IF_MIPIM2016_WEB

Austria
The magazine for
sustainable real estate
HUNT FOR RECORDS
Attracted to calculated risks
ACQUIRE, ACQUIRE, ACQUIRE
There‘s no holding back
for investors
VIENNA CENTRAL STATION
Transformed into a
place of the future

Seilergasse 14 | 1010 Vienna | Austria | +43 (0)1 513 01 52 | office@arnold-investments.com | www.arnold-investments.com
The positive side of
inflation: It shows the
difference between
money and value.
Investments for Investors. Invest in real value.
High-quality properties combine attractive potential returns with
maximum security of capital – provided you have a partner with
an excellent portfolio, lot of experience and the local knowledge
you need.
Arnold Investments – your real estate broker for professional
investments, particularly in apartment buildings in Austria,
the Czech Republic, Slovakia and Hungary.
your real estate broker
for professional property investments

Housing the world
T
he theme of „Housing the World“ puts
the topics residential building and
urban policies at the centre of attention.
And no wonder: Large amounts of
capital - some would argue too much - are looking
to be invested for decent returns. In the absence
of core products in the office sector, the search for
alternatives has begun: The industry has discovered
the residential unit as an asset class. But there are
many questions in need of answers: How can
councils and the housing industry deal with the
mounting pressures of increasing urbanisation
and rural exodus? How will the European countries
- we are intentionally not saying the European
Union - manage to supply all the migrants with
affordable housing?
The question of whether freeholds will become
parts of investor’s portfolios in the future will
be the subject of the panel debate “Residential
asset class: how and where to invest?”. Delegates
will also participate in discussions at the
event “Tomorrow’s buildings: high clean, smart,
mixed?”, where houses of the future will be the
topic. This will include architectural concerns,
innovation, mixed usage vs. pure residential use
and the influence of climate change. In other
words - sustainability has reached the housing
market.
n
We are curious about it all.
We hope you are, too.
There have of course been investments into
residential objects in the past, but currently the
economic, political and social significance of the
residential sector is growing. This is due to the
movement and concentration of the populace,
social changes, environmental developments
and the need for sustainable urban development.
It is for these reasons that the focus of investors is
now trained on this sector.
Philipp Kaufmann
Editor
The topic of freehold units will be examined
from three perspectives at the coming MIPIM:
The panel “How to build a live-able future whilst
maintaining growth targets?” will examine urban
development from the point of views ‘private
vs. public sector”, population density, infrastructure
as well as responsibility and politics.
Michael Neubauer
Editor in chief
MIPIM 2016 | ImmoFokus Austria
03

Content
3 EDITORIAL
21 EDITED BY
006 TU FELIX AUSTRIA?
Business Hub Austria
014 RECORD LEVELS
Acquire, acquire, acquire
024 QUALITIY RATHER THAN QUANTITY
Reductions in new locations
46
The hunt for the records
INTERVIEW WITH FRANZ PAUL BAUER &
WOLFDIETER JARISCH
030 THE ASIANS ARE COMING
The Austrian hotel investment market is
ever-changing
034 A DUSTY LANDSCAPE
The logistics centre Wien-Nord
038 CONSTRUCTION IS LAGGING BEHIND
Excessive demand.
046 THE HUNT FOR RECORDS
Interview with Franz Paul Bauer &
Wolfdieter Jarisch
058 A QUARTER OF NEW FUTURE
New urban and modern
066 URBAN LIVING ENVIROMENT
Main station Vienna
070 BAHNHOFCITY –A SUCCESS STORY
Interview with Andreas Matthä
086 AUSTRIA´S LARGEST HALL OF RESIDENCE
Student living
088 THE FIRST ON CAMPUS
Erste Campus
092 A QUARTER WITHIN A QUARTER
Quarter Belvedere Central
098 OPEN QUARTER WITH MANY FRONT FACES
Areas of the main station
074 TOWARDS TO THE SUN
Sonnwendviertel
102 ÖBB & VIENNA´S PROPERTIES
Transformation of the urban landscape
078 A NEW WORLD OF WORK
ÖBB Headquarter
106 UP IN THE SKY
Flying high – SKYTOWER
082 SHOPPING BENEATH THE TRACKS
Refine and enhance
130 WORDRAP
Amongst real estate managers
04 ImmoFokus Austria | MIPIM 2016

Vienna Central Station
58
A QUARTER OF A NEW FUTURE
A dusty landscape
THE LOGISTICS CENTRE WIEN-NORD
34
70 BahnhofCity
INTERVIEW WITH
ANDREAS MATTHÄ

Economy Austria
Tu felix Austria?
Business hub Austria
06 ImmoFokus Austria | MIPIM 2016

y Harry Weber
U
pon hearing economic news from the North
American or Asian markets, many a European
entrepreneur might partake in astonished envy.
On closer inspection, the rapidly changing conditions
of these markets and the instability of the Asian markets
in particular take away some of the initial shine. In light
of these facts, investors gladly return to the locational advantages
of the European markets, many of which are shared by Austria
- a strong pull for international companies.
At the centre of Europe
The last years and their crises have illustrated that Europe
may not be on a sky-rocket trajectory when viewed from a
global perspective. High tax burdens and ancillary costs,
crushing legal and regulatory market conditions caused
by high living and social standards leave little room for
economic growth. Still, an honest and thorough analysis of
locational factors comes to a positive conclusion and shows
potential.
The Deloitte.Radar 2016, an annual survey about the appeal
of Austria as an economic location (conducted by Deloitte
Austria and now in its third year), does conclude a decline
in Austria’s competitiveness for 2015, but puts this down
to a deterioration of the overall macroeconomic situation.
Source: Fotolia
An index of seven locational factors rated by Deloitte yields a
figure of 2,86 out of a possible 5 points for 2015, compared to
3,00 the previous year.

