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German Real Estate Markets
Property EU Germany Investment Briefing
Dr. Thomas Beyerle
London, September 6th 2016
SECTION European economy - Real Estate market in Europe
European transaction volume vs. available capital
2
Source: Catella Research, RCA
0
50
100
150
200
250
300
2015
0
50
100
150
200
250
2007
0
50
100
150
200
250
2013
Available capital for Real Estate Investments
Source: Catella Research 2015, IMF, FED, BIZ, Bloomberg, Deutsche Bundesbank, Thomson Reuter, INREV, RCA
EUR
226
billion EUR
140
billion
EUR
285
billion
EUR 250 billion
EUR 320 billion
EUR 505 billion European transaction volume
*All Assets: office, retail, industrial, hotel, residential
0
50
100
150
200
250
300
350
2016
EUR
290 -
320
billion
EUR 700 billion
3
SECTION European economy
Consumer spending drives economy
• The ongoing moderate recovery is projected to continue, with GDP growth reaching 1.7% in 2017. Sustained monetary stimulus and low oil prices will support domestic demand, but the slowdown in emerging market economies will weigh on exports. As a result, the large external surplus will decrease slightly. The decline in unemployment should also continue at a modest pace, but differences across euro area countries will persist.
• Monetary policy should remain accommodative until inflation is clearly rising to the target. Completion of the banking union would improve monetary policy transmission and strengthen confidence. Countries with fiscal space should use fiscal stimulus to support aggregate demand, especially through infrastructure investment.
• Falling oil prices and improved purchasing power have meant that the European consumer has been a surprising driver of economic growth over the last year. However, with the cost of oil now stabilising, the labour market will need to provide more jobs and higher wage growth for this trend to continue.
• Further monetary easing by the ECB has helped lending conditions and investment activity is showing some signs of life. That said, it remains a long way off pre-recession norms, a continuation of which will further hinder long-run growth potential.
• The UK’s EU referendum on June 23rd, threatens the departure of large and influential member state. At the very least, this would lead to a period of prolonged uncertainty regarding Britain’s relationship with the EU. The crisis in Syria has heightened immigration concerns, which, alongside stagnant wage growth and widening inequality, has given rise to populist candidates and protectionist policies on both sides of the Atlantic.
Unemployment rate, %
Consumer spending, %
Annual development of gross domestic product, %
Source: ECB, Eurostat, IMF, Catella Research
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Germany EU-28 EU-19
6.0
8.0
10.0
12.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Germany EU-28 EU-19
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Germany EU-28 EU-19
SECTION The German real estate market
Key figures
4
QUICK STATS 1HY 2016 COMPARED TO 1HY 2015
Commercial transaction
volume € 18.1 billion -33 %
Prime office yield
(average TOP5) 3.93% -35 bp
Prime yield high street
retail (average TOP 5) 3.45% -33 bp
Prime office yield
(average B-location) 5.50% -20 bp
Prime yield Shopping
centre
4.35% -20 bp
Prime yield logistic 5.95% -35 bp
Volume per type of asset in Germany Commercial transaction volume, TOP 5 markets
Commercial transaction volume
Source: Catella Research, RCA
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
In €
bill
ion
First half year Second half year
7602
4163
1901
905
2172
1357
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Office Retail Industry Mixed use Hotel Others
In €
mill
ion
1HY 2013 1HY 2014 1HY 2015 1HY 2016
2050
801
1650
2100
2610
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Berlin Dusseldorf Frankfurt Hamburg Munich
In €
mill
ion
1HY 2013 1HY 2014 1HY 2015 1HY 2016
53%
47%
63%
37%
domestic investors foreign investors
SECTION The German real estate market
Key figures TOP markets
5
• Cross border investments in German Top 5 markets decreased in the first half of 2016 to €
3.4 billion representing a share of 37% compared to 47% in the first half of 2015. The
decline is not due to falling demand but rather a result of scarce supply.
• Further on declining office prime yields in all Top 5 markets to a current average of 3.93%,
a decrease of 35 basis points compared to the previous year.
• The shift to 2nd tier locations have further established resulting in a further decline in yield
spreads. In the course of the year we expect that the decline in risk premiums is likely to
continue.
