentions public support for digital business from the mid-1990s, and promoting the local aviation industry with a focus on Airbus since 2000 – in early 2011, the aircraft manufacturer struck the largest deal in aviation history ever (USD 15.6 bn).

“European Green Capital” At present, the City of Hamburg promotes the games industry and renewable energies, which has had immediate reverberations on the real estate sector – Bigpoint game developers signed a contract to rent 11,000 sqm of office space in the “Denkmal” (“Monument”) refurbishment project by Strabag Projektentwicklung, the largest new contract in central Hamburg for years. In January 2011, the wind power company Nordex moved from nearby Norderstedt into new Hamburg

headquarters with 500 employees. The company intends to take on several hundred additional engineers by 2014. The US group General Electric (GE) plans to locate its new technology centre for offshore wind power plants in Hamburg, thus creating 60 new jobs by 2013. Broadwind Energy, another American player, wants to develop its European business from Hamburg. The company’s Managing Director, Michael Stegelmann, says this step is logical because the Hamburg region boasts 600 companies in the field of wind power. Furthermore, “as Europe’s environmental capital in 2011, Hamburg is the place to be.” With a new local government of Christian Democrats and the Green Party in power, the former catchphrase of the “growing city” was replaced by “future-oriented growth”. Continued on page 24

Facts and figures Total population, 2011: Hamburg 1.8 mn Metropolitan region 4.3 mn Gross domestic product (GDP): Hamburg 2009 -3,2% Germany 2009 -4,7% Hamburg 2010 +3,6% Germany 2010 +3,6% Hamburg 2011 +2,5% Germany 2011 +2,3% Office space turnover, 2010: 506,000 sqm (+28%) Investment turnover, 2010: EUR 2 bn (+57%) Industrial space turnover, 2010: 610,000 sqm (+59%) © Immobilien Zeitung; source: Hamburg Chamber of Commerce/ Jones Lang LaSalle/Grossmann & Berger


Hamburg hat Platz für Ihre Visionen Hamburg, a place for your visions Land for commercial and residential uses

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Freie und Hansestadt Hamburg Finanzbehörde – Immobilienmanagement Dammtorstraße 7, 20354 Hamburg

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Thursday 3 March 2011


Hanover: First in the second division Hanover has long been praised as Germany’s best B location – but as far as logistics and retail properties are concerned, the capital city of Lower Saxony already ranks among premium players. What’s more, the office market is a model for stability. If you go on a virtual trip to Hanover – a city of 500,000 – with Google

maps, its central position in Germany will strike you at once; it’s located at intersections of railway lines and motorways between Hamburg and Frankfurt (the A 7 autobahn), and between the Ruhr Valley and Berlin (A 2). Furthermore, an important manmade waterway, the Mittellandkanal, flows through Hanover. Hanover hosts trade fairs, it’s a university city, and Hanover’s airport in Langenhagen connects people and products with faraway countries.


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As a location for logistics, the Airport Business Park accounted for 17% of total logistics space turnover (313,000 sqm) in the Hanover region in 2010 (2009: 270,000 sqm). Nearby Lehrte – home to a goods traffic centre (GVZ) – contributed one third. With more than 300,000 sqm let, Lower Saxony’s capital leaves behind most densely populated regions in Germany. A study by the Fraunhofer Institute SCS has confirmed Hanover’s importance as a logistics region with a gateway function for Europe. Year after year, Hanover is in the German top five when pedestrian zone frequency is measured. According to the retail agent Comfort Hamburg, rents of up to EUR 180/sqm are achieved in Georgsstraße and Bahnhofstraße. Even after the opening of ECE’s Ernst-August-Galerie, a shopping mall, in October 2008, floorspace demand by national and international chain stores has not relented.

No 1 in the retail business “Hanover has a very large catchment area, and it’s the undisputed number one spot in the region,” says Andreas

Niki-de-Saint-Phalle-Promenade, underground in Bahnhofstraße.

Schulten, BulwienGesa. “Investments in central locations such as the ErnstAugust-Galerie or the Kröpcke-Center, a more recent project, are protected by the government. Such protection is important.” Hanover’s centrality index is 138, which places it among Germany’s most important retail locations with a large offer for the hinterland. Major shifts were recorded around Große Packhofstraße, an A1 location. A building formerly used by SinnLeffers, a mid- to upmarket textile store (20,000 sqm of usable floor space), was bought by the Irish low-cost clothing retailer Primark who intend to open an outlet (8,000 sqm of retail space) in 2011. Nearby, the Sahle group from Greven acquired Karstadt’s technical department store, future tenants including TK Maxx, Zero and Edeka. Günter Rudloff of Comfort Hamburg says that Hanover is very interesting for investors because return rates, currently ranging between 5.4% and 5.8%, are slightly higher than in comparable strongholds like Dusseldorf, Frankfurt or Stuttgart. Currently, business is somewhat slower in the office segment of the

Photo: ff

market. As in recent years, Hanover managed to hit the 100,000-sqm mark in 2010 as far as total space turnover is concerned. Some 93,000 sqm of the total figure (106,000 sqm) was rented out – a moderate decrease by 6% from 2009. Despite a minor increase in top rents by 2.5% to EUR 12.80/sqm in 2010, Andreas Schulten expects “rents won’t rise in 2011, just like in other German cities.” However, Hanover is not a volatile market because “in other places like Frankfurt, where vacancy has rocketed to as much as 18%, Hanover has remained at just 4.9%.” Top return rates amount to 6.4%. A concept called “Hannover City 2020+” (note the double n in the German spelling), adopted in 2010 by the City Council, is a dedicated attempt to shape the future of central Hanover. Implementation is intended to start at Klagesmarkt, where large complexes and a high-rise building (the latter still subject to discussion) are planned for construction as of 2012. Furthermore, 2011 will see a resolution as to whether or not a second town hall will be built at Raschplatz. (ff)


