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Market in MinutesGermany investment markets Q3 2015

Savills World Research Germany Investment

The facts at a glanceInvestment market boom continues in the third quarter - new annual record possible

■The rally in the German commercial investment market continued in the third quarter of the year. More than €56bn was invested in commercial property and residential portfolios during the first three quarters.

■ The transaction volume for commercial property totalled €37.9bn to the end of September, representing an increase of 46% compared with the same period last year. Residential portfolios accounted for investment totalling almost €18.4bn during the same period (+81% compared with Q3 14).

■ The fact that the low interest rate policy is now likely to be maintained for longer than expected, combined with the turbulence in the financial markets and the continued good health of the German economy, means that increasing numbers of investors are interested in investing in German commercial property. Office and retail property remain a primary focus for purchasers, accounting for inflows of €15.3bn and €15.1bn respectively.

■ In the residential portfolio market, the majority of transaction activity is shifting towards company acquisitions. In contrast, the number of large asset deals is declining.

■ The sustained low interest rate environment, volatility in the equity and bond markets and geopolitical flashpoints are likely to drive further capital into the safe haven of German real estate. Consequently, the residential market will and the commercial market could end the year with a new record transaction volume.

Q3 2015


Market in Minutes | Germany Investment Markets

Commercial investment market Germany+++ Transaction volume +46% | Retail investment volume increases by 123% +++

6.53

5.66

5.38

6.40

7.03

5.24

3.96

5.22

11.1

2

7.00

6.65

5.90

12.0

0

10.4

9

7.40

8.15

15.0

1

9.03

15.0

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0

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2010 Q4

2011 Q2

2011 Q4

2012 Q2

2012 Q4

2013 Q2

2013 Q4

2014 Q2

2014 Q4

2015 Q2

2015*

€bn

€bn

transaction volume, quarterly (left axis)transaction volume, past 12 months rolling (right axis)

GRAPH 1

Transaction volume

TABLE 1

Key investment market figures

0%

10%

20%

30%

40%

50%Office

Retail

Industrial / Logistics

Hotel

Development land

Other

past 12 months past 5 years

GRAPH 2

Transaction volume by sector

Source: SavillsSource: Savills / * forecast

Source: Savills / * prime yields = average of Top 7 markets

• The transaction volume for German commercial property totalled almost €52.9bn during the 12 months to September 2015, representing an increase of 12% compared with the 12-month volume to June 2015.

• Compared with the corresponding period last year, retail property has particularly increased in popularity with investors during the year to date. More than €15.1bn has been invested in the sector thus far, representing an increase of 123% year on year. However, office property was the number one sector in terms of transaction volume, accounting for investments totalling more than €15.3bn.

• In view of the sustained high demand and the fact that there is a large amount of product on the market, particularly in the retail sector, the transaction volume is likely to significantly exceed the €50bn mark by the end of the year and may even surpass the record of €55bn from 2007.

German commercial investment market in minutesDemand and prices rise further

Transaction volume (€m)

Share of domestic investors

Office prime net initial yield

High street prime net initial yield

Q3 2015y-o-y change

12 months rolling

q-o-q change

12 months rolling

q-o-q change

Q32015

q-o-q change

Q32015

q-o-q change

Berlin 4,685 + 97% 6,644 + 8% 53% + 16% 4.0% - 10bps 3.6% - 10bps

Düsseldorf 1,944 + 38% 2,395 + 81% 29% - 10% 4.1% +/- 0bps 3.8% +/- 0bps

Frankfurt 4,121 + 86% 6,523 + 4% 57% - 4% 4.1% +/- 0bps 3.5% +/- 0bps

Hamburg 3,351 + 75% 4,755 + 19% 45% + 35% 4.1% +/- 0bps 3.7% - 30bps

Cologne 1,120 + 84% 1,907 + 16% 32% - 2% 4.4% +/- 0bps 4.1% +/- 0bps

Munich 3,837 + 33% 5,262 + 6% 41% - 8% 3.8% +/- 0bps 3.5% +/- 0bps

Stuttgart 938 + 23% 1,080 + 10% 51% + 5% 4.3% - 20bps 4.0% - 20bps

Germany* 37,883 + 46% 52,894 + 12% 46% + 13% 4.1% -5bps 3.7% -9bps

Q3 2015



Commercial investment market Germany+++ Special funds largest net investors | Prime yields decreased further +++

GRAPH 3

Transaction volume by locationGRAPH 4

Transaction volume by type of investor

Source: SavillsSource: Savills / * share of other locations 47% (past 12 months) and 48% (past 5 years) resp.