• In short to medium term prime yields in the Top 5 markets will decrease further but at a
slower pace, due to scarce supply and increasing demand shifting towards B-locations
Cross-border proportion Top 5 markets
Office Prime – Yields (%)
2016 1HY
total Top 5
volume
€ 9.2bn
2015 1HY
total Top 5
volume
€ 11.2bn
Source: Catella Research, RCA
3.00
3.50
4.00
4.50
5.00
5.50
6.00
2008 2009 2010 2011 2012 2013 2014 2015 2016
Berlin Dusseldorf Frankfurt Hamburg Munich
SECTION The German real estate market
Key figures TOP markets
6
• Acquisitions in German Top 5 markets reached a share of 51% of total investment volume in
Germany in H1 2016. Last years share amounted to 46% in H1 2015. Nevertheless the volume in
German Top 5 markets dropped by approx. 18%.
• Demand from investors remains very high. That the transaction volume was not greater is primarily
attributable to the fact that purchasers remain highly focused on core assets.
• Demand for commercial property in Berlin continued unabated in the first half of 2016 and the boom
in demand is expected to persist in the second half of the year. However, since supply is clearly
incapable of keeping pace with demand, further yield compression is expected.
• Düsseldorf is currently witnessing high levels of construction activity, which will create further new
investment opportunities, including large mixed-use quarters.
• The transaction volume in Frankfurt’s commercial investment market declined markedly (-41%). This
was not attributable to a drop in demand but to a scarce supply of core properties. Many investors
are seeking properties with relatively secure income with long-term leases. This trend is also
expected to persist over the coming months.
• Many owners in Munich are refraining from selling, particularly in the core segment. Consequently, B-
locations such as the Arnulfpark are attracting high levels of demand from investors, resulting in yield
compression. Nevertheless, since the majority of purchasers remain risk-averse, peripheral locations
with less favorable fundamentals are rarely benefiting from this shift in focus.
Transaction volume by type of use “Top 5” markets
2016 1HY
total Top 5
volume
€ 9.2bn
2015 1HY
total Top 5
volume
€ 11.2bn
Source: Catella Research, RCA
61% 13%
6%
11%
9%
Office Retail Industry Hotel Others
63%
21%
3%
8% 5%
SECTION The German real estate market
Yield compression continues
7 Source: Catella Research
Prime market yields
• Demand for core-office properties is still high and even more and more investors are seeking for opportunities in 2ND –tier locations. Yields are
expected to sharpen further supported by robust occupational fundamentals.
• With the persistent lack of quality space and a development pipeline unlikely to satisfy rising occupier interest, the demand/supply imbalance is
expected to continue across most prime locations in 2016.
• In addition value-add properties with great upside potential enjoy higher interest.
• Investors are looking for project developments with a low pre-lease rate to secure potential core assets at an early development stage as well.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
10 YR government bond yields Office prime yield Retail prime yield
SECTION The German real estate market
Yield bottom not yet reached
166 bp
• Prime office yields in German Top 5 markets decreased significantly in 2015 by approx. 40 basis points and marks the highest decline since
2006.
• German B-locations also registered the strongest yield compression in the first quarter since 2010 by approx. 16 basis point compared to
2015.
• Conversely the further reduction in returns on government bonds means that the gap to office prime yields remains at an historic high.
• There will be even stronger yield compression in all non-core segments, such as all secondary and tertiary locations, markets outside of the
the top locations and less liquid market segments. Consequently risk premiums will contract further.