Young people, and an upbeat local economy As a side effect, Hamburg has presented itself as “European Green Capital” at Expo Real and Mipim since 2009. Focal points are the International Building Exhibition (IBA) in Wilhelmsburg, a suburb neglected for decades on the south bank of the river Elbe, and its opposite neighbour Hafencity on the north bank. With some effort, IBA 2010 managed to find first investors for the showcase quarter in “Neue Mitte Wilhelmsburg” – Wilhelmsburg’s New Centre. Companies like Otto Wulff, Hochtief, Hamburg Team, SchwörerHaus or Primus Development are realising hybrid houses, water houses, smart-price and smartmaterial homes up to 2013. The investment volume of about 50 IBA construction projects totals EUR 600 mn.

By 2020, the investment volume for Hafencity is expected to total EUR 8.6 bn including some EUR 6.6 bn from private investors. Some EUR 1.2 bn alone will have to be spent on the highly densified Überseequartier (Overseas Quarter). For the time being, office space sales are making slow progress. In renting 40,000 sqm, local authorities have facilitated the start of the second construction phase. With this contract and other new tenancy agreements, the public sector turned out the largest new tenant last year. It goes to show how well-balanced the Hamburg economy is – mark the introduction to this article – if you consider that in being so, they only signed for 15% of the total turnover (500,000 sqm). “No industry is so strong that the market couldn’t cope with cancel -

lations,” says Andreas Wende, Jones Lang LaSalle. Bottom line: Hamburg is the least volatile among German metropolitan areas. Wende is expecting a similar turnover figure for 2011 with fewer large deals. Although the top rent level slightly dropped to EUR 22.50/sqm in 2010, he believes that rents are set to increase a bit in central locations in 2011 as demand will remain high. The climbing vacancy rate, currently at 9.6%, might hit the 10-percent barrier in 2011 since 200,000 sqm of new office space will come onto the market. With EUR 2 bn, the investment market achieved its third best result in history after 2006 and 2007. A fixation on classic core properties has led to return rates of 4.8% for offices and under 4.5% in retail. However, there are

first signs of a sea change. For example, Deka Immmobilien took over the Metropolis-Haus development project for EUR 93 mn – despite its premium location, tenancy agreements before completion only amount to 40%. An all-time high of 610,000 sqm was achieved in the logistics market in 2010. According to Grossmann & Berger, this figure was 59% higher than in 2009. Whereas national growth of new tenancy in this sector amounted to approx. 30%, Hamburg was able to enhance its position as Germany’s largest submarket in logistics. The forwarding and transport industry (47%) and trading companies (33%) headed the list of new tenants. As a result, Hamburg is benefiting from economic recovery in all re spects. (ff)

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A perfect mix – shopping, culture and a special flair There’s no need to worry about the future of retail business in the large cities and towns of Baden-Wurttemberg, the bottom left rectangle on Germany’s map. Key indicators show that retail is bound to grow. There’s just one fly in the ointment – new tenants are hard to attract as the right kind of space is scarce. Now’s the time to react. After the two-year economic crisis, Baden-Wurttemberg is back and going strong with extraordinarily high growth figures. On a regular basis, Baden-Wurttemberg locations reach top positions in German ranking tables for retail-relevant factors such as purchasing power, sales and centrality. Is this because of their often-quoted Mediterranean atmosphere? As a matter of fact, the highest density of restaurants with at least one Michelin star is in Baden-Wurttemberg. Additionally, the state offers picturesque landscapes and cultural activities. Its shopping flair, however, is the chief ingredient to round off a perfect dish.

Large shopping precincts planned in Stuttgart By tradition, Königstraße in Stuttgart has always boasted the highest demand to match with a pedestrian frequency of up to 12,000 per hour. The Stuttgart branch of Jones Lang LaSalle (JLL) expects top rents in this zone to climb from EUR 230/sqm to EUR 235/sqm this year. Since demand for space by national and international retail chains is unbroken, even the 300-euro barrier might be exceeded. Once again, there are rumours about key money for interesting central locations including luxury spots like Kirchstraße and Stiftstraße, Schulstraße and Calwer Straße or Market Square. With such high demand, even mixed commercial properties with initial return rates of 5% are sought after by prospective buyers – besides office buildings. The high demand for retail and wholesale properties couldn’t be met last year due to supply bottle necks. The total transaction volume amounted to no more than EUR 25 mn, Stuttgart-based Colliers Bräutigam & Krämer inform us. Since Stuttgart is a “must” location for nationwide retail concepts, JLL expects Baden-Wurttemberg’s capital to remain a preferred target for retail expansion in 2011. Projects in the making indicate how the transaction and letting market for retail properties can come alive again. Several large projects with mixed uses – offices, retail, wholesale, restaurants and catering – have been planned or are being developed. According to Bankhaus Ellwanger & Geiger, they include the Quartier S in Paulinenstraße (24,000 sqm), the Postquartier

stores: the existing architecture – sometimes medieval, often small – can hardly cater for modern store concepts. With its relatively high centrality index figure – 131.9 – and solid infra structure, however, Konstanz is a university town project developers and investors have begun to focus on.