Property / Portfolio Type of use Location(s) Volume Buyer Vendor

Retail Shop Portfolio Retail across Germany approx. €700m Deka D&R Invest

The Q. Retail Berlin approx. €335m Tishman Speyer Banif / Ponte Gadea

Burstah Ensemble Retail Hamburg undisclosed Commerz Real AG Quantum Immobilien AG

Berliner Tor Center Office Hamburg undisclosed ZurichMorgan Stanley Real

Estate

Bilker Arkaden Retail Düsseldorf undisclosed HinesIvanhoe Cambridge

Europe

0%

10%

20%

30%

40%

50%

60%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 5

Transaction volume by origin of buyer

0%

1%

2%

3%

4%

5%

6%

2015 Q3

201420132012201120102009200820072006

Office Prime High Street

GRAPH 6

Prime yields

Source: SavillsSource: Savills

0%

2%

4%

6%

8%

10%

12%

14%Berlin

Düsseldorf

Frankfurt

HamburgCologne

Munich

Stuttgart


-12 -9 -6 -3 0 3 6 9 12

Developer Corporate

Other asset manager Closed-ended fund

Bank Private-equity fund

Other Public administration

Leasing company Housing association

Open-ended public fund Sovereign wealth fund

Private investor / Family office Insurance company / Pension fund

Listed property company Open-ended special fund

€bn

Purchases, past 12 months Sales, past 12 monthsNet investments, Ø past 5 years Net investments, past 12 months

TABLE 2

The largest transactions in Q3 2015 at a glance*

Source: Savills / * only published transactions are shown

Q3 2015



Commercial investment market Berlin+++ Transaction volume 12M +8% | Prime office yield with 10 bps decrease +++

0.39

0.51

0.73

0.50

0.62

1.18

0.64

0.53

0.62

3.33

0.64

0.80

0.82

1.32

0.62

0.59

1.17

1.96

1.30

1.72

1.66

0.0

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2.0

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4.0

5.0

6.0

7.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 7

Transaction volume

0%

10%

20%

30%

40%

50%

60%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 9


0%

10%

20%

30%

40%

50%Office

Retail


Hotel

Development land

Other


GRAPH 8


Source: Savills

-2 -1 0 1 2

Closed-ended fund Bank

Private-equity fund Developer

Private investor / Family office Public administration

Listed property company Housing association

Sovereign wealth fund Leasing company

Open-ended public fund Corporate

Other Other asset manager

Insurance company / Pension fund Open-ended special fund

€bn


GRAPH 10


Source: Savills

Source: Savills

Source: Savills

• More than €6.7bn was invested in commercial property in the German capital during the 12 months to September 2015. This represents an increase of almost 9% on the 12-month volume to the end of the second quarter.

• The heterogeneity of Berlin creates a diversity of product and locations, making the city highly appealing to investors with a range of strategies. German purchasers dominated transaction activity throughout the first three quarters, accounting for some 55% of the transaction volume (Q3 14: 42%).

• Office and retail property were a primary focus for investors during the first three quarters, each accounting for more than 41% of the transaction volume. Development sites accounted for the third highest volume.

Berlin market in minutesBerlin consolidates position as the real estate capital

Q3 2015



Commercial investment market Düsseldorf+++ Transaction volume 12M +81% | Prime office yield remained unchanged at 4.1% +++

0.26

0.59

0.09

0.19

0.35

0.47 0.05

0.04

0.19

0.29

0.65

0.35

0.17

0.85

0.52

0.70

0.19

0.45

0.14

0.54

1.26

0.0

0.5

1.0

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2.0

2.5

3.0

3.5

0.0

0.2

0.4

0.6

0.8

1.0

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1.4

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 11

Transaction volume

0%

10%

20%

30%

40%

50%

60%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 13


0%

10%

20%

30%

40%

50%

60%

70%Office

Retail


Hotel

Development land

Other


GRAPH 12


Source: Savills

-0.6 -0.4 -0.2 0.0 0.2 0.4 0.6

Corporate Developer

Closed-ended fund Open-ended public fund

Public administration Other asset manager


Sovereign wealth fund Other

Insurance company / Pension fund Bank

Private-equity fund Listed property company

Private investor / Family office Open-ended special fund

€bn


GRAPH 14


Source: Savills

Source: Savills

Source: Savills

• The 12-month transaction volume to the end of September in Düsseldorf totalled almost €2.4bn, representing an increase of 81% compared with the corresponding figure to the end of Q2 15.

