ANNUAL REPORT 2006 - DG Hyp

Growth of foreign markets
The foreign real estate markets in which DG HYP has
representative offices once again enjoyed positive growth
in 2006. London in particular continues to be at the European
forefront with high rental figures, double-digit rent
increases and significant reductions in vacancy levels.
In the US, growth on the real estate markets was very
pleasing in 2006 – defying many forecasts. As a result of
increasing employment figures, demand for office space is
increasing again. Vacancy rates are falling and prices are
increasing, especially where levels of new construction are
failing to meet demand.
Continuation of expansion for commercial real
estate finance
For commercial real estate finance, DG HYP leverages
its market and product expertise for both direct business
with real estate investors on its core German market as
well as in its cooperation with cooperative banks via syndicated
loans for primary banks’ commercial customers.
DG HYP was able to use this as its foundation for its
strategic expansion over the past few years in commercial
real estate finance: this has continued in 2006. New business
and loan extensions reached € 2,378 million during
2006, which equates to a 7.9 per cent year-on-year
increase (2005: € 2,204 million). DG HYP has thus
succeeded in successfully positioning itself on the market
with its decentralised structure of six Real Estate Centres in
Germany’s main financial cities.
International business also enjoyed pleasing growth.
The proportion of foreign finance to new business
increased perceptibly, from 6.3 per cent last year to
19.1 per cent in 2006. DG HYP has representative offices
in London and New York: these locations form the focus of
DG HYP’s involvement in international real estate finance.
22 Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
Management Report