More space around Mannheim and Heidelberg

Shoppers come flowing as they find choice and ambience. In the competition for A1 locations, key money is a buzzword. Photo: CIS City-Initiative Stuttgart

(just under 10,000 sqm), the Bülow Carré and the Century (totalling 35,000 sqm) and a project jointly carried out by the regional government and the Breuninger fashion store on Karlsplatz (49,000 sqm) which includes a hotel development. Plans for the surroundings of Mailänder Platz in the new Europaviertel behind the central station are controversial. They belong to the Stuttgart 21 infrastructure project which has made it into the news – even internationally – due to public protest. The three consortium partners – ECE Projektmanagement, Strabag Real Estate and Bayerische Hausbau – intend to build a 43,000-sqm ECE shopping mall with a Mediterranean atmos phere, plus housing, offices and a hotel. “This is the largest investment by the private sector in Germany and may be the largest of its kind in Europe,” says Klaus Vogt from the Agency for Economic Promotion of Stuttgart.

Unmatched great locations in the south As yet, the impact of Stuttgart 21 – set to replace the old rail terminus with a through station – on retail business in Ulm is unclear. Ulm is a highcentrality city in the east of BadenWurttemberg, bordering on Bavaria. Unlike in Stuttgart, the public and top policy-makers are backing the station project. If the new railway lines are built, Ulm would only be a 30-minute journey away from Stuttgart. Therefore, Ulm intends to become more attractive around its own station. The nearby Sedelhof quarter (15,000 sqm) is envisaged as the largest development project in the retail segment for the next years. Germany’s southernmost and sunniest city is Freiburg in the south of Baden. Retail rents for individual stores with up to 120 sqm in its top streets, Rathausgasse and Kaiser-Joseph-Straße,

have risen by 60% to EUR 160/sqm over the past ten years, which places Freiburg in tenth position among the 253 most important shopping locations in Germany. In parallel, the value of these assets has climbed by approx. 35% on average. Besides its unmatched vicinity to Switzerland and Alsace, it has a multicultural flair (being a university town). Its restrictive market and centre concepts have contributed to the rise, too. Local project developer Peter Unmüssig wants to show us that there is scope for development – his WestArkaden, a project worth EUR 120 mn, is planned to offer 10,000 sqm of shopping space plus areas for housing and offices. Konstanz, or Constance, situated on the lake of the same name, also benefits from its closeness to Switzerland and southern charm. According to a market analysis by Comfort, store rents have gone up by 45 to 60%, currently reaching EUR 65/sqm on average. Chain operators particularly appreciate Rosgartenstraße and Kanzleistraße, the two best retail spots in town. Charming for tourists, a problem for chain

In the Rhine-Neckar Region around Ludwigshafen, Mannheim and Heidelberg, Mannheim has, as always, defended its lead in retail (centrality index: 138). In the 18th century, the centre of Mannheim was divided into numbered squares which follow the alphabet. The largest central project is a multifunctional development called Q 6 Q 7, located in just these squares, with an investment volume of EUR 250 mn, planned by Mannheim-based Engelhorn and Diringer & Scheidel. A retail concept covering 24,000 sqm is intended to be its unique selling proposition. On top of that, the centre will host a four-star-superior hotel, flats, offices and medical practices. Heidelberg, Mannheim’s neighbour, cannot offer similar floor supply. Not least, however, it’s an extremely popular tourist destination, which has an impact on the centrality of its retail industry (125.8). Due to the frag mented urban structure of central Heidelberg, demand for medium-sized to large retail properties is very high. An urban development project named Bahnstadt, one of the largest railway conversion projects in Germany (116 ha), is planned to provide relief, especially for retail parks. There’s going to be more movement on the market when US Army facilities are given up as the Americans withdraw by 2015, which will release some 780 ha of space in the Rhine-Neckar region in total. Several of their sites will be suitable for retail developments as they are well connected to transport networks. (dl)

Q 6 Q 7 in Mannheim – a future-oriented shopping destination scheduled for completion by 2014. Photo: Diringer & Scheidel


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Thursday 3 March 2011


Berlin – investors’ favourite price now asked in the neighbourhood is EUR 3,500/sqm, he says, and rents for new buildings are all above EUR 11.50/sqm. Whereas one or two large plots are still available in former marginal areas like these, developers in established parts of Mitte, Prenzlauer Berg and Charlottenburg/Wilmersdorf usually have to make do with gaps between buildings or renovation projects. The tight market is giving a new kick to projects that have been on ice for a while. One example is the project Am Zirkus 1, Stylish Yoo-brand apartments designed by Philippe Starck are taken over by the going up on Am Zirkus in Berlin-Mitte. Photo: Eike Becker Austrian company Peach Property. The Only a couple of years ago, private ubiquitous cranes star designer Philipat Scharnhostinvestors saw no point in building pe Starck is in charstraße 6 – 7 to homes in Berlin. That’s all changed ge of interiors for revitalise a former now though, and not only new conthe apartments, post distribution struction but also renovation and which are on offer centre. The end conversion of commercial properties for EUR 4,000/sqm result will be are good business. Rising purchase A comfortable clientele for ownerto EUR 10,000/sqm. around 120 and rent prices have made the Berlin occupied flats on Spittelmarkt. Residential use is owner-occupied housing market a real favourite Photo: Groth-Gruppe also the plan for the flats. According to among investors, even giving long-vacant Haus Cumberland on KurSanus Managing Director Siegfried locations outside the most popular fürstendamm. Profi Partner, Berlin, Nehls, EUR 17.6 mn is going into the residential areas an extra buzz. plans to create 210 units in the project, with an expected EUR 29.5 mn property, originally built as a boarding to be taken in sales. The area between the main station And there’s more good business to house in 1911/12. The revitalised and the future site of the Federal Intelbe done now in the area south of Spitbuilding should fetch prices between ligence Service on Chausseestraße telmarkt, long shunned by project EUR 3,500/sqm and EUR 7,500/sqm. north of Invalidenstraße may look devel opers. Even Berlin’s local A lack of buyers and tenants is unrather dull and grey right now. But first construction magnate Klaus Groth, likely to be a factor. Market researchers impressions can be wrong. Most of the who is developing several residential at the Gewos Institute estimate that the vacant lots have been sold, with buildbuildings with 96 units including 43 number of households in Berlin will ing projects underway or at least flats for rent on the corner of Neue rise by 50,000 by 2015, with the planned on every corner. ForwardGrünstraße and Seydelstraße, was vacancy reserve falling below 1%. Bullooking investors such as Chamartín surprised by the area’s speedy positive Meermann bought up properties and wienGesa recently forecast a drastic development. He’s sold the apartments real estate years ago, and are now housing shortage in Charlottenburg/ for EUR 2,400/sqm to EUR 3,400/sqm developing them one after another. Wilmersdorf. And the growing demand – “And I could have asked for more,” Berlin-based Sanus has set up the says Groth in retrospect. The average is already affecting rents in the