• The three largest transactions to date were all completed during the third quarter. These were namely the acquisition of the Bilker Arcaden by Hines, the purchase of the Sevens mall and the acquisition of the Bonneshof Office Center B.O.C. and Tersteegen Office Center T.O.C.

• In view of the current stage of the market cycle, many owners are reviewing their portfolios for potential disposals. On the purchaser side, submarkets such as Düsseldorf North and, to some extent, the Seestern district are increasingly gaining in popularity. While yields in Düsseldorf’s B locations hardened accordingly during Q3, prime yields remained stable compared with the previous quarter.

Düsseldorf market in minutesStrong increase in activity in B locations

Q3 2015



Commercial investment market Frankfurt+++ Transaction volume 12M +4% | Prime office yield mooved sideways at 4.1% +++

0.44

0.73

0.32

0.93

0.53

0.81

0.69 0.

09

0.46

1.61

0.86

0.93

0.56

1.05

0.71

0.36

1.14

2.40

0.96

1.78

1.38

0.0

1.0

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4.0

5.0

6.0

7.0

0.0

0.5

1.0

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2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 15

Transaction volume

0%

10%

20%

30%

40%

50%

60%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 17


0%

20%

40%

60%

80%Office

Retail


Hotel

Development land

Other


GRAPH 16


Source: Savills

-2 -1 0 1 2

Developer Bank

Other asset manager Closed-ended fund

Open-ended public fund Private-equity fund

Corporate Public administration Housing association


Other Insurance company / Pension fund

Private investor / Family office Listed property company Open-ended special fund

€bn


GRAPH 18


Source: Savills

Source: Savills

Source: Savills

• More than €6.5bn was invested in commercial property in Frankfurt during the 12 months to the end of September 2015. This represents an increase of 4% on the corresponding figure to the end of the second quarter.

• The office sector remained the key driver of Frankfurt’s commercial investment market, accounting for around three quarters of activity. However, there has also been a renewed influx of investment in retail property this year, whereas there was virtually no investment activity in the sector during the corresponding period last year.

• In view of the sustained high levels of activity, particularly on the demand side, Frankfurt’s commercial investment market is expected to continue its upward trajectory. The high level of confidence in the Frankfurt market is also likely to be reflected in further mild yield compression.

Frankfurt market in minutesDemand is rising even more strongly than supply

Q3 2015



Commercial investment market Hamburg+++ Transaction volume 12M +19% | High street prime yield decreased by 30bps +++

0.28

0.93

0.63

0.73

0.54

0.46

0.51

0.19

0.40

0.76

0.49

0.58

0.48

1.32

0.53

0.75

0.63

1.40

0.90

1.05

1.40

0.0

0.5

1.0

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2.0

2.5

3.0

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4.5

5.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 19

Transaction volume

0%

10%

20%

30%

40%

50%

60%

70%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 21


0%

20%

40%

60%

80%Office

Retail


Hotel

Development land

Other


GRAPH 20


Source: Savills

-1.0 -0.5 0.0 0.5 1.0

Developer Corporate

Other asset manager Open-ended public fund

Listed property company Sovereign wealth fund


Other Bank

Open-ended special fund Public administration

Private investor / Family office Closed-ended fund Private-equity fund

Insurance company / Pension fund

€bn


GRAPH 22


Source: Savills

Source: Savills

Source: Savills

• The 12-month transaction volume to the end of September 2015 in Hamburg reached just over €4.8bn, representing a 19% increase on the corresponding figure from three months earlier.

• Owing to a lack of core product, investment activity in Hamburg is increasingly shifting to the core-plus segment, which is particularly benefiting the B locations. In addition to the high demand for core-plus property, high-value assets in particular are driving the transaction volume to new highs. The three largest transactions of the year to date have been the sale of the Burstah Ensemble, the disposal of the Berliner Tor Center and the acquisition of section C of Axel Springer Haus by the City of Hamburg.

• The rally in Hamburg’s commercial investment market is expected to continue through to the end of the year with continued pressure on prices for core and core-plus property in particular.

