DGAP-News: TLG IMMOBILIEN AG / Key word(s): Study/Market Report
TLG IMMOBILIEN again records heightened investor interest in eastern
Germany
15.09.2015 / 10:05
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Press Release
TLG IMMOBILIEN again records heightened investor interest in eastern
Germany
- "Property Market in Berlin and eastern Germany 2015" - Market Report
published
- Highest transaction volume on Berlin property market since 2007
- Doubling of commercial investment in eastern German cities
- Booming tourism in Berlin and eastern German cities opens up new
prospects for investors in the commercial property market
Berlin, 15 September 2015 - TLG IMMOBILIEN AG today published its latest
annual Market Report, "Property Market Berlin and eastern Germany" in
which it again records extremely positive developments and trends in the
major commercial property markets of these regions.
Indeed, in 2014 the Berlin market for commercial property investments
recorded its highest transaction volume since of 2007. At just under EUR
4.28 bn, investment volume grew year on year by 19% and exceeded the
ten-year average by 27%. Office properties took the largest share of Berlin
transaction volume, with 40%. "Overall, the Berlin office market has
developed very positively, not only in prime locations, but especially in
established B-locations," says Niclas Karoff, Member of the Management
Board at TLG IMMOBILIEN, "Berlin is currently the focus of demand for
domestic and international investors".
Other eastern German growth regions are also attracting investors in ever
greater numbers. Compared to 2013, investment sales doubled in 2014, up
from EUR 1.36 bn. to EUR 2.7 bn. Investment in the Leipzig commercial
property market reached EUR 516 m last year, twice the 2013 total. The
greatest portion of this was in retail (36.6%) and office properties
(26.9%). Increased transaction volumes were also recorded in Magdeburg and
Dresden. In Magdeburg, commercial investment rose sharply in 2014 compared
to 2013 by 81% to EUR 156 m, about a third higher than the annual average
between 2004 and 2013 of around EUR 116 m. Compared to the previous year,
the 2014 Dresden commercial investment market registered a rise of almost
9%, reaching a transaction volume of EUR 336 m, equalling the 2004-2013
annual average (EUR 337 m).
Eastern German cities are not only attracting more investors, but also
greater numbers of tourists, which is having a positive impact on the
retail trade and hotel industry. With around 12 million tourists, overnight
stays at Berlin hotels reached a record level of almost 28.7 million, a
year on year rise of 6.5%. This result places the capital in top position
in Germany for overnight stays, and corresponds to 7% of all overnight
stays in the Federal Republic. From a Europe-wide perspective, Berlin is
now in third place directly behind London and Paris. Average occupancy
rates for the Berlin hotel industry were at a record high of 74.2% in 2014.
Thus, Berlin is now 7th among the top 20 hotel locations in Europe. This
sharp rise in key indicators is having a positive influence on the hotel
investment market, with around 2,800 new hotel rooms planned or currently
under construction.
Dresden reported an even higher year on year rise in overnight stays than
Berlin, with a surge of 7.6%. The attractiveness to tourists of other
eastern German cities like Leipzig, Magdeburg and Rostock was also greater
in 2014.
It is not just the positive developments in tourism that are creating
favourable conditions for investors in eastern Germany. The generally
positive economic trends, especially in Berlin, are also resulting in
investment opportunities. According to a report by the Institut der
deutschen Wirtschaft Köln (German Economy Institute in Cologne), Berlin,
Leipzig and Erfurt count among the ten most dynamic locations in Germany.
Positive economic growth is also resulting in rising populations and
falling unemployment rates in the eastern German cities. This is in turn
also impacting positively on local demand for commercial properties.
The Berlin commercial property market is developing especially quickly.
With a 5% decline in vacancy rates and sales of ââaround 609,000 sqm in
2014, Berlin tops the five largest office market locations in Germany. Six
out of seven major eastern German office markets also experienced a decline
in vacancy rates over the past year. Although not among them, Potsdam
recorded the lowest excess supply with an office vacancy rate of 4.9%,
followed by Rostock with 7.6%.
Rents were stable in almost all office markets in 2014. However, there were
again significant changes in Potsdam. Here, rents for prime offices with
low to medium utility value rose by around 6% to 9.50 EUR/sqm, while those
with good utility value climbed by as much as 12.5%. The latter commanded
square metre rates of 9.50-13.50 EUR in 2014. The Berlin office market
recorded a rise in average rents of 7.3%. However, in the top segment,
rental rates remained virtually unchanged at +2.3%. Thus, rental price
bands for office space in Berlin's best (1A) office locations were stable
in 2014 at around 20-23 EUR/sqm.
It is not just the eastern German office property market that is
experiencing positive trends, but also other sub-markets, such as the
retail property market. Berlin is attracting more and more international
retailers and, next to Munich, now counts as one of the ten most attractive
commercial locations in Europe. Due to increased demand for retail space in
2014, prime rents in the capital reached 300 EUR/sqm. Even Potsdam, Dresden
and Leipzig recorded rising rents, the highest to be found in the Leipzig
commercial centre where the rate for smaller retail space stood at 130
EUR/sqm.
Since 1993, TLG IMMOBILIEN AG has documented property market trends in the
eastern German cities of Dresden, Erfurt, Jena, Leipzig, Magdeburg, Potsdam
and Rostock as well as Berlin, based on approx. 2,000 analyses of internal
and external data. This market report provides important information on
prevailing economic and demographic conditions, office and retail rents as
well as investment volumes. It also presents key indicators relating to the
office, retail and hotel markets, as well as price bands in the hospitality
industry.
The complete study "Property Market in Berlin and eastern Germany 2015" is
available online for download at: www.tlg.de> News & Publications>
Publications,
Contacts
<pre>
Christoph Wilhelm Sven Annutsch
Corporate Communications Investor Relations
Tel: 49 30 2470 6355 Tel: 49 30 2470 6089
Email: christoph.wilhelm@tlg.de Email: sven.annutsch@tlg.de
</pre>
About TLG IMMOBILIEN AG
TLG IMMOBILIEN AG is a leading commercial real estate company focusing on
Berlin and growth regions in Eastern Germany. For over 20 years, TLG
IMMOBILIEN has been synonymous with real estate expertise in Germany's
East. TLG IMMOBILIEN generates stable rental income and exhibits low
vacancy rates, very good building stock and profits from its local
employees' excellent market knowledge. As an active portfolio manager, TLG
IMMOBILIEN is specialised in commercial properties for office and retail
use. TLG IMMOBILIEN focuses on managing a high-quality portfolio of office
properties in Berlin and other regional economic centres, as well as a
regionally diversified portfolio of retail properties in highly frequented
micro locations. The portfolio also includes five hotels in Berlin, Dresden
and Rostock. TLG IMMOBILIEN's properties stand out not only due to their
excellent locations but also because of their very long-term rental or
lease agreements.
As at 30 June 2015, the value of the properties under IFRS totalled EUR
1.622 bn. As at the same reporting date, the EPRA Net Asset Value per share
amounted to EUR 16.31.
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Language: English
Company: TLG IMMOBILIEN AG
Hausvogteiplatz 12
10117 Berlin
Germany
Phone: 030 - 2470 - 50
Fax: 030 - 2470 - 7337
E-mail: kontakt@tlg.de
Internet: www.tlg.de
ISIN: DE000A12B8Z4
WKN: A12B8Z
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Stuttgart
End of News DGAP News Service
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394553 15.09.2015
DGAP-News: TLG IMMOBILIEN again records heightened investor interest in eastern Germany
| Source: EQS Group AG