BREAKTHROUGH IN THE CITY Why London's ... - Union Investment

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Photos: DIFA(6) PLACES & SPACES 34_35 Entering the Far East's emerging markets: For DIFA Immo-Invest, DIFA bought the Seoul Mobile Telecom Building, located in the office sub-market Mok-Dong in Seoul, South Korea. ABSCHNITT DIFA moves into the Far East � The unbridled economic development in the Far East has spurred investor demand for high-quality office property in Asian cities on to new heights. Among the emerging markets attracting both domestic and foreign funds operators is South Korea’s capital, Seoul. According to CB Richard Ellis, Seoul recorded large-scale office property transac- tions worth around $933 million in the first half of 2006 alone. Now, DIFA has completed its market entry in the Far East with an investment of around 50.9 million euros in the Korean capital. After almost two years of preparation, DIFA acquired the Seoul Mobile Telecom Building for its institutional open-ended fund, DIFA Immo-Invest. Following recent investments in Turkey, Canada, and Mexico, DIFA plans to strategically expand its international real estate portfolio in the Asia-Pacific region through further acquisitions. “The investment is proof of our consistent expansion in global growth regions,” said DIFA board member Reinhard Kutscher. “The move into South Korea will act as a gateway for us into other emerging countries on the Asian continent, and therefore into markets with potential for attractive returns.” This first investment in the Far East is the result of an intensive preparation phase during which Asian market structures and opportunities were analysed in cooperation with experienced as- set manager ING Real Estate, together with a local team. Aside from Seoul and Shanghai, DIFA is also preparing for purchases of office and retail properties in Singapore and Tokyo. To that effect, it has opened its third foreign office after New York and Madrid in Singapore. The 17-storey Seoul Mobile Telecom Building enjoys a central location in the established office sub-market Mok-Dong, which has absorbed some of the overflow from the neighbouring office district of Yoido. The building was completed in December 1999, and hous- es some 34,000 square metres of space, which is 93 percent let. The main tenants are the Internet order service Woori Homeshopping and Samsung Life Insurance, one of the biggest life insurance com- panies in South Korea.
PLACES & SPACES 30_31 NEWS IN BRIEF Keeping tabs on Europe’s core markets � Europe remains a worthwhile investment region for DIFA. In order to avoid the price spiral for well-let office developments, the company is championing investment in current project developments in core European markets by prestigious partners such as Hines, Eiffage, ECE and Tishman Speyer. With its open-ended real estate fund DIFA- GRUND in mind, DIFA has invested a total of 58 million euros in L’Unico – its first office development in Luxembourg. L’Unico, which is scheduled for completion by late 2007, was sold by Belgian developer Construction & Investment Partner (CIP). The complex will contain around 1,350 square metres of retail space, restaurants and bars, together with another 7,500 square metres of office space. DIFA has agreed an 18- month rent guarantee with the seller. DIFA has also successfully let two former project developments in Spain and France. The 14-storey office high-rise Torre Diagonal Mar in Barcelona with 22,500 square metres of useable floor space has been fully let since June of this year to tenants such as Sanofi-Aventis, Citigroup and SAP. In Paris, the France Avenue office property, which has 14,000 square metres of space and is situated in the new and expanding business area of Rive Gauche, has also been let in its entirety since mid-July. The Accor hotel group was brought on board as the sole tenant in this award-winning office development designed by celebrity architect Norman Foster. The L’Unico office development in Luxemburg (top). DIFA invests in Turkish shopping centre project � DIFA, the property arm of Union Invest- ment, has bought its third foreign retail property – a shopping centre in southern Turkey. DIFA has invested in the Forum Mersin mall for its open-ended real estate fund DIFA-Glo- bal. As its name suggests, the centre is located in Mersin, Turkey’s third-largest port. Con- struction work began in May this year and completion is scheduled for 2007. “Mersin is a city whose economy is growing fast,” said DIFA board member Frank Billand. “It har- bours perfect investment opportunities as the retail market is currently shifting away from traditional individual shopkeepers to the mod- ern retail sector.” The shopping centre enjoys a strategically favourable location on the coast, near a motorway, and at the heart of a housing estate with high purchasing power. The area is home to some 1.8 million people. Boasting some 65,000 square metres of retail space, the mall will also attract holiday- makers in summer with money to spend. DIFA has teamed up with a powerful partner for this project: Multi Turkmall. The company is re- garded as one of the main players on the Turk- ish commercial property market, and its track record includes a portfolio of shopping and leisure facilities in Izmir, Ankara, Mersin, Tra- bzon, Istanbul, Denizili and Antalya. Last year, foreign investors spent a total of $1.83 bil- lion on real estate in Turkey – 37 percent more than in 2004. Successful leasing agreements have been arranged for two of DIFA's former project developments: the Torre Diagonal Mar in Barcelona, (left), and France Avenue (right), located in the Rive Gauche business development zone in Paris.
Page 1 and 2: No. 02/2006 BREAKTHROUGH IN THE CIT
Page 3 and 4: PLACES & SPACES 2_3 COMMENTARY Demo
Page 5 and 6: Cities in Flux Demographic changes
Page 7 and 8: Breakthrough in the City London’s
Page 9 and 10: PLACES & SPACES 8_9 MARKET & INDUST
Page 12 and 13: The hallmark of the Bishopsgate Tow
Page 14 and 15: PLACES & SPACES 14_15 ABSCHNITT Teq
Page 16 and 17: PLACES & SPACES 16_17 MARKET & INDU
Page 18 and 19: Quality of life: The Aker Brygge (t
Page 20 and 21: PLACES & SPACES 20_21 PEOPLE & WORK
Page 22 and 23: PLACES & SPACES 22_23 ABSCHNITT The
Page 24 and 25: PLACES & SPACES 24_25 SPACE & INVES
Page 32: DIFA Forum in cooperation with Urba

BREAKTHROUGH IN THE CITY Why London's ... - Union Investment

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