Hamburg market in minutesB locations are benefiting from high demand for core-plus property

Q3 2015



Commercial investment market Cologne+++ Transaction volume 12M +16% | Prime office yield remained unchanged at 4.4% +++

0.08

0.18

0.13

0.20

0.29

0.12

0.15 0.

03

0.26

0.17

0.25

0.09 0.

03

0.43

0.30

0.12

0.19

0.79

0.09

0.58

0.45

0.0

0.5

1.0

1.5

2.0

2.5

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

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0.9

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 23

Transaction volume

0%

10%

20%

30%

40%

50%

60%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 25


0%

10%

20%

30%

40%

50%

60%

70%Office

Retail


Hotel

Development land

Other


GRAPH 24


Source: Savills

-0.6 -0.4 -0.2 0.0 0.2 0.4 0.6

Insurance company / Pension fund Corporate

Open-ended special fund Developer

Open-ended public fund Bank

Private-equity fund Leasing company

Sovereign wealth fund Housing association

Public administration Other

Closed-ended fund Private investor / Family office

Other asset manager Listed property company

€bn


GRAPH 26


Source: Savills

Source: Savills

Source: Savills

• Almost €1.9bn was invested in commercial property in Cologne during the 12 months to the end of September 2015, representing an increase of 16% compared with the corresponding figure to the end of the second quarter.

• Transaction activity during the first three quarters of 2015 was particularly characterised by smaller transactions. The average transaction size across all properties sold was more than €18m, which is significantly higher than the corresponding figure from last year (approx. €12m). By far the largest transactions were the sale of the Barthonia Forum and the disposal of the Kaufhof building on Hohen Straße as part of the department store portfolio sold by HBC. All other transactions were of a volume below €50m.

• Domestic investors were the most active purchaser group during the first three quarters, accounting for 42% of the transaction volume. These were followed by British investors with a share of 16%. American investors ranked third, accounting for almost 12% of the transaction volume.

Cologne market in minutesMarket activity is still dominated by small transactions

Q3 2015



Commercial investment market Munich+++ Transaction volume 12M +6% | Prime office yield mooved sideways at 3.8% +++

0.09

0.29

0.22

0.45

0.63

0.86

0.34

0.68

0.55

1.14

0.74

0.57

0.88

2.26

1.10

0.60

1.20

1.42

0.88

1.44

1.52

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 27

Transaction volume

0%

10%

20%

30%

40%

50%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 29


0%10%20%30%40%50%60%70%80%

Office

Retail


Hotel

Development land

Other


GRAPH 28


Source: Savills

-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5

Developer Other

Other asset manager Closed-ended fund Private-equity fund

Corporate Insurance company / Pension fund

Public administration Housing association

Leasing company Bank

Private investor / Family office Listed property company

Sovereign wealth fund Open-ended public fund

Open-ended special fund

€bn


GRAPH 30


Source: Savills

Source: Savills

Source: Savills

• Around €5.3bn was invested in commercial property in Munich during the 12 months to the end of September 2015. This represents an increase of around 7% compared with the corresponding figure for the 12 months to the end of the previous quarter.

• With very few owners of city-centre property prepared to sell in view of the lack of attractive alternative investments, many investors are increasingly shifting their attention to Munich’s peripheral locations. Examples of this include the disposals of the 88north and Sapporobogen in Moosach as well as the sale of the Riem Tower in the Riem district.

• In view of the sustained high demand, particularly for value-add investments, the growth trend in Munich’s commercial investment market is likely to continue. Investment activity could increase further in B and C locations in particular.

Munich market in minutesInvestors are increasingly shifting their focus to peripheral locations

Q3 2015



Commercial investment market Stuttgart+++ Transaction volume 12M +10% | Prime office yield decreased by 20bps +++

0.15 0.

02 0.04

0.03

0.15

0.14

0.16

0.05

0.46

0.21

0.17

0.08

0.32

0.19

0.13

0.43

0.20

0.14

0.21

0.42

0.30

0.0

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0.4

0.6

0.8

1.0

1.2

0.0

0.1

0.2

0.3

0.4

0.5

0.6

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2011 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€bn

€bn


GRAPH 31

Transaction volume

0%

10%

20%

30%

40%

50%

60%

70%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 33


0%

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50%Office

Retail


Hotel

Development land

Other


GRAPH 32


Source: Savills

-0.4 -0.3 -0.2 -0.1 0.0 0.1 0.2 0.3 0.4

Closed-ended fund Developer

Bank Corporate

Private-equity fund Private investor / Family office

Other Other asset manager Public administration


Housing association Insurance company / Pension fund

Listed property company Open-ended special fund Open-ended public fund

€bn


GRAPH 34


Source: Savills

Source: Savills

Source: Savills

• Almost €1.1bn was invested in commercial property in Stuttgart during the 12 months to the end of September 2015. This represents an increase of 11% on the corresponding figure from the second quarter of 2015.

