annual financial statement 2011 - conwert Immobilien Invest SE

INTRO |
| CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL STATEMENTS
MANAGEMENT REPORT
Operating environment
In contrast to the massive increase in purchase prices for freehold flats, prices for rented
apartments remained stable in 2011 despite high investments in furnishings and refurbishing,
which were above all carried out by institutional rental companies. In inner-city locations, rental
prices for objects with very good facilities ranged between 10 and 13 €/sqm, in less favourable
locations outside the Gürtel road between 7 and 9 €/sqm.
(ÖVI, December 2011 and Verband Österreichischer Immobilientreuhänder, 16 December 2011)
VIENNA APARTMENT BUILDING MARKET
The demand for the classic apartment building from the late 19th century continued unabated in
2011. According to the entries in the land register, a total of roughly 800 million € was invested in
purchasing apartment buildings from this period in Vienna. In the whole year 2011 the number of
transactions rose by 53.8% to 1.230 million € in comparison with the prior-year reference period.
More than half of this volume was invested in the districts inside the Gürtel road, with the central
business district of Vienna remaining the undisputed leader in terms of price per square meter.
(Otto Immobilien, Dr. Eugen Otto)
COMMERCIAL & OFFICE PROPERTIES
The Austrian retail market remained relatively stable in 2011, roughly 230 €/sqm/month in top
inner-city locations. The prime yield declined slightly in comparison with the previous year and
amounted to 4.4% at the end of the year. Demand by international suppliers continued to focus on
the “golden U” (the area comprising Kärntner Straße, Kohlmarkt and Graben) in Vienna.
Shopping centres and retail parks also recorded a largely stable development in 2011. The average
prime rent of shopping centres in Austria amounted to approx. 100 €/sqm/month, that of retail
parks to approx. 12.00 €/sqm/month. While demand for good locations continued, prices in less
favourable locations were under higher pressure and the landlords were faced with high vacancy
rates in some parts.
(CBRE Austria, 15 November 2011)
Investors, above all open-end funds and insurance companies from Austria, placed their focus
also on office properties in 2011. New office space of approx. 188.00 sqm (incl. refurbishments)
was produced, up 14% on the year 2010 (approx. 165,000 sqm). These spaces were primarily rented
by local companies that had relocated. Relocations of international companies were the exception
rather than the rule. The vacancy rate rose to 6.1% at the end of the year 2011 and is expected to
continue to increase in 2012 (2012 estimate: 6.5%). With the exception of increasing rents in the
first district, which amounted to approx. 23.75 €/sqm/month (+3.3% in comparison with 2010), the
average rent remained stable overall, with prices between 9.00 and 16.00 € depending on location
and quality of the object.
(CBRE Vienna Offices Market View 2011, EHL, fondsprofessionell 11 January 2012)
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