borough: first occupants are paying over EUR 8.50/sqm, with top rents at up to EUR 14/sqm and rising. Owneroccupied flats are going for an average price of EUR 3,300/sqm in this popular part of town. Residential property prices in the Wilmersdorf area have risen almost 30% since 2001, according to BulwienGesa. While in Mitte, prices rocketed by 7.5% in the past year alone. (mv) ANZEIGE

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Bremen – The North – Germany

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East Germany, mon amour “Investing in East Germany is so much fun,” says Christian Graf von Wedel, a man who recently bought himself a 70 m office tower in the heart of the Thuringian city of Jena. And it’s no wonder: purchase prices are lower and the economic conditions are often not nearly as gloomy as many West Germans still think. “Our investment chances are down to the fact that the majority of West German investors haven’t yet noticed what’s going on in Thuringia, Saxony and Saxony-Anhalt,” says the head of the Graf von Wedel property group, Frankfurt am Main. He’ll be refurbishing his new purchase for EUR 3 mn and then renting the offices out for

EUR 10/sqm. “It’ll work out,” says the count. “Definitely. We’re only investing in the former East, because cities like

Office tower in Jena. Photo: Graf von Wedel

Weimar and Jena have growing populations and falling unemployment, young people are motivated again and there are a lot of very young and innovative companies springing up.” Along the A 14 autobahn, says IVD Vice President Michael Schick, the investment opportunities are strung “like beads on a necklace”. Magdeburg, Halle, Leipzig and Dresden are all profiting. And on the Baltic coast in Mecklenburg-West Pomerania, houses are already more expensive than on its West German counterpart, the Bay of Lübeck, as the IVD points out. Another town to have sneaked onto investors’ agendas is the regional capital of Thuringia, Erfurt. Turnover from residential buildings with small amounts of commercial space rose there by an

astounding 77% in the year to 2010. But smaller towns in the east of Germany can make investors very happy too. One prime example is the Brandenburg village of Großräschen (population 10,500), where Flex Fonds from Schorndorf near Stuttgart bought a multi-party residential building with two shops for EUR 5.1 mn. After investing EUR 2.5 mn, the fund managers are now taking EUR 415,000 rent a year, presenting their investors with an 8.1% return rate. A local shopping centre in Zschorlau, Saxony, yields 7.6%. Buying costs one annual net rent less in the east than in the west. Perhaps not for long though. East Germany is on its way up, says Graf von Wedel, who has been investing in the region for 21 years now. (gg)

Thursday 3 March 2011

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Housing, Munich’s knight in shining armour During the real estate crisis even the Munich market for office properties slowed down. However, nobody has a morning-after feeling – because the residential market incidentally slipped into a new boom. Crisis? What crisis? Whereas real estate markets across Europe were ailing in recent years due to the stagnation in commercial properties, Munich had every reason to frolic. Instead of moaning and groaning about unlet office space, many market players simply shifted their energy towards a different business field – the housing sector, which had been pointing in one direction for years: upwards. Munich’s Expert Committee, for example, recorded 25% more sales of plots for multi-storey housing development in 2010 than in 2009, on a YOY basis. At the same time, monetary turnover rose by 48%. Even on the market for owner-occupied homes and partly owner-occupied properties, sales revenue went up by 10% compared to 2009.

Sales higher than expected According to a survey on the development of the housing market in Munich conducted by IVD Süd at the beginning of this year, the prices for owner-occupied flats on stock in creased by 5.5% on average to EUR 3,050/sqm whereas newly built apartments of the same kind grew by 3.8% to EUR 4,050/sqm. In parallel, rents have continued to rise to EUR 13.30/sqm on average for older houses built to a high standard and EUR 13.50/sqm for new constructions. “Compared to large European centres, these amounts appear to be low but the ratio between cost and achievable rent is similar across the board. Accordingly, it makes perfect sense to invest in Munich because you can continuously generate return without any fluctuations,” says Malte Mauer, National Director Head of Residential Investment Germany at Jones Lang LaSalle. No wonder all the market players involved in Munich’s residential business are satisfied. Bayerische Hausbau, for example, managed to sell housing for just under EUR 100 mn in the Bavarian capital – tantamount to 30% above plan. “Even in 2010, we achieved higher sales in this segment than we had optimistically expected – we’re very close to the 150-mn-euro barrier,” says Jürgen Büllesbach, Chairman of the Board of Management of Bayerische Hausbau. He knows that good products in nice locations currently sell quickly in Munich, and it’s a wellbalanced buyers’ mix of owneroccupiers – many of them moving to Munich for the first time – and investors. What’s more: “At present,

The Welfenhöfe are being developed in Munich’s Au district. Photo: Bayerische Hausbau

we’re seeing many investors purchasing a second, third or fourth apartment,” Büllesbach explains. Plus there are family offices or institutional investors buying entire houses. It’s a booming industry, so much so that the Munich housing developer JK Wohnbau undertook something unprecedented in the Munich housing property scene – they went public in November 2010. With their IPO and a capital stock increase, they yielded gross issue proceeds in the amount of EUR 80 mn. The company intends to use these funds for tackling a larger number of projects in Munich and nearby locations.

