THE PROJECT (MAINLY OWNED BY PRELIOS AND ING REAL ESTATE DEVELOPMENT)HAS BEEN PURCHASED BY A FUND OF HESSE NEWMAN CAPITAL AG
THE MANAGEMENT AND SERVICES MANDATE CONFIRMED TO PRELIOS FOR 10 YEARS
The Prelios Group has sold the urban development initiativeentitled “Blankenese Bahnhofsplatz” in Hamburg, Germany, owned by Prelios (47%), INGReal Estate Development (50%) and other shareholders (3%).
The 95% of the important complex, designed and developed by Prelios and totally completed in2010 has been bought by the German company Hesse Newman Capital AG on behalf of itsclosed-end investment fund Classic Value 2. The operation entails a valuation of the assets ofapproximately 73 million euro, 68 million on closing and the remaining 5 million within 30months, on the effective completion of the renting process (current vacancy is equal to 7% ofthe total rents).
At this price, which expresses a multiple of over 16.3 the value of the total rents (equal toapproximately 4.5 million euro/year) generates a total gross gain equal to approximately 5million euro on the book value (2% higher of the market value), approximately 2.5 millionbeing Prelios's pro-rata, and a total cash generation for Prelios equal to approx 6 millioneuro.
Prelios, which retains around 5% stock, also keeps the service mandate for propertymanagement for a further 10 years, in line with its positioning as a “pure asset managementcompany”, which entails the gradual reduction of the invested capital offset by an increase inassets managed on behalf of third parties. For these services, Prelios will receive a fee of 4.5%calculated on the basis of the total rents. Prelios will be also in charge of the agency services(letting) for additional fee.
Located in West Hamburg, in one of the most prestigious parts of the city, “BlankeneseBahnhofsplatz” is a mixed-use urban area of more than 22 thousand square metres (GLA),characterised by an ample and stable tenant base of high standing, with contracts which, onaverage, will expire in 2023, and housing Prelios's German headquarters. It includes homes,offices and quality commercial spaces, shops and restaurants, as well as parking spaces and isparticularly appreciated, in addition to its central location, for the high standards used in thedesign and construction.
The real estate brokerage and consulting services for the sale were provided exclusively by Prelios Agency.
THE MANAGEMENT AND SERVICES MANDATE CONFIRMED TO PRELIOS FOR 10 YEARS
The Prelios Group has sold the urban development initiativeentitled “Blankenese Bahnhofsplatz” in Hamburg, Germany, owned by Prelios (47%), INGReal Estate Development (50%) and other shareholders (3%).
The 95% of the important complex, designed and developed by Prelios and totally completed in2010 has been bought by the German company Hesse Newman Capital AG on behalf of itsclosed-end investment fund Classic Value 2. The operation entails a valuation of the assets ofapproximately 73 million euro, 68 million on closing and the remaining 5 million within 30months, on the effective completion of the renting process (current vacancy is equal to 7% ofthe total rents).
At this price, which expresses a multiple of over 16.3 the value of the total rents (equal toapproximately 4.5 million euro/year) generates a total gross gain equal to approximately 5million euro on the book value (2% higher of the market value), approximately 2.5 millionbeing Prelios's pro-rata, and a total cash generation for Prelios equal to approx 6 millioneuro.
Prelios, which retains around 5% stock, also keeps the service mandate for propertymanagement for a further 10 years, in line with its positioning as a “pure asset managementcompany”, which entails the gradual reduction of the invested capital offset by an increase inassets managed on behalf of third parties. For these services, Prelios will receive a fee of 4.5%calculated on the basis of the total rents. Prelios will be also in charge of the agency services(letting) for additional fee.
Located in West Hamburg, in one of the most prestigious parts of the city, “BlankeneseBahnhofsplatz” is a mixed-use urban area of more than 22 thousand square metres (GLA),characterised by an ample and stable tenant base of high standing, with contracts which, onaverage, will expire in 2023, and housing Prelios's German headquarters. It includes homes,offices and quality commercial spaces, shops and restaurants, as well as parking spaces and isparticularly appreciated, in addition to its central location, for the high standards used in thedesign and construction.
The real estate brokerage and consulting services for the sale were provided exclusively by Prelios Agency.