Bouwfonds European Residential - Catella Real Estate AG

More documents

Recommendations

Info

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 Jobs in the maritime industries have been replaced by positions in the tertiary and quaternary sector, even though the Port of Hamburg remains one of Europe’s most important 10 logistics centres.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
modernisation measures that had already been planned for Berlin-Steglitz when it was purchased will lead to adequate rent increases in the medium term. Awareness of the Markt Schwaben property – and hence its rental appeal – are to be raised using an original promotion campaign in collaboration with a well-known Munich radio station. This marketing concept has proven to be very successful for similar property types, including some in the same region. The Fund’s management is convinced that this campaign (launched on 15 June 2009) will significantly increase letting rates by raising awareness of the complex on the one hand and putting across the quality of living that our houses offer on the other. Vacancies Due to the ongoing leasing phase in Markt Schwaben, Fund vacancies currently amount to some 20%. The remaining properties have average vacancy rates of 2-4%, which are due to ongoing changes of tenants. Human resources and organisation Bouwfonds Real Estate Investment Management is responsible for portfolio and asset management under the overall aegis of Catella Real Estate AG Kapitalanlagegesellschaft. Bouwfonds is a subsidiary of Rabobank, which has a AAA rating, and employees some 2,000 people. Within Bouwfonds Real Estate Investment Management, this task is performed by a portfolio manager and local transaction and asset managers. Bouwfonds Asset Management now trades as Bouwfonds Real Estate Investment Management. Catella Real Estate AG Kapitalanlagegesellschaft is a steadily growing regulated company that currently has 20 employees. Outlook The Fund’s management expects both the direct return and the total return to rise due to a clear decline in vacancies in Markt Schwaben. In addition, the use of attractively priced financing should support the positive leverage of total return by providing positive leverage. Further acquisitions abroad are designed to underline our international orientation by diversifying our risk. Although the effects of the financial crisis may endanger these aims, we will do everything in our power to avoid any problems that emerge with the necessary flexibility. 11
Page 1: Bouwfonds European Residential Open
Page 5 and 6: Table of Contents 05 Key Figures at
Page 7: In terms of product strategy, the F
Page 11 and 12: Fund Management Report Overview of
Page 13 and 14: Valuation Information on changes in
Page 15: Development of Returns (Multi-year
Page 18 and 19: Development of the Fund 20 Realized
Page 20 and 21: Statement of Assets and Liabilities
Page 22 and 23: Notes to the Statement of Assets an
Page 24 and 25: Schedule of Properties 1 I. Directl
Page 26 and 27: Overview - Market Values and Rents
Page 28 and 29: Schedule of Real Estate Purchases a
Page 30 and 31: Statement of Income and Expenditure
Page 32 and 33: Calculation of the Distribution Ord
Page 34 and 35: Tax Information Income tax treatmen
Page 36 and 37: Tax Information €0.37 per unit wi
Page 38 and 39: Tax Information agreement). However
Page 40 and 41: Taxation of interim profits Interim
Page 42 and 43: Committees Investment Company Catel
Page 44: Catella Real Estate AG Kapitalanlag

Bouwfonds European Residential - Catella Real Estate AG

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?