Office prime-yields Top 5 vs. B-locations Commercial transaction volume, Top 5 vs. Rest of Germany
Source: Catella Research,
5.0 9.2 11.1 13.7
16.7 19.8
26.8
3.5
5.5
10.1 12.0
11.7
14.0
20.2
28.5
4.37
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2009 2010 2011 2012 2013 2014 2015 2016
€ b
illio
n
Top 5 Rest of Germany
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
%
TOP 5 B-locations
8
9
SECTION C - The German real estate market
Largest Investment transactions in 2016
DATE NAME ADDRESS CITY ASSET
CLASS
YEAR
BUILT PRICE IN €
CAP
RATE BUYER SELLER
Apr-16 NRW Apartments Apartment 600.000.000 LEG Vonovia SE
Mar-16 Baywa HQ Arabellastrasse 4 Munich Office 1969 280.000.000 4,0% UniCredit - WealthCap Competo Capital Partners JV
BayWa AG
Jan-16 Debis Haus Marlene-Dietrich-Platz
5
Berlin Office 1997 226.700.867 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
Jan-16 Kollhoff-Tower Potsdamer Platz 1 Berlin Office 1999 194.790.195 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
Jun-16 IBC Complex
Building C
Theodor-Heuss-Allee
70
Frankfurt Office 2003 189.178.941 GEG German Estate
Group
RFR Holding
Jun-16 IBC Complex
Building B
Theodor-Heuss-Allee
72
Frankfurt Office 2004 166.252.550 GEG German Estate
Group
RFR Holding
Mar-16 Berlin Portfolio Berlin Apartment 165.000.000 Immeo Wohnen Arztekammer Steiermark
Jan-16 Potsdamer Platz
Arkaden
Alte Potsdamer
Strasse 7-13
Berlin Retail 1998 162.838.884 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
May-16 German High Street
Assets
Retail 150.000.000 Corestate Capital
Apr-16 Designer Outlet
Wolfsburg
An Der Vorburg 4 Wolfsburg Retail 2007 150.000.000 BNP Paribas REIM JV
Invesco RE OBO BVK
Europa Capital JV Outlet
Centres International
Apr-16 German Retail Fund Retail 141.683.101 Patrizia Savills Investment Mgmt
Mar-16 Victoriastadt Lofts Schreiberhauer
Strasse 30
Berlin Office 1927 130.000.000 5,1% Schroder RE Invt Trust
OBO Immobilien Europa
Direkt JV Ilmarinen
Colony Capital REIT
Feb-16 FRM Portfolio Apartment 124.000.000 Heitman Grainger plc
Jan-16 B! Forum Tower Potsdamer Platz 11 Berlin Office 1999 113.685.339 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
Jan-16 B4 Linkstrasse 2 Berlin Office 1998 113.525.042 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
Mar-16 Telekom Campus Kapstadtring 2A Hamburg Office 113.333.333 Amundi Real Estate TAS KG
May-16 Meandris Europa-Allee 48 Frankfurt Office 2014 105.000.000 Triuva Strabag RE GmbH
Jan-16 Linkstrasse A Eichhornstrasse 3 Berlin Office 1998 103.454.917 3,5% Brookfield Property
Partners JV KIC
Savills Investment Mgmt
Source: Catella Research
SECTION The German real estate market
Expectations for 2016
Source: Catella Research
• Real Estate Market benefits from a positive economic
environment and still historic low interest rates
• Office markets will register increasing take-up`s and
prime rents. Consequently vacancy rate will decline further
• Further yield compression in Core segment as well as
non-core assets in 2ND-tier and 3RD –tier locations
• Investors will move up the risk-curve
• The demand/supply imbalance is expected to continue
across most prime locations
• Strong cross-border activity, especially from US and Asia
• .. And of course the rise of resi......
1
0
Catella in Germany
Berlin
Neues Kranzler Eck, Kurfürstendamm
21
10719 Berlin
Tel.: +49 (0)30 31 01 93-0
Fax: +49 (0)30 31 01 93-109
Dusseldorf
Hofgarten Palais, Bleichstraße 8-10
40211 Düsseldorf
Tel.: +49 (0)211 527 00-0
Fax: +49 (0)211 527 00-110
Frankfurt
FBC, Mainzer Landstraße 46
60325 Frankfurt am Main
Tel.: +49 (0)69 310 19 30-0
Fax: +49 (0)69 310 19 30-107
Hamburg
Neuer Wall 39
20354 Hamburg
Tel.: +49 (0)40 21 111 28-0
Fax: +49 (0)40 21 111 28-100
Munich
Karolinen Karree, Karlstraße 14
80333 München
Tel: +49 (0)89 54 59 56-0
Fax: +49 (0)89 54 59 56-100
info@catella.de
www.catella.de
The link between
property and
finance™
German residential market
SECTION A
13
Strong demand for residential properties in metropolitan areas
and in locations with a positive population balance is clearly
based on urbanization effects and a structurally good
economic foundation in Germany.
In the last few years, housing markets in large cities have
been characterised by substantial rent rises. The main driving
force behind this has been a sharp rise in the number of
inhabitants. The population in Germany's seven top locations
has increased by almost 10 per cent since 2000.
Population growth and hence the increase in demand for housing has been strongest in Munich where the number of
inhabitants has increased by almost 20 per cent since 2000.
Frankfurt is in second place with an increase of 12 per cent.