• Stuttgart remains attractive from an investor’s perspective owing to its low price levels compared with other top seven markets as well as the large number of established office locations outside of the city centre. Besides risk-averse German investors, who are increasingly discovering Stuttgart as an investment alternative to Munich, there is also increasing activity from opportunistic and often foreign investors.

• The increased demand has already noticeably manifested itself in price growth, with yields in Stuttgart increasingly moving in the direction of those in the other top seven cities. In view of the strong interest from investors, Stuttgart’s commercial investment market is expected to record an exceptionally high transaction volume for the full year.

Stuttgart market in minutesGood fundamental data is increasingly attracting new players

Q3 2015



Commercial portfolio investment market Germany+++ Transaction volume 12M +7% | Share of retail portfolios at 55% +++

1.00

1.82

1.17

2.02

1.21

1.33

0.84

0.95

4.44

2.31

1.10

0.73

3.39

5.43

1.90

1.93

5.32

2.78

6.25

3.14

0

3

6

9

12

15

18

21

0

1

2

3

4

5

6

7

2010 Q4

2011 Q2

2011 Q4

2012 Q2

2012 Q4

2013 Q2

2013 Q4

2014 Q2

2014 Q4

2015 Q2

2015*

€bn

€bn


GRAPH 35

Transaction volume

0%

10%

20%

30%

40%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 37


0%

10%

20%

30%

40%

50%Office

Retail

Industrial / LogisticsHotel

Other


GRAPH 36


Source: Savills

-6 -4 -2 0 2 4 6

Corporate Open-ended public fund

Closed-ended fund Developer

Bank Other asset manager

Other Housing association

Leasing company Public administration

Private investor / Family office Sovereign wealth fund

Insurance company / Pension fund Private-equity fund

Open-ended special fund Listed property company

€bn


GRAPH 38


Source: Savills

Source: Savills / * forecast

Source: Savills

• The transaction volume for German commercial property portfolios totalled €17.5bn during the 12 months to the end of September. This represents an increase of more than 7% on the corresponding figure to the end of the second quarter.

• The high pressure to invest and the fact that many investors are searching for the largest possible investments is driving increasing amounts of capital into the portfolio segment. On the supply side too, however, many owners are using the market conditions to revise their holdings and are increasingly bringing portfolios to the market.

• Office portfolios accounted for 23% of the portfolio transaction volume during the first three quarters compared with 36% during the corresponding period last year. Retail portfolios trended in the opposite direction, claiming a 55% share of the transaction volume (Q3 14: 23%). With a number of commercial portfolios still on the market, the transaction volume could reach a total of around €18bn by the end of the year.

German commercial portfolio market in minutesStrong demand for retail portfolios

Q3 2015



Residential portfolio investment market Germany+++ Transaction volume 12M -4% | Price per unit increased to €69,700 +++

0.77

0.63 0.

97

1.99

1.43

3.69

2.95

1.55

3.28

1.48

4.41

3.05

5.79

5.51

2.25

2.34

3.45

10.0

9

6.77

1.41

0

3

6

9

12

15

18

21

24

27

30

33

0

1

2

3

4

5

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8

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11

2010 Q4

2011 Q2

2011 Q4

2012 Q2

2012 Q4

2013 Q2

2013 Q4

2014 Q2

2014 Q4

2015 Q2

2015*

€bn

€bn


GRAPH 39

Transaction volume

Berlin16%

Dresden14%

Hamburg5%

Mönchen-gladbach

5%

Hanover2%

Other60%

GRAPH 41

Transacted units by location*

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3

Num

ber

of U

nits

100 < 800 units 800 < 2,000 units< 5,000 units < 10,000 units10,000+ units Units per transaction

GRAPH 40

Size of portfolios transacted

Source: Savills

0%

10%

20%

30%

40%A

B

CD

Other


GRAPH 42

Transacted units by type of city*

Source: Savills / * based on the Bulwiengesa classification

Source: Savills / * forecast

Source: Savills / * past 12 months

• The transaction volume for German residential portfolios totalled approx. €21.8bn over the last 12 months. This represents a decrease of 4% on the corresponding figure to the end of the second quarter of 2015.