Economy Austria
The political and macroeconomic climate is
being dominated by one of the smallest growth
rates in Europe, declining investment as well
as substantial government debt and the increasing
rate of unemployment is leading to a
deterioration on the job market. The situation
has got worse and recovery is still not in sight.
Corporate infrastructure and environments received
good ratings. The generally high standard
of Austria’s infrastructure contributes to
the status of a sophisticated business location.
Austria must
not miss the
boat when
it comes to
technological
advances
and the
necessary infrastructure
to support
these, some catching-up on the leading locations
is required.
The rules and regulation are being perceived
as the biggest investment impediment. They
also carry the biggest entrepreneurial risk.
Compared to the rest of Europe, Austria is
characterised by persistent bureaucratic burdens,
countless individual rules and a lack of
flexibility. There are no signs of improvements
in this respect.
2015 International Tax Competitiveness Index Ranking
The locational factor which received the worst
rating was cost. On an international level, Austria’s
fiscal policy performs poorly with regard
to both the high tax burden and the effectiveness
of steering tools. The recent tax reform
was a first step towards easing the burden on
labour costs, albeit on revenue-based reciprocal
financing.
More pleasing news can be reported for the area
innovation, research and technology. Austria
counts towards the outstanding locations for
research and
innovation in
Europe. During
the last
year, innovation
efficiency
was continually
improved.
A reduction
of bureaucratic
hurdles and the promotion of a stronger
private-equity culture would be essential for a
dynamic start-up scene.
A long lasting duality exists between rising
unemployment among older and less qualified
workers and a shortage of qualified workers
and specialists. To ensure a steady supply of
workers, Austria needs to tap into further employment
potential and raise the standards of
education.
1 (1) Estonia 100,0 1 1 9 1 2 17
2 (2) New Zealand 91,8 2 21 6 3 1 16
3 (3) Switzerland 84,9 3 5 32 4 9
4 (4) Sweden 83,2 4 6 11 6 21 5
5 (7) Netherlands 82,0 5 16 12 23 6 1
16 (12) Austria 69,5 16 19 23 8 30 6
(2014)
„Austria needs to tap
into further employment
potential and raise the
standards of education.“
Source: The Tax Foundation’s International Tax Competitiveness Index (ITCI) measures the degree to which the
34 OECD countries’ tax systems promote competitiveness through low tax burdens on business investment and
neutrality through a well-structured tax code.
RECORD NUMBER OF
CORPORATE SETTLEMENTS
IN 2015
Corporate settler ABA-Invest in Austria reports
the arrival of 297 new international
companies in Austria, a rise of 8 percent
compared to the previous year’s figure.
“That’s an excellent reference for Austria
as a place of business. With an increase
of 8 percent we have further pushed the
record of new settlements”, says Minister
for Economics Reinhold Mitterlehner in
his capacity of ABA owner representative.
“The trust of international investors
is a positive sign and will serve as an
incentive for further reform. We have
to strive for a constant development in
accordance with global standards in order
to be fit for the future”, Mitterlehner continues.
Investment volumes have risen
even more, by 34 percent to 496 million
Euro. 2.613 jobs were created (following
2.645 in the year before).
“Many companies that come to Austria
value our function as a hub for central,
south eastern and eastern Europe.
Factors such as qualified workers, our
stability and legal security serve as longterm
incentives and give us an advantage
in difficult geopolitical times”, Mitterlehner
continues. “The tax reform will boost
spending power and consumption in
Austria. We are also gradually lowering
incidental wage costs by as much as 1
billion Euro a year and pressing ahead
with the reduction of bureaucracy.”
The most significant investing country at
103 settlements is Germany, generating
an increase of 17 percent. “Happily, this
included some major investments, which
brings the German investment volume
to a total of 343,4 million Euro, a 25
percent increase compared to last year’s
274,5 million”, explains ABA managing
director René Siegl. Italy ranks - yet
again - in second place, with a total 42
companies settling in Austria with the
help of ABA. The level of interest from
CEE and SEE countries remains high, with
77 companies making up a good quarter
of all ABA settlements.
n
08 ImmoFokus Austria | MIPIM 2016