Even in Dusseldorf, which has had the slowest population
growth, the number of inhabitants has still increased by 6 per
cent.
The proportion of vacant flats has fallen steadily in the last
few years. Housing demand can practically no longer be met
from the existing stock, which means that new builds are
becoming ever more important.
Residential stock and average apartment size in Germany
Source: Destatis
2010: Ab 2010 Ergebnisse auf Grundlage der Gebäude- und Wohnungszählung
2011
Population change Germany vs. Top 7 markets
Source: Destatis
Ab 2011: Ergebnisse auf Grundlage des Zensus 2011
SECTION A – German residential market
Germany is raising but supply remains low
80
82
84
86
88
90
92
94
36,500
37,000
37,500
38,000
38,500
39,000
39,500
40,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Avera
ge a
part
ment siz
e
thousands
Residential stock Average apartment size
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
annual change Germany annual change Top 7
14
Rent development in Germany, newly build apartments vs. all years of
construction
Apartment rents increased further in Q2`16 but at a slower pace than prices for condominiums. Compared to Q1`16 rents in Germany increased by 0.6%, 0.9% in cities and 0,4% in counties. Compared to the same quarter of the previous year (Q2`15) rents all over Germany went up by 3.1%.
Since 2004 rent for newly built apartments in Germany therefore increased by 22.1%
We expect a further rise in rents for flats. Consequently, rents are likely to continue to converge towards the mostly higher level of rents in many European cities.
However, the pace of the rise is likely to be well below the level in previous years.
SECTION A – German residential market
Rents increasing further but at a slower pace
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EU
R/s
q.m
.
newly bult all years of construction
Source: Catella Research,, ZIA
15
German cities with launched rent control
What?
The rent control regulates rents for existing apartments
(let and used before 1. October 2014) in announced
residential districts and large cities. Therefore rents for
releasing apartments may not exceed the comparative
rent by more than 10%.
Where?
The rent control obtain cities with a “tense residential
market”. Each German state determine these markets by
itself
Why?
The rent control prevents enormous rent increases by
20% or 30% in sought after residential districts/markets.
When?
The law was launched on June 1 2015
SECTION A – German residential market
German rent controls – key figures
Rent control since
Source: Catella Research, Die Welt
16
Change in asking rents 2012 to 2015, all years of completion
On June 1, 2016, the much-discussed rental brake has
been in force for more than a year. Since then, the rental
brake has been implemented in 308 German cities.
It remains to be seen whether rent control will also have
an impact. Although new builds are exempt from this new
measure, the cap/slowing in rent increases for existing
flats will increase the rent gap between new or completely
renovated flats and existing stock.
The rent gap between newer flats (later than 2000) and
existing stock is already evident in cities like Nuremberg,
Dresden, Munich and Augsburg. The biggest gap of
increase can be seen in Leipzig with 56%.
Even investors seem to be of the opinion that the
regulations will have no substantial effect in the future: the
causal effects of the rental brake on the development of
housing prices—as a reflection of future rental income—
are relatively small.
In order to provide a sustainable solution to the housing
shortage, priority should be given to measures that
stimulate an expansion of construction activity and make
the housing supply more flexible.
From a social policy point of view, a temporary rental
brake can still be justified. It must, however, be structured
in such a way that it does not restrict incentives for
housing construction in the future. Source: Catella Research, empirica,
SECTION A – German residential market
Rent controls: no effect to date
19.9%
17.1%
14.0%
13.4%
12.6%
11.5%
11.4%
10.1%
9.6%
14.80%
21.80%
11.10%
20.40%
56.40%
9.90%
12.70%
16.70%
8.22%
0% 10% 20% 30% 40% 50% 60%
Berlin
Augsburg
Hannover
Munich
Leipzig
Dortmund
Dresden
Nuremberg
Cologne
year of construction later than 2000 all years of construction
Catella yield / risk profile Germany 2016
SECTION B
SECTION B – Catella yield / risk profile for residential market in Germany
Catella housing market ranking – Top25 locations
1
8
An assessment of the geographic distribution of the top
25 locations shows that the strong housing markets are
clearly clustered in northern and southern Germany.
Eleven of the top 25 locations are in Bavaria and the
Rhine-Main area. A further seven are situated in Lower
Saxony and Bremen.
It is notable that many top 25 cities have middling to low
levels of market liquidity, i.e. these cities offer a low
volume of housing investments.
