Bouwfonds European Residential - Catella Real Estate AG

Fund Management Report
demand, in particular for single- and two-family houses, is
reflected in high rental and purchase prices. The development
project in Markt Schwaben, comprising 48 terraced
houses with full cellars, has total rental space of 5,470 m 2
and 48 underground parking spaces.
Berlin:
The federal capital with its around 3.4 million inhabitants is
the most populous city in Germany and is also the centre of
the Berlin-Brandenburg metropolitan area. This makes it one
of Europe’s most important political, cultural and scientific
centres. The service sector dominates Berlin’s economy,
accounting for almost 83% of the workforce. Of the major
German cities, only Frankfurt has a higher service sector
ratio. As an important agglomeration area, Berlin will
continue to profit from future demographic change. Not only
will it experience relatively stable population levels, but it will
also benefit from an increase in the number of households.
Steglitz-Zehlendorf is one of Berlin’s most expensive
addresses in which to rent property, surpassed only by
Charlottenburg-Wilmersdorf. This district, with its 288,000
or so residents, has an excellent social structure. Its appeal is
attributable in part to the extensive range of leisure facilities
and green areas, as well as a very convenient transport infrastructure.
The property, which is situated in a quiet location
with substantial green areas, consists of a 4- to 12-storey
apartment complex built between 1970 and 1971. Previously
in private hands, the property was always well cared for;
nevertheless, we are planning to make further energy
management-related improvements over the coming years.
The complex comprises a total of 235 apartments with
aggregate living space of 16,440 m2. Access is provided
through ten entrances. There is also an underground garage
with 136 parking spaces as well as 84 outside parking spaces.
The strategy is to maintain or further reduce the low vacancy
rate and to let the property in the long term.
Hamburg:
Hamburg, a federal city state and Germany’s second-largest
city (1.78 million inhabitants), is North Germany’s commercial
centre and hence one of Northern Europe’s most important
hubs. The city and metropolitan area of the same name
have undergone a structural change to become a service,
trade and media location.
Jobs in the maritime industries have been replaced by positions
in the tertiary and quaternary sector, even though the
Port of Hamburg remains one of Europe’s most important
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logistics centres. Nonetheless, large sections of the port are
experiencing urban renewal, being repurposed for office and
retail use as well as seeing the development of new urban
districts. The district of Harburg, which is located on the
southern banks of the River Elbe, is well integrated with
Hamburg’s transport infrastructure. The area, which mainly
focuses on providing industrial added value, is home to
around 200,000 people. The Hamburg-Harburg property has
nine four- and nine-storey apartment blocks built between
1960 and 1962 on land encumbered with heritable building
rights. Extensively refurbished and now offering state-of-theart
energy management, among other things, these buildings
contain a total of 245 apartments with aggregate living
space of 16,605 m 2 that can be accessed through 22
entrances. The complex also has 41 outside parking spaces.
At the time of notarisation, around 2.2% of the apartments
were vacant.
The strategy for the property is to sign long-term letting
agreements, allowing the Fund to benefit optimally from the
positive developments on the Hamburg real estate market.
Ville-la-Grand, France:
BER made its first acquisition outside Germany in February
2009. The complex in question is a new development in
Ville-la-Grand, located approximately 10 km from Geneva’s
city centre. The area is home to a large number of commuters
who live in France but work in Geneva, due to the significantly
higher salaries in Switzerland. Demand for housing
on the French side is high as rents and purchase prices here
are up to 20% lower than in Switzerland. The development
project, which will be completed in 2010, comprises 45
residential units with an aggregate of 2,740 m2 of living
space and 58 parking spaces. Construction work is progressing
according to plan.
Developments at existing properties
Technical, portfolio and Fund management have evaluated
the return for the period under review at property and portfolio
level and have established the strategies and the related
technical and commercial budgets for financial year
2009/2010. The original property strategies have been
retained for the properties in Frankfurt, Hamburg-Harburg,
Berlin-Steglitz and Kiel. In these cases, the Fund is continuing
to aim for full occupancy, which will generate stable cash
flows. The investment in new builds and modernised housing
stocks significantly reduces maintenance costs. The