Economy Austria
Innovation Cities Index 2015: Europe
REGION-RANK GLOBAL-RANK CITY COUNTRY INDEX SCORE
1 1 London United Kingdom 57
2 3 Vienna Austria 56
3 7 Amsterdam Netherlands 55
4 9 Paris France 54
5 12 Munich Germany 54
6 14 Berlin Germany 54
7 15 Copenhagen Denmark 54
8 17 Stockholm Sweden 53
9 19 Tel Aviv Israel 53
10 24 Stuttgart Germany 52
Source: 2thinknow – Global Innovation Agency
19TH ANNUAL GLOBAL CEO
SURVEY OF PWC, WITH AUSTRIAN
DATA FOR THE FIRST TIME
According to the prognosis of the Austrian
Federal Bank (OeNB), the domestic market
can look forward to a slightly better year.
After Gross Domestic Product rose by
0,7 percent in 2015, it is set to achieve 1,9
percent in 2016. The rise in government
spending in connection with the refugee
situation is acting like a stimulus package.
“Federal money is flowing into the economy
and may constitute a 0,3 percent
rise in GDP growth”, explains OeNB-head
economist Doris Ritzberger-Grünwald.
However, due to a growing population,
the GDP-per-head quota will fall.
The high quality of living presents a final locational
advantage, material wealth and standard
of living are above average. With regard
to subjective well-being and potential for the
future, Austria lags behind other comparable
nations, which causes negative perceptions of
the quality of life.
More courage
The collective perception, however, forms the
foundation of Austria’s competitiveness as a
business location. Population, politics, entrepreneurs,
workers and society as a whole need
to be aware of which factors are becoming
significant. The experts of Deloitte are calling
on a bolder approach towards key challenges.
Transparency and lasting reforms of federal
agencies in the presentation of public finances,
elimination of redundant procedures and reduction
of administrative expenditure. Financial
resources should then be reinvested into
education, research and infrastructure.
Audacity of the state and of companies when
it comes to future-oriented investments. Focus
on market expansion, product innovation and
additional infrastructure instead of substitute
investments.
Simplification through de-regulation and reduction
of bureaucracy, creating opportunities
and greater freedom. Consequent concentration
on added-value activities.
More social responsibility by raising the
awareness of the individual and a stronger
sense for societal developments. Appreciation
and expansion of social responsibility
for companies and citizens as well as safeguarding
and sustainably modernising the
Austrian well fare state.
Creating an appetite for risk by easing access
to risk capital and depreciation for high-risk
investments. Simplification of the subsidy
system as an engine for innovation and establishment
of a “culture of failure” within
society.
The modernisation of the work place regarding
flexibility of time, place and compensation,
use of new technology and a solid legal backdrop
are issues in need of addressing. Labour
potential and competences of women, elderly
workers and migrants are to be particularly
encouraged.
Structural revisions and modernisation are
required for a continuing relief on labour costs
and their reciprocal financing, a simplification
of tax legislation by reducing exceptions. Special
attention should be paid to legal security
and investment incentives.
n The Deloitte team is convinced that Austria is
not lacking in ideas for reforms and that a turnaround
relies on every individual’s mettle. An introvert
attitude of a country’s population, caused by
unalterable global developments (slow economic
growth, low interest rates, migration and digitalisation),
creates a pessimistic atmosphere, insecurity,
a perceived standstill and hinders positive
economic development.
The expenditure for asylum seekers will
also positively affect real disposable
income, with a predicted increase by 2,8
percent in 2016. The measures of the
tax reform will also begin to yield results
in 2016, both with additional growth of
0,4 percent and with a boost to private
consumption.
UPWARD TREND FOR PROPERTIES
“Inflation is staying at very low levels,
despite the glut of money poured into
the markets by the ECB. This is surprising,
but not inexplicable”, says Fritz Schellhorn,
head of Agenda Austria. On the one
hand, falling oil prices are keeping down
inflation, most of the money is circulating
within the financial sector and doesn’t hit
the markets with full force. On the other,
there are enormous upward price trends
in the food and property segments.
“This is where the capital is heading.
The property supply is currently rigid, the
demand of “concrete gold” high. Rising
prices are a logical consequence”, Schellhorn
adds. The OeNB is also expecting an
increasing inflation.
The prognosis for the price increases lies
at 0,8 percent for 2015, 1,3 percent and
1,7 percent for 2016 and 2017, respectively.
“There has never been a danger of
deflation in Austria”, concludes the OeNB.
Private consumption will increase regardless
of higher prices.
n
10 ImmoFokus Austria | MIPIM 2016

1.400 managers were asked about the most important questions
of growth and economic trends. For the first time, 32 Austrian
CEOs were among them. A brief look at the results:
• 31 percent of domestic CEOs believe in global growth in 2016.
Only 27 percent of all CEOs expect an improvement,
10 percent fewer than did so the year before
• Two thirds see an increase in potential dangers to Austrian
businesses
• The rising tax burden and overregulation are the main causes of
anxiety for Austrian CEOs. 81 percent are concerned by ever-increasing
taxation, compared to only 41 percent of German CEOs
• Nevertheless, 44 percent of Austrian managing directors believe
in the growth of their own businesses, placing them above
the global average (35 percent) and far ahead of the Germans
(28 percent)
• Technological change is perceived as the biggest entrepreneurial
challenge of the future. 81 percent of Austrian CEOs believe
that new technologies will radically change the expectations
towards businesses within the next 5 years
The survey allows for the pleasant conclusion that Austrian businesses
and their CEOs are aware of upcoming
challenges and have a more optimistic outlook than their foreign
counterparts.

Economy Austria
Austrian Economic Forecast
(Real change in %) 2011 2012 2013 2014 2015 2016 2017
GDP 2,8 0,8 0,3 0,4 0,9 1,5 1,5
Private consumption 1,3 0,6 0,1 0,0 0,4 1,0 1,0
Public consumption 0,0 0,2 0,6 0,8 1,0 0,5 0,6
Gross fixed capital formation 6,7 1,3 -0,3 -0,2 0,3 2,8 3,2
Investments in plant and machinery 10,1 0,7 -0,1 1,3 1,0 3,8 4,7
Investments in construction 2,7 2,2 -2,1 -1,0 0,1 1,8 1,5
Exports 6,0 1,7 0,8 2,1 1,8 3,7 3,7
Imports 6,2 1,1 0,0 1,3 1,6 3,9 3,7
CPI (change in %) 3,3 2,4 2,0 1,7 0,9 1,4 1,9
HCPI (change in % ) 3,6 2,6 2,1 1,5 0,8 1,4 2,0
Employment (change in %)*) 1,8 1,3 0,5 0,6 0,9 1,1 0,9
Unemployment rate (nat. def.) 6,7 7,0 7,6 8,4 9,1 9,5 9,5
Unemployment rate (EU def.) 4,6 4,3 5,4 5,6 5,7 6,0 6,0
General gov. balance (in % of GDP) -2,6 -2,2 -1,3 -2,7 -1,3 -1,7 -1,3
Public sector debt (in % of GDP) 82,1 81,6 80,8 84,2 85,5 84,7 83,2
*) Gross capital investments **) excl. Recipients of maternitiy leave payments, those on miltary sercive and in training
Source: Bank Austria Economics & Market Analysis Austria
12 ImmoFokus Austria | MIPIM 2016

MAKING THE
Accelerating success.
IMPOSSIBLE POSSIBLE
MIPIM
Cannes
lower level – P-1.M51.
TRACK RECORD 2015:
Total retail space sold
and let: 10.290 sm
Contact us: +43 (0)1 535 53 05 -22
E-Mail: retail@colliers.at
Colliers International Immobilienmakler GmbH,
Goldschmiedgasse 10, 1010 Vienna
colliers.com/austria

