ANNUAL REPORT 2006 - DG Hyp

Management Report
Commercial buildings
Despite the increase in prices, there is continued high
demand from international investors for commercial properties
in Germany and Europe. This trend is mostly driven
by the fact that attractive returns can still be generated as
a result of the current favourable financing conditions. US
investors clearly dominate the market, accounting for
66 per cent of the volume of transactions. Buyers from the
United Kingdom (12 per cent) and Germany (6 per cent)
accounted for a far lower proportion of the total investments.
REAL ESTATE LENDING PORTFOLIO,
BY TYPE OF PROPERTY (31 DEC 2006)
Offices and
administrative
buildings
Healthcare
Trading/
retail
properties
and storage
Hotels
Commercial
housing
Agricultural
projects
Other
commercial
properties
Manufacturing industry
Residential
properties
Manufacturing industry
in %
0.9
Residential properties 63.3
Commercial housing 10.7
Hotels 1.3
Trading/retail properties and storage 9.3
Healthcare 1.2
Offices and administrative buildings 8.8
Agricultural projects 1.7
Other commercial properties 2.8
TOTAL 100.0
In this regard, investors are increasingly focusing on
smaller and medium-sized towns with good connections to
the big cities, which enjoy comparatively modest rents and
purchase price multiples. Demand is focusing on individual
properties in 1a locations as well as shopping centres, specialist
retail store centres, business parks and supermarket
portfolios.
Commercial housing
In view of demographic growth, the centres of
Germany’s big cities in particular are increasingly attractive
for commercial housing. Investor interest is focused less on
the new construction of apartment blocks, but rather on
existing housing properties. Here, there is demand from
foreign investors in particular for portfolios, with larger
deals having become more scarce and the number of small
transactions increasing. Modernisation activities are being
driven further by the commercial housing sector. Profit
opportunities can be found, particularly in top quality
stocks of housing suitable for retired persons.
Logistics properties
The European logistics property market has gained significantly
in importance over the past few years. The volume
of transactions increased, from € 3.8 billion in 2000
to more than € 10 billion in 2006 – up 160 per cent in six
years. Germany benefits from its location at the heart of
Europe. In the first three quarters of 2006, € 1.7 billion
was invested in German logistics properties, almost the
same amount as in the whole of 2005. Hamburg holds the
top rank for sales of logistics space, with significantly in
excess of 400,000 m 2 . This is followed by Frankfurt (around
300,000 m 2 ), Munich (approx. 250,000 m 2 ) and Dusseldorf
(around 260,000 m 2 ).
Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
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