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18. Januar 2012 
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Berlin a promising growth market for 2012
CA Immo anticipates increased competition for tenants and investors in the Central European locations in 2012 and subsequent years. The commercial property sector will be decisively influenced more than ever by the factors of banking system stability and economic development in the individual markets and their ability to weather crises.
b>Germany: Berlin and Frankfurt compete for top position
Comparatively low levels of income and rents, a broad mix of industries and a growing service sector are what make Berlin particularly attractive as a business location. Dr. Bruno Ettenauer, Chair of the CA Immo Management Board says: “In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.” Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector.
Eastern Europe: more difficult financing climate
Most of the Eastern European markets are exhibiting more stable economic performance with greater growth and at the same time have far lower debt than the majority of the countries of Western Europe. In spite of this, the expected framework conditions for property investors in the region are not exactly rosy for 2012. Ettenauer: “Banks without an interest in their domestic markets will put pressure on financing, especially in Eastern Europe. But Poland, in particular, has a stable banking system and should therefore remain highly solvent in 2012 as well.”
High-quality properties will continue to be in demand in the metropolitan centres of Eastern Europe since little production of new areas is to be expected. In summary: (re-)financing of high-quality properties will become more expensive but will be available. Reduced lending by the banks and the rise in price of loan capital might become a limiting factor for the property investment market in 2012. Ettenauer: “Companies like ourselves, who will not be requiring large volumes of financing over the next two years, are well prepared for any credit crunch."
Targets for 2012
More than 80% of the total investment volume for 2012, a sum of € 300 m, will go into current building projects in Germany. Frankfurt and Berlin, in particular, will be the focus of investment activity. Bernhard H. Hansen, Development Executive at CA Immo had this to say: “With the completion of the Skyline Plaza retail centre planned for 2013, we will have largely finalised the development of Frankfurt’s Europaviertel quarter. In Berlin, with more than one million sqm property reserves, we still have enormous potential for urban district developments and we will be implementing these optimally step by step and putting them on the market in the years ahead.”
Planned sales in 2012 amount to about € 300-400 m (corresponding to between 7 and 10% of total income-producing property assets). Wolfhard Fromwald, Finance Executive at CA Immo: “The funds released by sales are intended to be used for the targeted repayment of loans and other financial liabilities and for ensuring dividend payments. In this way we will be sustainably improving both our maturity profile and our equity ratio.”
b>Germany: Berlin and Frankfurt compete for top position
Comparatively low levels of income and rents, a broad mix of industries and a growing service sector are what make Berlin particularly attractive as a business location. Dr. Bruno Ettenauer, Chair of the CA Immo Management Board says: “In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.” Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector.
Eastern Europe: more difficult financing climate
Most of the Eastern European markets are exhibiting more stable economic performance with greater growth and at the same time have far lower debt than the majority of the countries of Western Europe. In spite of this, the expected framework conditions for property investors in the region are not exactly rosy for 2012. Ettenauer: “Banks without an interest in their domestic markets will put pressure on financing, especially in Eastern Europe. But Poland, in particular, has a stable banking system and should therefore remain highly solvent in 2012 as well.”
High-quality properties will continue to be in demand in the metropolitan centres of Eastern Europe since little production of new areas is to be expected. In summary: (re-)financing of high-quality properties will become more expensive but will be available. Reduced lending by the banks and the rise in price of loan capital might become a limiting factor for the property investment market in 2012. Ettenauer: “Companies like ourselves, who will not be requiring large volumes of financing over the next two years, are well prepared for any credit crunch."
Targets for 2012
More than 80% of the total investment volume for 2012, a sum of € 300 m, will go into current building projects in Germany. Frankfurt and Berlin, in particular, will be the focus of investment activity. Bernhard H. Hansen, Development Executive at CA Immo had this to say: “With the completion of the Skyline Plaza retail centre planned for 2013, we will have largely finalised the development of Frankfurt’s Europaviertel quarter. In Berlin, with more than one million sqm property reserves, we still have enormous potential for urban district developments and we will be implementing these optimally step by step and putting them on the market in the years ahead.”
Planned sales in 2012 amount to about € 300-400 m (corresponding to between 7 and 10% of total income-producing property assets). Wolfhard Fromwald, Finance Executive at CA Immo: “The funds released by sales are intended to be used for the targeted repayment of loans and other financial liabilities and for ensuring dividend payments. In this way we will be sustainably improving both our maturity profile and our equity ratio.”