Investing in Austria
Record levels
Acquire, acquire, acquire. There’s no holding back for investors
by Michael Neubauer
„ Numerous new and
highly solvent investors
are flooding the Austrian
market, ensuring record
prices.“
Franz Pöltl,
managing director of EHL
Investment Consulting
R
egardless whether one looks at the
figures of CBRE (3,75 billion), EHL
(3,45 billion) or BAR Real (3,52 billion),
2015 was a record-breaking year as
far as property investments were concerned. This
applies to the phenomenal final quarter in particular,
when 1,8 billion Euros - almost half of
the annual volume - were turned over. The office
market has, however, stayed below expectations.
The predicted increase did not materialise, with
a rent total of 195.000 sqm in Vienna for 2015.
There was a slight rise in peak rents against
decreasing yields.
Georg Fichtinger, Head of Capital Markets at
CBRE Austria, talks about a “sensational final
quarter”. Office and retail properties continue
to be of primary interest to investors, despite
a gradual decline in yields. “Office properties
in the city centre only offer yields of 4%,
whereas retail properties in the same area
can still achieve a yield of over 4%.” During
most of 2015, the investor distribution stayed
on par with the 2014 figures, but this changed
in the final quarter with a tendency towards
international investors making up 66% of all
investments. This trend is acknowledged by
Franz Pöltl, managing director of EHL Investment
Consulting, “Numerous new and highly
solvent investors are flooding the Austrian
market, ensuring record prices.” Beside the
continued activities of investors from German-speaking
countries, North American
and Asian investors are increasingly showing
interest, mostly via asset managers. These
buyers are exclusively seeking high-volume
acquisitions. “Transactions are tending towards
higher volumes, with 42 percent of all
deals involving an investment in excess of
100 million Euro”, according to Fichtinger,
who forecasts a continuation of this trend for
2016 in Austria and, particularly, Vienna. This
Source: EHL, CBRE, Colliers International, bareal
14 ImmoFokus Austria | MIPIM 2016

„Because of their professionalism and market knowledge,
state and pension funds are an enrichment
for any international property market – despite their
complex and slow-moving structures.“
Georg Muzicant,
Colliers International
stems from the fact that the rise in prices is
still fairly moderate, compared with countries
like Germany, making Austria more attractive
to investors.
High-volume transactions
“High-volume properties were driving sales in
the record-breaking year of 2015. More than
half of the entire volume was achieved in 6
transactions”, explains Michael Zöchling, BAR-
Real managing director. On an international
scale, this is mainly due to North American investment
groups. “Since Morgan Stanley broke
the ice with its acquisition of the Millennium
Tower, transatlantic investors have become
ever more prominent in Austria”, Zöchling
continues. In 2015, Morgan Stanley struck
again, this time with its purchase of Wien Mitte
before a joint venture, formed of the Canadian
Dream Global Reit and an Asian state fund,
scooped up the office building Rivergate. And
there is yet further scope. “Investment rates are
currently going through the roof. For “’The Big
Four” office clusters - Hauptbahnhof, Donau
City, Viertel Zwei and Euro Plaza - a price rise
of up to 20% is predicted for 2016, owing to the
enormous investment pressure generated by
international investors.”
Georg Muzicant of Colliers International
sees this as a very positive signal, “Since this
group includes some of our best clients, we
welcome this development. Because of their
professionalism and market knowledge, state
and pension funds are an enrichment for any
international property market - despite their
complex and slow-moving structures.” Austria’s
reputation as a ‘save haven, with a stable
political landscape’ is the foundation for this
appeal. “We do notice a certain tarnishing of
this reputation, caused by constant changes
to taxation laws and the steady deterioration
of the tax situation, especially for investments
already effected”, adds Muzicant.
„ We expect only 30.000
sqm of new office spaces in
2016 - hardly an invigorating
prospect for the Viennese
market.“
Felix Zekely,
Head of Agency at CBRE.
MIPIM 2016 | ImmoFokus Austria
15

Investing in Austria
Investments
OBEJCT LOCATION ASSET CLASS SIZE SELLER PURCHASER
AMADEUS Portfolio Vienna Residential 13.800 sqm Immofinanz Wr. Städtische
Bahnhof Business Center Graz Office 11.000 sqm Private Owner ImmoKAG
Bruckner Büro Center Linz Office 7.500 sqm WealthCap ImmoKAG
Brünner Straße Vienna Mixed Use 22.324 sqm BAI Erste Fonds
Citygate Vienna Retail 17.800 sqm Stumpf AG Warburg HIH
Courtyard by Marriott Vienna Hotel 251 rooms S Immo DEKA
Cyta Shopping Welt Völs Retail 56.000 sqm Hypo Tirol Rutter Immobilien
Gruppe
Elektro Haas Vienna Retail 13.000 sqm CA Immo Semper Constantia
FMZ Rankweil Rankweil Retail 7.000 sqm Zima Blue Asset
FMZ Alt Erlaa Vienna Retail 19.000 sqm Warburg HIH Invest Semper Constantia
GREEN WORx 1-4 Vienna Office 16.000 sqm S+B Union Investment
Herrengasse 1-3 Vienna Office | Business 5.150 sqm Raiffeisen Private Investor
Infrastrukturobjekt Flughafen
Vienna Office | Retail 15.760 sqm Warburg HIH Invest Private Investor
Logistik
Höchstädtplatz 3 Bad Fischau Retail 24.930 sqm Barcleys WPCarey
Hornbach Bad Fischau Schwechat Logistics 12.000 sqm Lynx Owner-Occupier
Julius Tandler Plaz 3 Vienna Office 69.400 sqm Wölbern 6B47
Kaufpark Vösendorf Vösendorf Retail 12.300 sqm Immovate Invesco
Logistikzentrum Wien Nord Hagenbrunn Logistics | Industry 83.700 sqm Karimpol Group Aberdeen
M4 Wörgl Wörgl Retail 19.200 sqm Bank Austria Real Invest Rutter Immobilien
Gruppe
Mariahilfer Straße 84 Vienna Office | Business 3.800 sqm Immofinanz Private Investor
Nordbahnstraße 50 Vienna Office 15.700 sqm Bank Austria Real Invest Corpus Sireo
Otto-Probst-Straße Vienna Mixed Use 55.556 sqm BAI Erste Fonds
Pier 50 Vienna Office 22.273 sqm KGAL FLE
Rehaklinik Münster Münster Miscellaneous 23.600 sqm Grazer Hospitalsgruppe Immac
Rivergate Vienna Office 53.600 sqm Signa Holding Dream Global
Siebenbrunnengasse 19-21 Vienna Mixed Use 19.716 sqm Conwert SIMMO
space2move Vienna Office 51.600 sqm Raiffeisen Property Union Investment
International
Star Inn Hotel Vienna Hotel 300 rooms Rhombergbau Private Investor
Tec Center Lebring Lebrig, near Graz Logistics | Industry 28.600 sqm Wegraz Palmira Capital Partners
Wiedner Hauptstraße 94 Vienna Office 9.300 sqm Raiffeisen Novomatic
Wien Mitte Vienna Office | Retail 95.000 sqm BAI Morgan Stanley
Wohllebengasse 3-5 Vienna Office | Residential 5.130 sqm Immofinanz Private Investor
Wombats Hostel Naschmarkt Vienna Hotel 460 beds Private Owner Private Investor
Source: EHL, CBRE
Yields are suffering because transactions now
involve such huge sums - Morgan Stanley had
to part with more than 500 million Euros to
purchase “The Mall” at Wien Mitte. Zöchling
expects a fall in yields to under 3% in prime locations
and predicts that they will stay at that
level. “This kind of situation would have been
unimaginable two years ago”, he says. EHL investment
expert Pöltl confirms the mounting
pressure on yield figures: The high demand of
properties in the core category simply cannot
be met by the current supply.
Slacking rental market
The office market, on the other hand, is staying
below expectations. 2015 saw a slight decrease
in Vienna. The rental performance fell from
220.000 sqm in 2014 to a mere 200.000 sqm,
while new construction was significantly
lower at 130.000 sqm, similar to the 2014 figures.
The vacancy rate remained below 6,5%,
a gratifyingly low rate compared to the rest of
Europe.
„We expect 30.000 sqm of new office spaces in
2016 - hardly an invigorating prospect for the
Viennese market.”, says Felix Zekely, Head of
16 ImmoFokus Austria | MIPIM 2016