In line with economic principles, assuming a
corresponding level of demand, a low volume of supply
is reflected in higher prices.
Accordingly, in addition to the yield and
the performance of the housing market
in question, the available volume of
investments should also be considered.
Source: Catella Research
SECTION B – Catella yield / risk profile for residential market in Germany
Yield / risk profile for residential markets in Germany 2016
1
9
Potential
Investmentcorridor
Source: Catella Research
SECTION B – Catella yield / risk profile for residential market in Germany
Yield / risk profile for residential market in Germany 2016
2
0
Potential
Investmentcorridor
Potential Investmentcorridor:
• Hannover
• Bonn
• Potsdam
• Darmstadt
• Wolfsburg
• Erfurt
• Osnabrück
• Bremen
• Dortmund
• Hildesheim
• Duisburg
• Braunschweig
Source: Catella Research
Residential investment market
SECTION C
22
In view of the extremely attractive fundamental data and
favourable (growth) prospects from an investor's perspective, it is
almost logical that the German residential market has also attracted large amounts of international capital in recent years.
A total of almost €70bn was invested between 2010 and 2015,
with Germany attracting around half of the capital invested in
European residential property during this period.
There has been a marked fall in the volume of transactions in the
investment market for residential property in the first half of 2016
of -57% compared to H1`15. The decrease is mainly due to the
lack of largescale transactions. Analysed in greater detail, the five largest deals in the first six months generated a mere €690 million.
Thus, not only does the German residential market stand out with
attractive and stable conditions, it is simultaneously one of the
most liquid residential investment markets in the world.
When the historically low bond yields are added to the equation,
the German residential market therefore remains a sensible
cornerstone of portfolios, particularly for risk-averse investors.
Consequently, two investor groups, namely property companies
and special funds, have been the principal net investors in the
market over the lastfive years
Since these investors also make their allocation decisions based
upon the relative attractiveness of property compared with other
asset classes, and primarily bonds, the yield differential between
residential property and long-term bonds is a principal allocation
criterion.
Since this environment is not expected to change in the current year or next year in view of continued expansionary monetary
policy, at least from the European Central Bank, demand for
residential property in Germany will remain high.
Residential transaction volume in Germany and Europe
Prime net yields and Government bond yield
SECTION C – Residential investment market in Germany
German residential investment market is the most liquid in the word
0%
10%
20%
30%
40%
50%
60%
70%
€ -
€ 5
€ 10
€ 15
€ 20
€ 25
€ 30
€ 35
€ 40
2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016
share
EU
R b
illio
n
Germany Europe German share
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
In %
10Y Government bond yield
Office Top 7
Retail Top 5
Source: Catella Research, RCA
23
This substantial demand is faced with a limited supply. In recent years, there has been more capital in the market than it has been
ultimately possible to invest. This surplus demand has led prices to grow at a faster rate than rents, causing a corresponding
hardening in initial yields.
The yield compression is highly likely to continue this year in view of the sustained high risk premium compared with bonds, albeit
at a slower pace.
Although the looming rise in bond yields should dampen demand for residential property in the medium to long term, the
significant surplus demand will persist at least for the current year.
A not insignificant reason why there will still be purchase opportunities for investors going forward is that prices have risen so
sharply in recent years. This will enable investors that bought early in the cycle to bank significant capital gains. For owners with
no long-term commitment to the residential property market, it may therefore be sensible to realise these gains and part with
(some of) their holdings.
The rapid growth in the development segment is also creating purchase opportunities. Last year alone, the transaction volume for
development projects totalled more than €1.7bn, which represented an increase of almost one fifth compared with the previous
year. In view of the rising development activity, investors will be able to invest significantly more capital here over the coming
years.
Residential transaction volume in German A-cities vs. rest of Germany
SECTION C – Residential investment market in Germany
High demand versus low disposals
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016
EU
R b
illio
n
German A cities Rest of Germany
Source: Catella Research, RCA
24
The micro-living segment often sits between the poles of living and
lodging and includes apartment buildings, student accommodation
and serviced apartments.
In the investment market, there has been a noticeable and
significant increase in demand for micro-living assets over the last
two and a half years, particularly for student accommodation.
Accordingly, the transaction volume for micro-living property in
Germany has risen to its highest level recorded to date. Properties
changes hands for a total of around €440m during the first seven
months of this year, already significantly exceeding the annual
totals for the last two years (€331m in 2014 and €371m in 2015).