Prospects remain positive Prospects for such undertakings are good, since the local Expert Committee assumes that the market for owneroccupied flats in the capital of Bavaria will continue to develop positively. According to them, generally increasing market figures for housing land corroborate that the demand for residential properties in Munich won’t slow down. These figures go to show that housing is considered a particularly solid investment, an investment focus even. Büllesbach, looking back in time, agrees that the market is set to stay on its upwards course: “The past curve of the Munich housing market shows that this sector has never seen a phase where real estate actually lost in value.” At the same time, Büllesbach points to the excellent outlook for the Bavarian capital, which boasts the best growth opportunities among large cities in Germany. “Furthermore, housing is a commodity which will likely stay scarce in Munich because of the local circumstances, and there’ll be a demand for secure investments in in

future too,” says the real estate expert. Even if office demand in Munich goes up again and some market players

might switch strategies and return to that segment, the demand for flats is set to remain high. After all, the market accounts for some EUR 500 mn of the total real estate turnover generated in Munich in 2009 (approx. EUR 1.7 bn). “There’s no end of the boom in sight,” believes Rupert Hackl, head of the Munich branch of Eurohypo. “Only two trends could provide for a sea change: On one hand, interest rate increases that secretly, yet constantly devour the return off those who have to finance a property.” Go for an investment now and you’ll have to pay approx. 25% more interest on a tenyear scheme than six months ago. “If the office market simultaneously develops new dynamics, higher return rates will make it more attractive. Potentially, funds and institutional investors may shift their focus of interest.” As a result, the boom would rub off. However, Hackl doesn’t see this as problematic: “In this case, we would simply re-shift our focus towards the office market, which would suit all of us just the same.” (cry)


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Thursday 3 March 2011


The world champion of labour market flexibility With the onset of the economic crisis, many workers were made redundant all over the world. Unlike elsewhere, however, unemployment figures have remained almost unchanged in Germany, since companies and the government have undertaken efforts to keep people in gainful employment using instruments such as short-time work and the like. Their plan has worked – to the effect that foreign nations have taken an interest in the “German job miracle”. What began as the subprime crisis soon turned into a global economic crisis. In mid-September 2008, Lehman Brothers, one of the largest investment banks in Wall Street, filed for insolvency proceedings. A few weeks later, Hypo Real Estate got into difficulties; since then, they’ve had to be supported with over EUR 100 bn of government guarantees. The banking institution abandoned its trade fair stand at Expo Real 2008, markets plunged into paralysis as they read the signs – the crisis had definitely reached Germany. Accordingly, real estate firms saw in the year 2009 with pessimism, as was shown in a survey the Federal Association of Free Real Estate and Housing Companies conducted among its members. 78% of respondents expected the industry to deteriorate, 31% intended to cut jobs.

Job cuts feared The first institutions to initiate restructuring and job cuts were banks like BayernLB. In early 2009, DTZ, Jones Lang LaSalle and Vivacon, Aberdeen’s Degi subsidiary and Deutsche Annington announced redundancies. In May and June 2009, just under half of the companies participating in the “Joboffensive” (Employment Offen sive), an initiative by Immobilien Zeitung, observed layoffs in the real estate sector. Researchers at the Institute for Employment Research (IAB) would have agreed since they expected major redundancies, too. When Lehman Brothers collapsed, the experts had no doubt that a drastic slump of the domestic product was unavoidable. “With a decrease of 5%, we were expecting a net figure of 1.5 mn to 1.8 mn more unemployed in Germany,” says Joachim Möller, IAB’s Director. However, they had to think twice – 2009 statistics only recorded 155,000 more people without a job. A miracle? Realistically speaking, a number of companies reacted to the recession with approaches quite different from redundancies. The academics gradually understood what exactly was happening in the labour market in the course of the year 2009. “The labour market behaved like

Germans are global champions when it comes to flexibility within companies. The system has already attracted attention abroad. Photo:

a proper role model,” Möller concludes. “The interplay between companies, bargaining partners and labour market policy-making worked well.” Workers took days off to reduce over time balances on their job accounts, company-specific alliances for employment resulted in cost savings. Not least, short-time work (see box) provided for flexibility. “Germany is the world champion when it comes to flexibility within companies. The German system is a role model,” says Möller. Some of the companies most severely affected by the crisis had been through an outright boom before – and complained about the lack of skilled labour. Faced with potential shortfalls, they had hoarded a workforce, not least because they were expecting new market opportunities in the medium term. With this strategy, they safeguarded around 100,000 jobs, says Möller.

EUR 4.57 bn for short-time work Some 400,000 jobs were kept through short-time work, Möller elaborates. The Federal Agency for Employment spent EUR 4.574 bn on this model in 2009 (of which EUR 2.975 bn was short-time benefits in the strict sense, paid for reduced working hours, and EUR 1.598 bn in social security contributions otherwise payable by employers and employees). Last year’s expenditure totalled EUR 3.060 bn (including EUR 1.680 bn in short-time allowance). For the first time in its history, the Piepenbrock group applied for shorttime work and respective benefits for the period between March and December 2009 for part of its workforce. When their workload hit rock bottom, some 7,000 hours of short-time work had to be filed. In retrospect, the group’s MD Arnulf Piepenbrock regards short-time work as the most important tool in personnel policies during the crisis, more relevant even than reduced working hours as such or the expiry of existing employment contracts and internal reallocation of staff.