1020, DENK DREI 1030, ORBI Tower 1100, QBC 1010, Rathausstraße 1020, messecarree 1100, THE ICON VIENNA
Completion: 2017 Completion: 2017 Completion: 2017 Completion: 2018 Completion: 2017/18 Completion: 2018
Situated between the
University of Economics,
Krieau and the Green
Prater, VIERTEL ZWEI
is one of the most
successful development
projects of recent years
and is now being extended.
Within the framework
of „VIERTEL ZWEI Plus“
the object
„DENK DREI“ is under construction,
with 21.000
sqm of office space and
2.000 sqm for retail.
In addition, this green
neighbourhood - which
also boasts a lake - will
house 300 residential
units and 350 student
apartments.
The ORBI Tower, some
100 metres tall, will
close the final construction
gap in TownTown
at Wien-Erdberg. It
consists of 26.000 sqm
of office space on 26
floors and stands out
due to its distinctive
architecture and flexible
design, offering tenants
maximum creative
freedom.
The QBC is under construction
at the Quartier
Belvedere and offers
a mixture of uses in a
group of six buildings
covering 25.000 sqm
metres of land. 80.000
sqm of office and retail
space, 26.000 sqm
for hotel use as well
as 24.000 sqm of
residential spaces will
be created here. The
main goal is to achieve a
vibrant location, mostly
through the varied mix
of uses.
The project
Rathausstraße 1
combines a prestigious,
inner-city location with
modern, energy efficient
spaces and generous
underground parking
facilities - a combination
rarely seen in downtown
Vienna. Until 2018,
12.000 sqm metres of
high-grade office and
retail spaces will be
constructed at the site.
The office location
around Messe-Prater is
in high demand and is
being further up-valued
by the messecarree. The
mixed-use property will
offer a total floor area of
17.000 sqm, 4.600 sqm
of which are reserved for
offices, a further 2.150
sqm for retail and the remaining
10.250 sqm for
freehold residential units.
A garden plaza on the
first floor further boosts
this buildings appeal.
THE ICON VIENNA boasts
85.000 sqm metres of
floor space and is set to
become a landmark of
the station quarter, due
to its striking architectural
design and office towers
rising up some 88 metres.
Located on Wiedner
Gürtel, it takes advantage
of excellent transport
connections to the underground
and suburban train
network and also offers
direct access to the arrivals
www.erstegroup.com
“The most suitable financing structure
combined with the convincing monitoring”
Christoph Stadlhuber, Managing Director SIGNA Holding/CEO SIGNA Prime
Join us at
MIPIM, Cannes,
15.–18.03.2016
R7.E2
Austria Campus
Vienna, Austria
200,000 m 2
Various office complexes
Key part of urban planning
© SIGNA
Financing organized by
Erste Group
MIPIM 2016 | ImmoFokus Austria
17