With a worldwide transaction volume of around €16.5bn last year,
capital flows into micro-living assets were greater than ever before.
While the German investment market remains significantly behind
the most mature market, Great Britain, in terms of volume, the
growth rate in Germany is considerable (+139% compared with the
corresponding period in the previous year).
The rising interest of both domestic and foreign investors in German
micro-living property is explained by the positive projections for the
segment. Demand for small residential units is likely to increase
further for a number of reasons:
1. The number of single-person households in Germany has risen by
an average of 210,000 households per year since 1992 and,
according to projections, will rise by a further 1.1 million by 2030
(compared with 2012).
2. The number of students has reached a new all-time high of 2.75
million. Despite a moderate long-term decline, university entrant
numbers will remain high and, in view of the rising mobility of
students and the strained housing markets, we expect demand for
student apartments to increase.
3. Mobility is also increasing in the world of work.
Transaction volume of mico-living properties
SECTION C – Residential investment market in Germany
Micro apartments: an increasingly sought after segment
Source: Catella Research, RCA
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
12 m
onth
rolli
ng, E
UR
bill
ion
Global Great Britain Germany
25
SECTION C – Residential investment market in Germany
Residential investments 2016
Date Property Name Market Units Price in
€Mln
Price in
€/sq.m. Buyer Seller
Jan-16 NRW Portfolio - 13.800 600 43.478 LEG Vonovia SE
Mär-16 Berlin Apartments Berlin 945 165 174.603 Immeo Wohnen -
Jul-16 Berlin Apartments Berlin 1877 218 116.143 ADO Properties -
Feb-16 FRM Portfolio - 1.595 124 77.743 Heitman Grainger plc
Mär-16 Apartment Portfolio - 2.700 103 38.148 - Corestate Capital
Feb-16 Berlin Lichtenrade Berlin 860 83.7 97.326 Mahren Holding Deutsche Wohnen AG
Jun-16 Rhein/Main Portfolio - - 80 - ZBI -
Jun-16 NRW Apartment - 1.100 73 66.364 LEG Grainger plc
Jun-16 Leipzig apartments Leipzig 717 65.4 91.213 LWB mbH -
Mär-16 Postplatz Dresden 242 63.4 261.983 - CG Gruppe
Mär-16 Olympia Karree München 345 60 173.913 DREF MIK GmbH
Feb-16 Blue Horizon Frankfurt Main 118 55 466.102 - Unmussig
Bauträgergesellschaft
May-16 Berlin apartments Berlin 329 55 167.173 DSR Deutsche
Investment -
Jun-16 Berlin Apartments Berlin 486 55 113.169 Phoenix Spree -
Apr-16 Portfolio - 1.223 55 44.971 Arsago Real Estate DRV
May-16 Panorama Baakenhafen Hamburg 142 54.2 381.250 BMO RE Partners Justus Grosse GmbH
Source: Catella Research, RCA
German residential sector still an hotspot
Continued high attractiveness for housing in tier 1 and 2 cities
Main push factors: urbanization, money market bubble, security doctrine
Yield range shows a wide - attractive – spectrum
M&A expected next quarters
Long-term challenges:
energetic requirements
demographic development
Integration of immigrants
26 Source: Google-Picture
SECTION C – Residential investment market in Germany
Conclusion
Catella in Germany
Berlin
Neues Kranzler Eck, Kurfürstendamm
21
10719 Berlin
Tel.: +49 (0)30 31 01 93-0
Fax: +49 (0)30 31 01 93-109
Dusseldorf
Hofgarten Palais, Bleichstraße 8-10
40211 Düsseldorf
Tel.: +49 (0)211 527 00-0
Fax: +49 (0)211 527 00-110
Frankfurt
FBC, Mainzer Landstraße 46
60325 Frankfurt am Main
Tel.: +49 (0)69 310 19 30-0
Fax: +49 (0)69 310 19 30-107
Hamburg
Neuer Wall 39
20354 Hamburg
Tel.: +49 (0)40 21 111 28-0
Fax: +49 (0)40 21 111 28-100
Munich
Karolinen Karree, Karlstraße 14
80333 München
Tel: +49 (0)89 54 59 56-0
Fax: +49 (0)89 54 59 56-100
info@catella.de
www.catella.de
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