In early 2009, his company was drawn into the maelstrom of the crisis. Although the group didn’t lose clients in its maintenance business, sales dropped by 40%. “I’d never seen such a grinding halt in business,” says Piepenbrock. At the peak of the crisis in June 2009, some 5.2% of Germany’s entire workforce, i.e. 50 of 1,000 people employed, were working short time under the government scheme. In the processing industries, their proportion amounted to 16.9%, contrasted by a low figure in the construction sector (2.8%). However, those affected in this industry had to reduce their working hours by 40%, which was higher than in the national economy as a whole (32%) or in the processing sector (31%). These figures were exceeded by the land and housing industry with an average reduction of hours per shorttime scheme by 41%, although it must be said that the total share of staff affected in this segment only amounted to 0.3%.

Estate agents were hit hard by the crisis, too. Short-time work was introduced for all disciplines except for property management, says Peter Rösler, Chairman of the Board of Management of BNP Paribas Real Estate Holding. Seesaw HR policy – heavy layoffs during a crisis, followed by a recruitment rush when it’s over – is a phenomenon he calls unhealthy. Personally, he’s been working in the company for 25 years and he’s proud of the fact that his company has always managed to keep all staff on board during crises but never had to take financial losses to the books. Just like this time. Zero redundancies, instead of which the company applied for short-time work starting from May 2009 (32 hours per week instead of 40) for about one third of its staff (450 in total). As an instrument, short-time work had been “the success vehicle” par excellence, Rösler firmly believes. When the market sprang to new life in late 2009, he simply stepped on the gas with his team of well-trained colleagues. Back then, Paul Krugman published an article in the New York Times titled “Germany’s job miracle.” In it, he favoured a labour market policy with an active approach to creating jobs. He recommends examining the German method in detail. As a matter of fact, foreign delegations were already touring Germany to learn more about the system at the time. “Today, employment is higher than before the crisis,” says Möller. “Even if some of the wounds of the recession have not yet healed completely, Germany’s in a better position than before the crisis as far as unemployment is concerned.” (sma)

The short-time model:

Continued employment instead of redundancies Short-time allowance under sections 169 et seq. of the German Social Code, Book III, was introduced to ensure staff can stay in gainful employment and avoid redundancies even during a period of temporary workload shortage. As soon as the market situation improves, companies are then in a position to rely on staff who are trained in what they do. This model wasn’t invented during the current crisis, though the prerequisites making you eligible for benefits have been adjusted several times in its course. For example, the maximum benefit period has been extended from six to 24 months by now. Crisis-related special provisions have been drawn up to apply until the end of March 2012. It’s a tool you can use when workload is substantially reduced for economic reasons or due to force majeure (such as floods), provided the event is only temporary and unavoidable. Workload is deemed as substantially reduced if the income generated by at least one third of staff in a company is more than 10% below standard due to shorter working

hours. Up to the end of March 2012, short-time subsidisation can also be applied for by companies when less than a third of their workforce meet this criterion. In order to be entitled to short-time money from the Federal Agency for Employment, employers and staff representatives (or the affected staff themselves) must have formally agreed on short-time work as they would with a bargaining agreement. Short-time allowance is paid by the agency, and it partly replaces the remuneration that is no longer due as people work shorter hours. In general, the allowance replaces 60% of the remuneration no longer due or 67% if at least one child lives in a household; for calculation purposes, remuneration is standardised to lump sums. In other words, if working hours are reduced by 30%, employees will only receive 70% of the usual gross remuneration from their employers. The Federal Agency will step in and pay 60% or 67% of the 30% net remuneration that’s withheld. Short-time pay provides relief for companies too because the agency reimburses at least 50% of social security contributions in proportion with the actual amount of reduced working time. (sma)

Thursday 3 March 2011

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How did you become Mr Mipim, Signor Rean? Although Filippo Rean is coming to Mipim in Cannes for no less than the seventh time, this year marks a turning point – it’s the first trade fair under his direction. An engineer by profession, Rean worked his way into the real estate industry on various consultancy jobs. Structural physics, construction and material science are a home turf for Rean (38), who was appointed the new Director of Mipim and Mipim Asia in October 2010. He has an engineering degree from Turin where he graduated from a five-year study course. Because of the language barrier, Rean didn’t spend his semester abroad in Germany, the country best known for engineering excellence, but in Belgium. Besides knowing Italian and French, Rean speaks English fluently. After college and a year in the army, he joined Procter & Gamble in Rome as a business analyst and in marketing before taking on new responsibilities in strategic consultancy with Bain & Company.

Mipim’s new Director (since October 2010): Filippo Rean.

When companies are appraised, their real estate often turns out to be the lion’s share of its assets – that’s why Rean took an interest in properties. He developed real estate skills and became a sought-after team member when real estate issues were on the agenda. During a two-year MBA course at the Harvard Business School, he honed his expertise even further.

Photo: Reed Midem

Rean isn’t only enthusiastic about the business side of real estate; he also loves architecture. The property that makes his heart beat faster is called Mole Antonelliana, Turin’s landmark. He loves taking guests to this 160-metre tower that he regards as an outstanding example of refurbishing projects. In 2005, Rean shifted gears again and decided to focus entirely on the

real estate industry. He joined GE Capital Real Estate in Paris, developing investment strategies. The last position he filled there was Director of Product Development, Europe. As he remembers those days, his eyes begin to sparkle – on the job, he developed a “360-degree view” of real estate markets. Together with his background in marketing, he’s now offering this knowledge for the benefit of Mipim’s organisation. When addressed as “Mr Mipim”, he bursts out laughing. However, Mipim’s new head is diplomatic when it comes to other topics; ask him what building in the world should be demolished, and he won’t give you an answer. Alternatively, ask him when Italy will be Mipim’s guest country of honour – all he’ll say is: “Nice question.” At least, Rean (father of two children, married to an Italian) isn’t shy to tell us his favourite place in Paris – despite his enthusiasm for real estate, it’s not a building but a garden near Palais Royal. (sma)


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Thursday 3 March 2011

Sights to see and places to go

Antibes Antibes is only a few miles from Cannes. Its picturesque old centre is located directly above the sea and surrounded by fortress walls. Picasso spent several months living and working in Château Grimaldi, where visitors can admire his works in the Picasso Museum. The artist has left his traces not only in Antibes, but also on other places on the Côte d’Azur, including in Cannes.