Rentals Vienna
TENANT SIZE PROPERTY
Ernst & Young 12.000 sqm 1220, IZD Tower
AustroControl 10.000 sqm 1220, IZD Tower
IHS 5.700 sqm 1080, Palais Strozzi
General Dynamic 5.700 sqm 1110, Bleibtreustraße
Global Blue 4.700 sqm 1200, Rivergate
Vaillant 3.800 sqm 1100, Business Park Vienna
Ruby Hotels 3.000 sqm 1010, Laurenzerberg 2
Wirtschaftsagentur 3.000 sqm 1060, Mariahilfer Straße 20
Allianz 2.500 sqm 1140, Workstation Wien West
MSD 1.900 sqm 1220, Ares Tower
Source: EHL, CBRE
Agency at CBRE. He perceives the situation as
critical, since the interest of tenants cannot
be met with such a low level of new construction.
195.000 sqm of office spaces were let in
2015, a decline of 7% compared to the previous
year and the same figure is expected for
2016. Peak rent in the fourth quarter of 2015
reached 25,85 Euro per square metre and was
achieved in the city centre. “Peak rents will
break through the 30-Euro mark in 2016”,
Zöchling feels certain. The lowest rental rates
are currently found in western Vienna and
at Erdberg. The Viennese office market may
come alive again in 2018, when 600.000 sqm
metres of new commercial construction will
become available. “These new properties in
sophisticated locations will boost demand.
However, we don’t expect this to be reflected
in the rental performance until 2017”, Zekely
concludes.
A trend reversal affected demand: After
the interest of predominantly public and
semi-public companies in recent years, private
companies became more involved in the
market in 2015. Management and economic
consultants made up a third of the rental volume,
followed by infrastructure firms with
a little under 25%. Broken down by areas,
28% of the rental performance related to the
Vienna DC, where the IZD Tower achieved
the two largest transactions (Ernst & Young:
„ A poor commercial
location can thrive in
residential use.
As a result, the office
market is being relieved
of unmarketable areas
– a win-win situation
for both sides.“
Alexandra Ehrenberger,
Head of Market Research
at EHL Immobilien
Investment market office Austria
Office CBD top rents and top returns
*Prognosis
Investment market office Austria
Office non CBD average rents and top returns
*Prognosis
30 7%
30 7%
EUR/sqm/month
25
20
15
6%
5%
4%
3%
2%
1%
EUR/sqm/month
14
12
10
8
6,75%
6,50%
6,25%
6%
5,75
10
H1/11 H2/11 H1/12 H2/12 H1/13 H2/13 H1/14 H2/14 H1/15 H2/15 H1/16*
0%
10
H1/11 H2/11 H1/12 H2/12 H1/13 H2/13 H1/14 H2/14 H1/15 H2/15 H1/16*
5,50%
Source: EHL Market Research | Q 2016
18 ImmoFokus Austria | MIPIM 2016

Investing in Austria
Rents in Vienna´s Eight Office Locations
(€/m2 /Month)
CENTRAL DISTRICTS (CBD)
Office Buildings 13.00-25.85
Office Towers 13.25-25.75
rent: EUR 15,0-26,0
rent progress: stable
demand:
advancing
offer:
decreasing
NORTH
DONAU CITY –
LASSALLESTRASSE
(Northeast)
WEST
CENTRAL DISTRICTS
(CBD)
CENTRAL
STATION
ERDBERG-ST.MARX
(East)
WIENERBERG
(South)
NORTH
WEST
WIENERBERG (SOUTH)
CENTRAL STATION
Office Buildings 10.00-13.80
Office Towers 13.00-17.00
Office Buildings 9.50-13.50
Office Towers 13.00-17.00
Office Buildings 10.50-14.85
Office Towers 13.00-18.50
Office Buildings 10.75-15.70
Office Towers 13.50-20.00
rent: EUR 11,0-15,5
rent progress: stable
demand:
stable
offer:
advancing
rent: EUR 10,0-14,5
rent progress: stable
demand:
stable
offer:
decreasing
rent: EUR 11,5-18,0
rent progress: stable
demand:
advancing
offer:
advancing
rent: EUR 15,0-20,0
rent progress: advancing
demand:
advancing
offer:
advancing
ERDBERG (EAST) |
NEU MARX
PRATER
LASSALLESTRAßE
(NORTH EAST)
VIENNA DC |
SURROUNDINGS
Office Buildings 10.75-13.50
Office Towers 13.00-18.00
rent: EUR 11,5-18,5
rent progress: stable
demand:
advancing
offer:
advancing
Office Buildings 12.50-15.30
Office Towers 13.00-21.00
rent: EUR 12,0-17,0
rent progress: advancing
demand:
advancing
offer:
advancing
Office Buildings 11.25-14.20
Office Towers 13.00-23.00
rent: EUR 12,0-17,0
rent progress: advancing
demand:
advancing
offer:
advancing
rent: EUR 15,0-26,0
rent progress: stable
demand: advancing
offer:
decreasing
CBRE
EHL
20 ImmoFokus Austria | MIPIM 2016

Vienna Office Market 2008 - 2016
New space in sqm
Demand in sqm
*Prognosis
300,000 sqm
225,000 sqm
150,000 sqm
75,000 sqm
0
220,000
300,000
190,000
250,000
185,000
220,000
180,000
210,000
180,000
Vacancy rate (%)
2008 2009 2010 2011 2012
2013 2014 2015 2016*
260,000
170,000
270,000
120,000
220,000
130,000
200,000
60,000
230,000
8%
7%
6%
5%
4%
12.000 square metres; Austro Control: 10.000
square metres). The second-strongest player
was Neu-Marx|Erdberg at 21 percent, due to
the first transactions at the ORBI Tower. In
2016, the axis Lassallestraße/Messe/Prater
will receive a boost via pre-letting processes of
the projects Denk Drei and messecarree. The
same goes for the area Hauptbahnhof, where
the commercial exploitation of QBC and Icon
Vienna will begin in 2016.
„The Big Four” – Hauptbahnhof, Donau City,
Viertel Zwei and Euro Plaza – are standing out
from the rest of the market.
As in other major cities, both tenants and investors
show a clear preference for office clusters.“
Michael Zöchling,
BAR managing director
Vacancy rate is dropping
As a consequence of these developments, the
vacancy rate is set to drop to 6,4%, according
to the experts at EHL. This is not only down
to the limited production of new areas, but
also to the high amount of office-space conversions.
Having little to no rental potential
left, they are being adapted for alternative
uses (especially residential applications, like
student accommodation, serviced apartments,
etc). “A poor commercial location
can thrive in residential use. As a result, the
office market is being relieved of unmarketable
areas - a win-win situation for both sides”,
says Alexandra Ehrenberger, an expert on
offices and Head of Market Research at EHL
Immobilien.
“Of the already limited production of new areas
in 2016, around 90% are owner-occupied, which
leaves a meagre 6.000 sqm of new areas for the
rental market. At 3.000 sqm, the segment of
extensive, interrelated first-time occupancy
properties is very limited. Potential tenants
either have to fall back on existing buildings or
wait for the completion of new projects in 2017.”
Edited by:
„Visionen ohne Umsetzung bleiben geträumt“ (© MMag. Philipp Kaufmann)
Media owner Fokus-media House GmbH, 4020 Linz, Breitwiesergutstraße 10, Tel. +43.1.813 03 46-0,
office@fokus-media.at, www.fokus-media.at
Editorial department Raimundgasse 1, A-1020 Wien
Chief executive: MMag. Philipp Kaufmann, Mag. Michael Neubauer, Ronald Goigitzer
Editor in chief: Mag. Michael Neubauer (m.neubauer@fokus-media.at)
Editors: Mag. Andreas Altstädter, Markus Arnold, Mag. Richard Buxbaum, Stefan Goigitzer, Mag. Priska Koiner,
Mag. Andreas Kremla, Mag. Franz Pöltl, Mag. Martin Schaffer, Harry Weber
Editing & Translation: Donna Schiller, Rupert Hebblethwaite
Design&Layout: Caroline Abl
Advertise: Ronald Goigitzer
Coverphoto: Cityfoto
MIPIM 2016 | ImmoFokus Austria
21