• Events in the residential portfolio market this year have been dominated by mergers between major property companies while the number of asset deals has significantly declined. The acquisitions of Gagfah by Vonovia (formerly Deutsche Annington) and Westgrund by Adler Real Estate alone accounted for almost €9bn or 49% of the transaction volume.

• The continued huge demand for German residential property is not only reflected in a further increase in the transaction volume but also in price growth. The average price per unit paid during the first three quarters of 2015 stood at approx. €69,700, representing an increase of 29% compared with the corresponding period last year (approx. €54,300).

German residential portfolio market in minutesTransaction volume rises 81% year on year

Q3 2015



Residential portfolio investment market Germany+++ Share of domestic buyers at 88% | Listed companies were largest net investors +++

0%

20%

40%

60%

80%

100%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 43


-15 -12 -9 -6 -3 0 3 6 9 12 15

Insurance company / Pension fund Developer Corporate

Private-equity fund Private investor / Family office

Other asset manager Public administration

Open-ended public fund Bank

Leasing company Other

Sovereign wealth fund Closed-ended fund

Housing association Open-ended special fund Listed property company

€bn


GRAPH 45


0%

20%

40%

60%

80%

100%Germany

remaining Europe

North America

Asia/Pacific

Middle East

Other


GRAPH 44

Transaction volume by origin of seller

Source: Savills

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2010 Q3

2011 Q1

2011 Q3

2012 Q1

2012 Q3

2013 Q1

2013 Q3

2014 Q1

2014 Q3

2015 Q1

2015 Q3

€p

er s

q m

Average price per unit, past 12 months rolling

GRAPH 46

Development of prices

Source: Savills

Source: Savills

Source: Savills

Portfolio Number of units Volume Buyer Vendor

- approx. 640 approx. €91m Aik DG ANLAGE Gesellschaft

- approx. 155 undisclosed Aberdeen Asset Management HOCHTIEF Solutions /

Interboden

- approx. 198 undisclosed Vivawest Wohnen Arsatec

- approx. 168 undisclosed bbg Berliner Baugenossenschaft KW-Development

- undisclosed undisclosedKauri CAB Management /

Apeiron Capital Ltd.

unknown Institutional Investor /

unknown Private Investor

TABLE 3

The largest residential portfolio transactions in Q3 2015 at a glance*

Source: Savills / * only published transactions are shown

Market in Minutes | Germany Investment Markets Q3 2015


Savills is present in Germany with around 200 employees with seven offices in the most important estate sites Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart. Today Savills provides expertise and market transparency to its clients in the following areas of activity:

Our services » Purchase and sale of single

assets and portfolios » Corporate Finance - Valuation » Leasing of office and retail

buildings » Leasing and sale of industrial

and warehouse properties » Occupier Services

Savills Germany

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www.savills.de

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Savills is a leading global real estate service provider listed on the London Stock Exchange. The company, established in 1855, has a rich heritage with unrivalled growth. It is a company that leads rather than follows and now has over 600 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East with more than 30,000 employees worldwide. Savills is present in Germany with around 200 employees with seven offices in the most important estate sites Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart.

This bulletin is for general informative purposes only. Whilst every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The bulletin is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research. © Savills October 2015

Savills GermanyPlease contact us for further information

Marcus LemliInvestment Europe+49 (0) 69 273 000 [email protected]

Sascha HanekopfInvestment Hamburg+49 (0) 40 309 977 [email protected]

Andreas WendeInvestment Germany+49 (0) 40 309 977 [email protected]

Dr. Frank UrferInvestment Munich+49 (0) 89 427 292 [email protected]

Steffen PulvermacherInvestment Berlin+49 (0) 30 726 165 [email protected]

Dr. Frank UrferInvestment Stuttgart+49 (0) 711 22 254 [email protected]

Stefan MelliesInvestment Düsseldorf+49 (0) 211 22 962 [email protected]

Karsten NemecekCorp. Finance - Valuation+49 (0) 30 726 165 [email protected]

Jürgen SchmidInvestment Frankfurt+49 (0) 69 273 000 [email protected]

Matthias PinkResearch Germany+49 (0) 30 726 165 [email protected]

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