DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

More documents

Recommendations

Info

Exhibit 18 Existing shopping centres space in square meters per 1,000 inhabitants Source: DEGI Research Given the uptake in retail sales, area productivities will stabilize after years of persistent decline and despite the fact that total sales areas are expanding. This trend is having a positive effect on the commercial properties market, as area productivity is relevant for the sustainability of rents. However, looking at the longer term; by 2010 a further 6 million square retail space will have been created. Exhibit 19 Provision and potential for retail-surface per 1,000 inhabitant per county Niedersachsen Rheinland-Pf. Baden-Wb. Saarland Nordrhein-W. Bayern Hessen Schleswig-H. Thüringen Hamburg Berlin Mecklenb-Vorp Sachsen Sachsen-Anhalt Bremen Brandenburg 25.0 75.0 125.0 175.0 225.0 275.0 325.0 total 2010 2006 Source: EHI, <strong>Real</strong>institut, Wegweiser Demographischer Wandel (WDW) This again will on the long term result in a decline in productivity per unit area as retail turnover is developing in a slower pace than supply. For Eastern Germany much is dependent on the continuation of the “Aufbauprogramm Ost” program, the economic development program for Eastern Germany. German retail update - 28/11/2007 22
Exhibit 20 Indexed space development and productivity per unit area Source: Federal Statistical Office Large scale centres in Germany are becoming increasingly important for the retail landscape, just like factory outlet, leisure and entertainment centres, station and airport shopping centres and city centre shopping malls. Exhibit 21 Development of shopping centres (>10,000m2 rentable area) in Germany Source: EHI Retail Institute However, foreign investors are not interested in the entire spectrum of properties, but only in properties already traded on the investment market, mainly shopping centres and other retail warehouse formats. Precisely in this segment Germany still appears undersupplied. The reason why international investors are highly interested in German retail is threefold: • undersupply of shopping centres and retail parks • average yield levels and -gap for German retail • ongoing sustainable economic growth expected. Most favourite locations are cities that have more than 70,000 inhabitants; between 2001 and 2006 2/3rd of the newly developed centres were built in such large conglomerates. Smaller cities up to 20,000 residents and eastern German cities are regarded as unpopular. German retail update - 28/11/2007 23
Page 1 and 2: www.petercam.com Real Estate Novemb
Page 3 and 4: Executive Summary “The secret of
Page 5 and 6: Introduction Following the record r
Page 7 and 8: The ZEW Indicator of Economic Senti
Page 9 and 10: 2 Destatis 3 Federal Statistical Of
Page 11 and 12: Consumer Price Index Consumer price
Page 13 and 14: Exhibit 11 Division median net inco
Page 15 and 16: Exhibit 14 Population, purchase pow
Page 17 and 18: Exhibit 16 Life cycles of the vario
Page 19 and 20: Corporate tax rate to 15.8% In the
Page 21: (30%) 4 . The preference for hyperm
Page 25 and 26: Exhibit 23 Shopping centre pipeline
Page 27 and 28: y approximately 25 basis points by
Page 29 and 30: spread of DIY over shopping centres
Page 31 and 32: Rental levels Not only prime assets
Page 33 and 34: Exhibit 30 Retail yields and rents
Page 35 and 36: acquisition of new shopping centres
Page 37 and 38: Dawnay Day Treveria • Bloomberg t
Page 39 and 40: Exhibit 34 Portfolio overview BBI I
Page 41: Petercam Institutional Research and

DIRECT MARKET REPORT GERMAN RETAIL - Europe Real Estate

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?