Investing in Austria
The prospect for properties redeveloped to
a high standard will continue to offer good
opportunities in 2016: “Redeveloped office
buildings with modern amenities proved to
be market winners in 2015, owing to the low
level of new construction. This will be a continuing
trend in 2016.” One example for this is
the Austrian Academy of Sciences, which will
move into an existing building on Hollandstraße
(procured by EHL) with a floor area
of 8.500 square metres. The closer objects
are to established office cluster like the inner
city, Messe/Prater, TownTown, Wienerberg of
Vienna DC, the better. The pre-letting process
for objects which will be completed in 2017
has started. These include Denk Drei at Viertel
Zwei, messecarree wien, ORBI TOWER, QBC,
THE ICON VIENNA or Square Plus.
Office rental in Vienna
by locations
CBD
Donau City
Erdberg
Central Station
Wienerberg
North
West
Rentals in Vienna 2015:
~ 195,000 sqm
Altogether, 240.000 square metres of new
office spaces will become available in 2017, a
fact that will invigorate the market significantly.
“We are already in negotiations with
several major tenants,”, says Ehrenberger,
“the conclusions of which will increase the
average rental figures, since the rental values
lie somewhere between 15 and 20 Euros per
square metre.” n
Source: CBRE 01/2016
Completions Vienna,
2011 – 2018
completions
preceeding years
available floor space
rent floor space
350
300
298
400
´00 sqm
250
200
150
100
50
0
204
295
145
145
112
3
135
142
80 9 110
105
71
25
2011 2012 2013 2014 2015 2016e 2017e 2018e
Source: BAR 2015
22 ImmoFokus Austria | MIPIM 2016

The globalisation of the European property market
Comment: Franz Pöltl
Managing Partner EHL Investment Consulting GmbH
n From March 15-18, the property industry is meeting in Cannes and
this conference is an increasingly global affair. Interest in the Austrian
property market will not only come from German funds and insurance
companies, but a growing number of investors from the Far East and
North America. What all these „exotic“ players have in common is a
desire to find acquisitions in excess of 100 million Euros, primarily in
the office and retail sectors.
Initially, Asian investors in particular had been testing the waters of
the European (and consequently, Austrian) market with investment
managers acting as their intermediaries. In parallel the scouts of these
investors were busy doing background checks and closely following
the market trends and transactions. It will only be a matter of time
until they step from the shadows and start to directly engage with the
European markets.
This is why almost all European and Austrian participants of the
MIPIM have reserved time in their schedules for meetings with Chinese,
Korean, Australian, but also American and Canadian investment
companies. This „mother of all global property conventions“ offers the
possibility to meet with representatives from all continents. Product
presentations and networking can determine the outcome of the entire
year.
The basic situation gives rise to the assumption that the transaction
volume of the Austrian market will seamlessly continue the trend of
previous years and again exeed the 3 billion Euros threshold in 2016.
However, this prediction is slightly soured by the fact that almost no suitable
properties have completion dates in 2016. Then again, the rising
prices in conjunction with increasing volume will surely tempt some
portfolio holders to exit early, rather than hold their assets long-term.
The transaction volumes have exercised pressure on yields in recent
years and these are currently at a historic low, a phenomenon that
occurs across Europe, not just in Austria. How much lower yields will
fall in the course of the year given the high level of liquidity and the
historic low interest level needs to be seen.
Many an investor who realises that his sought-after core products are no
longer available, will alter his specification profile to include riskier properties
that still out-perform other available capital market investments.
The MIPIM will act as a beacon for many of the above-mentioned
questions and will offer some orientation as to which direction some
developments will take. The Expo Real will then see the realisation of
the trends now being discussed in Cannes. In any case, EHL is perfectly
prepared to conduct meetings with investors on behalf of its clients.
MIPIM 2016 | ImmoFokus Austria
23

Investing in Austria
Quality rather
than quantity
Smaller sites, shopping malls only in prime location of city centres
and an overall reduction in new locations.
by Andreas Altstädter
24 ImmoFokus Austria | MIPIM 2016

V
ienna has moved up in the ranking of cities with
the highest retail rental figures: At 400 Euros
per square metre, Vienna achieved 9th place in
2015, after being 11th in 2014. These prices (and
more) are charged - and paid - in the area of the “Golden
Quarter” (Kohlmarkt/Graben/Tuchlauben/Bognergasse).
These top evaluations are not representative of the wider
market, but they do illustrate a clear trend: The demand
for top locations remains undiminished, even has a tendency
towards increase, whereas less attractive areas are
battling with loss of tenants and sinking square metre
prices. “The demand for new space is predominantly
generated by international retail store chains, who focus
on 25 major cities in Europe and demand top locations
everywhere”, explains EHL retail expert Jörg Bitzer. “This
benefits inner city-locations in Vienna, which consequently
thrive in comparison to the general market.” The
sector “affordable luxury” is particularly potent in the region.
In 2015, 32 companies entered the market, including
BikBok, Ecco, Silk & Cashmere, Zara Home, Falconeri or
Longchamp. This desire to expand is met, however, with
a limited supply, at least in Austria. 2016 will see the
completion of a modest 56.000 sqm retail space, mainly
extensions to existing centres. In 2015, the figure was still
higher at 109.000 sqm, of which a third was accounted
for by extensions and two thirds constituted new construction.
The largest new openings were the Weberzeile in
Ried im Innkreis, the Citygate in Vienna and the Galleria
Danubia in Hainburg.
Looking for: Prime locations!
The prevailing trend of shopping in the cities profits the
traditional shopping streets as well as recently constructed,
refurbished or extended shopping centres. Since there are
currently no significant new centre developments planned
MIPIM 2016 | ImmoFokus Austria
25

