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Tiger on the prowl for more German assets
Developer to spend €500m in next nine months
By
Jonathan Brasse
Tiger
Developments is poised to splash out €500m (£340m) on German
real within the next nine months. Tiger's European
investment director, Mark Broderick, has committed to the
spending spree after the company doubled the number of
German properties on its books with the completion of four
purchases for a combined total of more than €120m.
The O'Flynn
Construction-owned property company's mainland European
exposure has centred on Germany . However, with the German
property market now attracting institutional investors, the
early entrants – the entrepreneurial privately owned
companies – are starting to move out.
Tiger is
bucking the trend.
Broderick
said the properties in Bremen , Oldenburg , Cologne and
Berlin provided significant asset management potential and
growth in value.
‘These
acquisitions demonstrate our continued confidence in all
sectors of the German market,' he said. ‘We are aiming to
spend a further €500m in Germany in the next six to nine
months, although I recognise that finding and securing the
right properties is becoming increasingly difficult.'
The largest
of Tiger's purchases is a 742,000 sq ft industrial complex
that it for €53m
(£36m) –
reflecting a 6.3% yield.
The first
phase is let to logistics firm Schenker on a 15-year lease.
The second and third phases are to be developed over the
next 12 months.
In
Oldenburg , it has bought a 150,000 sq ft mixed-use scheme
in northern Germany for €24m (£16m), reflecting a yield of
6.1%. It purchased as office and research facility near
cologne, let to Visteon, for €35m (£23m), reflecting a yield
of 8%.
All of the
properties were sold by private investors. The purchases
double the number of properties Tiger owns in Germany . The
company has appointed Thomas Navratil from McCafferty Asset
Management to work with the company's Germany boss, Ulrich
Grobe.
In addition
to the new purchases, Tiger also owns Volkswagen's 87,000 sq
ft headquarters building in Wolfsburg , a 110,000 sq ft
retail and office property in Mönchengladbach, an 88,000 sq
ft retail property in Hanover Garben and a 132,500 sq ft
retail property in Paderburn. |
