german real estate markets property eu germany investment ... · quick stats 1hy 2016 compared to...

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


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


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


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


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


61% 13%

6%

11%

9%

Office Retail Industry Hotel Others

63%

21%

3%

8% 5%


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


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


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


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


Jan-16 B4 Linkstrasse 2 Berlin Office 1998 113.525.042 3,5% Brookfield Property

Partners JV KIC


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


Source: Catella Research


Expectations for 2016


• 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

[email protected]

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.


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


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,


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.



Yield / risk profile for residential markets in Germany 2016

1

9

Potential

Investmentcorridor



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


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


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


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


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


Micro apartments: an increasingly sought after segment


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


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


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


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

[email protected]

www.catella.de

The link between

property and

finance™

german real estate markets property eu germany investment ... · quick stats 1hy 2016 compared to...

Documents