22.01.2010

German real estate companies reduce their portfolios

In 2009, the figure for completed sales was twice as high as that for purchases. Overall, far fewer and smaller transactions were conducted last year.

In the last year, the major German real estate companies traded properties worth EUR 1.77 billion, according to transaction statistics provided by REITs in Deutschland. More than two thirds of the transactions recorded were sales, which, at EUR 1.6 billion, accounted for over 90 per cent of total volume.
Most purchases and sales were transacted in the third quarter, following a very quiet first half of the year in terms of transaction activity.
In 2009, as already in 2008, transaction volume fell by more than half compared with the previous year (from EUR 3.8 to 1.6 billion).
This emerges from a comparison of the activities of 15 companies, for which data from 2007 to 2009 are available. While in 2007 only a quarter of all transactions were sales, they accounted for half in 2008 and rose to 68.1 per cent of all recorded purchases and sales in 2009.
The largest individual transaction recorded in 2009, worth EUR 300 million, was the sale of the completed “Machiacini” project development in Milan from the IVG Immobilien AG portfolio. The Bonn-based group also ranks No. 1 with regard to the total volume of transactions, at just over EUR 1 billion. Fair Value REIT AG was the only one of the companies investigated not to feature as either purchaser or vendor in 2009. Of the transactions recorded in 2009, 38.3 per cent were attributable to residential property, 17 per cent to office space and 6.38 per cent to retail space. The remaining percentages are attributable to land, mixed-use properties and to transactions where no details were provided of the type of property involved.
Data from 19 listed real estate companies were included in the 2009 transaction figures. The recorded figures are based on publicly accessible information, which was verified by questioning the respective companies. Only transactions where details of the price were provided were taken into account for the figures on transaction volume.

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