New confidence in German markets

International investors appear to have a renewed belief that Germany’s economy is starting to take off again and according to Axel Steinbrinker, CEO of German property firm Grossmann & Berge strong demand for property comes as no surprise: “For many foreign investors Germany’s political and economic stability make its property market an attractive proposition,” he said at MIPIM.

Real Capital Analytics calculates that cross-border investment into German markets increased by 24% in 2014 in comparison with 2013. And this trend seems to have increased since the year end with global investors targeting a diverse range of assets.

For example AEW Europe has signed an investment programme focused on German retail assets. It is working with its local partner Kintyre to source and structure investments in Germany and will initially look to build a €150m portfolio of assets in lot sizes of €5m to 15m. Contracts have been signed for the first acquisition and a further eight assets are currently under offer.

Kintyre managing partner Paul Shiels said: “We see considerable value at the moment in smaller transactions, located away from the large German cities. Retailers continue to trade strongly in these areas and this creates attractive asset management opportunities.”

Meanwhile Blackstone is targeting the logistics sector in Germany through its Logicor platform. It has just bought ten logistics assets totalling 400,000 sq m from TREI Real Estate, the property arm of the Tengelmann Group. The warehouses are located close to major urban centres including Düsseldorf, Munich, Berlin and Frankfurt. Tenants include Netto Marken-Discount, Kaiser’s Tengelmann, Hellmann Worldwide Logistics and Schenker Deutschland.

This is the sixth portfolio acquired by Logicor in Germany over the past year and increases its overall German portfolio to 1 million sq m. Logicor CEO and president Mo Barzegar said: “This acquisition was an opportunity to acquire a substantial portfolio in Europe’s largest logistics market. We now have a significant footprint in Germany with 28 assets leased to a broad mix of retail, third party logistics and manufacturing customers.”

And AXA Real Estate has shown its confidence in the core Frankfurt office market by commissioning a major revamp of the landmark die Welle office complex. Working with German architects Schneider + Schumacher, AXA will undertake a significant redesign of the open areas between the main two buildings, incorporating numerous green spaces, water features and chill-out zones.

AXA’s holdings at die Welle total 75,600 sq m in two buildings rising to a height of 50 m over 13 floors. Tenants include corporate consultancies, banks, law firms and financial service providers. Matthias Leube, managing director of AXA Investment Managers Deutschland said: “Located in a prime location of the city of Frankfurt, the iconic building is renowned for its modern space, representing timeless architecture and a high level of service which makes it a core property in Frankfurt.”

German projects on show at MIPIM 2015

Watch all videos from MIPIM 2015

 

Read more from the 2015 MIPIM Review!

 

 

Image: Image & Co. /

About Author

Graham Parker

MIPIM News editor-in-chief Graham Parker is a UK-based freelance journalist and editor. After taking a degree in English he trained as a surveyor before moving into real estate journalism. He is editor of Retail Destination and has been editor of Europroperty , property editor at Retail Week and European bureau chief for globest.com.

35 Comments

  1. Avatar

    Fantastic web site. A lot of helpful info here. I’m sending it to several
    buddies ans additionally sharing in delicious. And certainly, thanks for
    your sweat!

  2. Avatar

    Unquestionably believe that which you stated.
    Your favorite reason appeared to be on the web the easiest thing to
    be aware of. I say to you, I definitely get irked while people consider worries
    that they plainly do not know about. You managed to hit
    the nail upon the top and also defined out
    the whole thing without having side effect ,
    people could take a signal. Will probably be back to get more.
    Thanks

  3. Avatar

    Appreciating the hard work you put into your blog and
    detailed information you present. It’s great to come across a blog every once in a while that isn’t the same unwanted rehashed information. Great read!
    I’ve bookmarked your site and I’m including your RSS feeds to my
    Google account.

  4. Avatar

    Its such as you learn my thoughts! You seem to
    understand a lot approximately this, like you wrote the guide in it
    or something. I feel that you just can do with some percent to power the message house a bit,
    however other than that, this is magnificent blog.
    A fantastic read. I will definitely be back.

  5. Avatar

    Thank you for any other informative blog. Where else may I get that kind of information written in such
    an ideal means? I have a challenge that I’m just now running on, and I’ve been at the glance out for such information.

  6. Avatar

    I believe this is among the most important information for me.
    And i’m satisfied reading your article. However should
    observation on some general issues, The site taste is great, the articles is really great : D.
    Good activity, cheers

  7. Avatar

    Every weekend i used to visit this web site,
    for the reason that i wish for enjoyment, since this
    this web page conations really nice funny material too.

  8. Avatar

    Hello there I am so happy I found your blog page, I really found
    you by error, while I was researching on Google for something else, Nonetheless I am here
    now and would just like to say thanks a lot for a incredible post and a all round thrilling blog (I also love
    the theme/design), I don’t have time to read it all at the
    moment but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read much more,
    Please do keep up the fantastic jo.

  9. Avatar

    Pretty section of content. I just stumbled upon your web site and in accession capital to assert that I acquire in fact enjoyed account your blog posts.
    Anyway I will be subscribing to your augment and even I achievement you access consistently
    rapidly.

  10. Avatar

    Ahaa, its fastidious discussion on the topic of this post at this place at this weblog,
    I have read all that, so now me also commenting at this place.

  11. Avatar

    Hello, this weekend is fastidious in favor of me, for the reason that this occasion i am reading this enormous informative
    post here at my residence.

  12. Avatar

    Hi there to all, the contents present at this site are in fact awesome for people knowledge, well, keep up the good work fellows.

  13. Avatar

    Spot on with this write-up, I seriously believe this site needs far
    more attention. I’ll probably be back again to
    read more, thanks for the information!

  14. Avatar

    Ahaa, its good conversation on the topic of this paragraph here at this blog,
    I have read all that, so at this time me also commenting at
    this place.

  15. Avatar

    Thanks for your marvelous posting! I seriously enjoyed reading
    it, you could be a great author.I will be sure to bookmark your blog and will eventually
    come back down the road. I want to encourage yourself
    to continue your great work, have a nice morning!

  16. Avatar

    I’m amazed, I have to admit. Rarely do I encounter a blog that’s equally educative and engaging, and without a doubt,
    you have hit the nail on the head. The problem is something too few people are speaking intelligently about.
    I’m very happy I found this in my hunt for something regarding
    this.

  17. Avatar

    Thanks for sharing your thoughts. I truly appreciate your efforts and I will be
    waiting for your further write ups thanks once again.

Leave A Reply