Mipim’s location definitely has a distinct advantage: temperatures in the south of France can reach 20 degrees in March, and the sea view certainly makes up for the complicated journey. What could be more delightful than prolonging your stay for a few days’ holiday? Cannes is a perfect starting point for trips to the surrounding area, where you can enjoy the French flair even more intensely away from the Palais des Festivals and the Croisette.

Carnaval de Nice What a shock for everyone from Cologne and Dusseldorf and all the other Mardi Gras fans: Mipim starts on Shrove Tuesday! But never fear, carnival addicts can get their fix on the Côte d’Azur – at the French-style Carnaval de Nice. The festival runs for two weeks, in 2011 under the motto “Roi de la Méditerranée” – King of the Mediterranean. The closing ceremony takes place on Shrove Tuesday (8 March 2011) from 8.30 pm, followed by the “burning of the king” with fireworks from 9.30. Entry is free. For more information, see

Iles de Lérins The Iles de Lérins are visible from Cannes, and can be reached by regular ferry connections. The islands of Sainte-Marguerite and SainteHonorat are open for visitors. Sainte-Marguerite is the site of Fort Royal, where the famous man in the iron mask was held in prison. There is also a maritime museum for the sea-lovers. Sainte-Honorat (photo) is home to a monastery where over 3000 monks once lived. Even today, monks still produce wine on the island, which is on sale along with other products they make.




It’s certainly possible to spend a whole day in Cannes itself outside of the trade fair as well. The magnificent Hotel Carlton is an absolute must, and can generally be viewed on the first day of events at the Mipim opening party. Another thing you mustn’t miss is a walk through the old quarter of Le Suquet with its many tiny restaurants


The medieval village of SaintPaul de Vence is the place to go for modern art lovers. Many different artists live in the village, which boasts numerous galleries. Saint-Paul de Vence is also the home of the Fondation Maeght, a private foundation for modern art housed in a building specially designed by various artists (including Chagall and Miró). Information:

and shops. And suddenly, once you’ve climbed high enough, you’re far from the madding crowd around the Palais. Don’t forget to take a stroll across the Marché Forville too, above the old harbour. The food market is open from Tuesdays to Sundays between 7 am and 1 pm. The same site hosts an antique market on Mondays, from 8 am to 6 pm. The city also boasts an art and handicrafts market on the weekend (Les Allées de la Liberté, 10 am to 6 pm).

Page 33

ating out in Cannes Le Mesclun

Café Florian

Rue Saint-Antoine offers a great choice of fine small restaurants, for instance Le Mesclun. With space for about 50 guests, it serves traditional French cuisine, classic yet innovative – but it is a little on the expensive side. 16 Rue Saint Antoine, Tel. +33 (0)4 93994519, 7 to 11 pm, closed on Sundays,

This brasserie serves what they call “harmony food”: organic ingredients, vegetarian platters and unusual vegetables (for instance Jerusalem artichokes). 1 Rue Florian, Tel. +33 (0) 4 93396579; Monday to Saturday 8 am to 11 pm, Sunday from 7 pm;


Thursday 3 March 2011

Le 360°

Le 360° The name says it all: the 360° is located on the roof terrace of the 1835 White Palm Hotel. Which means the guests benefit from a fantastic view of the bay and the old city. Unfortunately, the restaurant is so popular that it’s all booked up during Mipim 2011. 2 Boulevard Jean Hibert, Tel. +33 (0) 4 92997310


Chez Thérèse Très français – designed in Paris bistro style, this place serves traditional cuisine (including truffles, escargots, fish and meat specialities) with a fine selection of wines. 88 Rue Meynadier, Tel. +33 (0) 4 92991909; evenings only


This fish restaurant with sea view is just the place for garlic lovers. The menu features grilled fish, seafood and bouillabaisse. 13 Boulevard Jean Hibert, Tel. +33 (0) 4 93397222, closed on Sundays,

French food mixed with Japanese specialities (sushi, sashimi) is in store at Tantra. A DJ creates a club atmosphere in the lavishly decorated space. 13 Rue du Docteur Monod, Tel. 0033-(0)620794681 Open every day from 8 pm to 2:30 am,

Le Mesclun

L’Avion Lovers of Italian cuisine will find freshly made pasta and pizza baked in a wood-fired stove at L’Avion. 4 Rue Jean de Riouffe, Tel. +33 (0) 4 93394362, lunch and dinner until 11:30 pm


Cannes’ oldest restaurant was opened in 1860 – and has tickled the taste buds of Picasso, Sean Connery, George Clooney and Phil Collins. Want to take a piece of the atmosphere home with you? No problem: the paintings and antiques decorating the rooms are available for sale! 10 Rue Saint Antoine, Tel. 0033-(0)492992717; open for lunch and dinner;


Auberge Provençale

Le Madeleine


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Thursday 3 March 2011

On the move in Cannes

Bus transfer

Helicopter flights

Airport – Cannes: Express (no. 210 bus)

Stops in Cannes (going back): Hotel de Ville (bus station) – Rue des Serbes – Place Vauban (Bd. Carnot) Departure times, Cannes, Hôtel de Ville: Services operate daily every 30 mins between 8 a.m. and 6 p.m., plus two more buses at 7 a.m. and 7 p.m. Navettes Palais des Festivals – hotels: Like in past years, Reed Midem will organise a shuttle service from the hotels in Cannes to the Palais for trade fair visitors (roughly between 8 a.m. and 2 p.m.) and from the Palais to the hotels (roughly between 6.30 p.m. and midnight). Please enquire on the spot for exact departure times and to find out if your hotel is served, too.

Azur Hélicoptère Example: Cannes – Nice from EUR 350 Tel. +33 (0) 4 93904070 Heli Sécurité Saint-Tropez / Côte d’Azur Example: Cannes – Nice EUR 180 per passenger Tel. at Nice airport: +33 (0) 4 94555999

Car rental Sixt 50 Boulevard de la Croisette Tel. +33 (0) 8 20007498 Europcar 3 Rue du Commandant Vidal Tel. +33 (0) 4 93062630


Duration: approx. 50 mins; tickets: only available at the counter (Bureau des Bus); Rates: Single journey EUR 15.60; return EUR 25.50; reductions for under-25s and groups of four Stops in Cannes (coming from the airport): Place Vauban (Bd. Carnot) – Hôtel de Ville (bus station)

From Cannes to Nice in less than 10 minutes? It’s feasible if you charter a helicopter.


Airport departure times: Terminal 1 and terminal 2 – platform 3 in both cases; runs daily, every 30 mins between 9 a.m. and 7 p.m., plus two more buses at 8 a.m. and 8 p.m.


How do you get from Nice airport to Cannes or from the restaurant to the hotel? We’ve compiled all the relevant information for you. (bk)

Limousine service


PCA Chauffeurs Tel. +33 (0) 4 93991568

Allo Taxi Cannes Immediate bookings: +33 (0) 890 712227

GM Limousines International Tel. +33 (0) 4 93396020

Reservations (48 hrs before the journey): +33 (0) 892 780028



Impressum Investing in Germany Special Mipim Edition 2011 wird herausgegeben und verlegt von der IZ Immobilien Zeitung Verlagsgesellschaft mbH, Postfach 34 20, 65024 Wiesbaden, Tel. 06 11-9 73 26-0, Fax 0611-973 26-31, E-Mail

Verlagsleiter: Jan Mucha Chefredakteur (V.i.S.d.P): Thomas Porten


Redaktion: Bernhard Bomke Katja Bühren Albert Engelhardt (CvD) Friedhelm Feldhaus Gerda Gericke Thorsten Karl Nicolas Katzung Dagmar Lange Monika Leykam Brigitte Mallmann-Bansa Peter Maurer Anke Pipke Christine Rebhan Christine Ryll Christoph von Schwanenflug Sonja Smalian Martina Vetter Lars Wiederhold

bb tja ae ff gg thk nik dl mol ba pm api cr cry cvs sma mv law

Übersetzung: Markus Kowsky Redaktionsassistentin: Jennifer Mich Anzeigen: Markus Schmidtke Martina Walker Karsten Franke Sabine Krewel Uta Schuster Alice Schmidt (Marketing)

Projekte und Konzepte: Britta Kriechel


Druck: Verlagsgruppe Rhein-Main Druckzentrum Rhein Main Alexander-Fleming-Ring 2, 65428 Rüsselsheim Für Anzeigen und redaktionelle Beiträge einschließlich grafischer oder bildlicher Darstellungen werden Urheberrechte vom Verlag oder den jeweiligen Urhebern in Anspruch genommen. Mit Ausnahme der gesetzlich zugelassenen Fälle ist eine Verwendung von Veröffentlichungen des Verlags nur mit dessen schriftlicher Zustimmung statthaft. © 2011 für Texte und gestaltete Anzeigen beim Verlag. Nachdruck, Vervielfältigung und elektronische Speicherung nur unter Quellenangabe und mit schriftlicher Genehmigung gestattet.


Engel & Vรถlkers Commercial GmbH Phone +49-(0)40-36 13 10

Meet our crew at MIPIM. Dr. Georg Reutter Speaker of the Board of Management

Norbert Grahl Head of Credit Risk Management

Axel Jordan Head of National Business

Martin Gimber Head of Real Estate Centre Berlin

Matthias Till Head of Real Estate Centre Frankfurt

Dr. René Beckert Head of Real Estate Centre Munich

Mark Meissner Regional Director Real Estate Centre Berlin

Barbara Banschbach VR WERT Senior Appraiser

Matthias Weimer Head of Real Estate Centre Düsseldorf

Thomas NeumannVieweg Senior Manager Syndication

Ronald Vetter Senior Manager Syndication

Verena Quast Head of Credit Risk Management Europe

Christian Voss Senior Manager Syndication

Steffen Günther Head of Institutional Clients

Hans Henrik Dige Head of Real Estate Centre Hamburg

Harald Alber Head of Real Estate Centre Stuttgart

Janine Huffer Head of Syndication

Burkhart Munzel Managing Director VR WERT

Dr. Carsten Meyer-Raven Member of the Board of Management

Manfred Salber Member of the Board of Management

Anja Bühn Head of Sales Management

Paul Tewes Managing Director VR WERT

Kamill Wipyewski VR WERT Senior Appraiser

MIPIM 2011 – DG HYP welcomes you on board the Star of the Sea at ”Jetée Albert Edouard“.

Member of the Cooperative Financial Services Network Rosenstraße 2


D-20095 Hamburg


Phone +49 40/33 34-0


Fax +49 40/33 34-1111



Investing in Germany 2011  

Investing in Germany 2011 in english - Newspaper for MIPIM 2011

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