Investing in Austria
in Vienna, the bigger and more dominant
centres can expect sustained use and stable to
rising rents.
But the search for spaces shows a new focus:
Smaller sites, shopping malls only in prime
locations, city centres and an overall reduction
in new locations.
While expansion departments were previously
less critical when it came to the quality of a
new location, screenings have become more
rigorous: location, customer frequency and
potential as well as rent and ancillary costs are
now under closer scrutiny. Spaces in in shopping
centre are very much in favour: 376 of
all retailers opt for locations within shopping
centres, compared with 243 companies who
would choose city centre sites - 3 years ago, the
interest was on par. Retail parks are of interest
to only 119 companies, a significant decline
compared to previous years. Stand-alone sites
and shop-in-shop concepts are currently out of
favour.
theless, the variety of the domestic retail
landscape is increasing. Several small sales
lines, e.g. mono-label stores in the sporting
industry (Schöffel), bakeries (Brezelkönig),
cosmetics (Kiko Milano, MAC) and services
(Perfect Nails) are looking for spaces.
Alternative shopping concepts are the winners
on the demand side of things. “With
regard to new lettings in prime areas, we see
an international trend towards established
online shops entering the ‘real’ retail market”,
says Bitzer. “These development will
eventually also reach Austria.” Pop-up stores
also contribute a substantial amount to new
lettings. “The idea of limited availability and
event-based shopping has created short-term
hypes and works well,” Bitzer continues. “Naturally,
pop-up stores present the landlord
with organisational challenges, but they
make up for this by generating additional frequency
and consequent returns. Something
that no-one can afford not to tap into, either
in shopping streets or centres.”
„ The demand for
new space is predominantly
generated by international
retail store chains,
who focus on 25 major
cities in Europe.“
Jörg Bitzer,
Head of Retail, EHL
„The top three branches when it comes
to expansions are
the FOOD, CLOTHING and FOOD-
SERVICE INDUSTRIES.“
„ The building of a new
shopping centre in Austria
will often cause investors to
acquire it straight away.“
Walter Wölfler,
Head of Retail, Austria & CEE at CBRE
Österreich
The top three branches when it comes to
expansions are the food, clothing and foodservice
industries. Over half of all locations
are sought by one of these sectors. Overall, 151
clothing retailers, 49 grocery firms and 45 gastronomical
ventures are looking to expand
this year. Still, expansion remains under the
level of the last decade. On the one hand, stationary
retail is suffering from stagnation due
to online retailers. On the other, the supply of
prime locations is limited, and where they are
available, high rents eat up potential returns.
There is a definite deceleration in the creation
of new sites. Spectacular market entries, the
likes of which were seen in previous years
(Primark, Forever 21, Dressmann, Nespresso-
Cafe, etc.) are not expected this year, never-
Small spaces are in demand
Only a few years ago, the size of a store was
important, but this has been overtaken by the
productivity of the space. Home centres in
excess of 10.000 square metres or shoe shops
with several 1000 sqm metres of floor space are
no longer in demand. In times if rising costs,
retailers are looking for revenue per square
metre. They’d rather have a smaller shop, but
in a better location. Most of the new retail outlets
are therefore “one size smaller”. In addition,
many of the new players are looking for very
small spaces due to the nature of their business,
for example juice bars, pretzel shops, small jewellers
or nail parlours. Statistically, the most
frequently searched-for properties range in size
between 100 and 200 square metres.
„Following the shopping
centre boom between
1995 and 2005, inner
city shopping streets will
make a comeback.“
Hannes Lindner,
Standort + Markt managing director
Source: CBRE, Fotolia
26 ImmoFokus Austria | MIPIM 2016

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Für nähere Informationen bzw. Unterstützung kontaktieren Sie unseren bautechnischen Außendienst:
tel 01/98 130-0 oder www.alukoenigstahl.com

Investing in Austria
The shopping street revival
„City centres are making a comeback“, says
Hannes Lindner, managing director of
Standort+Markt, due to their higher quality
of stay and multiple uses. Shopping centre are
suffering most from competition by online retailers
and due to the extremely high rents, can
often not meet their customer’s high demands.
For these reasons, city centres are becoming
increasingly attractive for retailers.
The retail property market is quite lively at
the moment, not least due to the insolvency
of Zielpunkt and the restructuring of the Bank
Austria branch network.
The vacancy rate is increasing by 0,7% per
annum, which is “a worrying development”,
according to Roman Schwarzenecker of
Standort+Markt. Many large, disused spaces
have found new tenants last year. In comparison,
the vacancy rate in Austrian shopping
centres is currently at 3,4%, the fluctuation
rate is also surprisingly high at 13,4%. “This
means that any given shopping street is entirely
restructured every 7 years,” says Schwarzenecker.
The branch reduction currently being implemented
by Bank Austria and the bankruptcy
of the food retailer Zielpunkt are getting the
retail property market moving this year. Experts
see pedestrian, inner-city areas as the
main profiteers.
The experts at the consulting firm Standort
+ Markt expect the vacant bank branches to
be snapped up fairly quickly by new tenants.
The situation is different with former Zielpunkt
stores, whose usability is a cause for
concern. Bank Austria is planning to reduce
the number of its branches from 200 to 120
until 2018. “These branches are located in
highly frequented shopping locations and
therefore of interest to retailers”, Hannes
Lindner, managing director of Standort +
Markt, explains. Zielpunkt branches in the
periphery could consequently stay vacant for
some time longer. During the dismantling of
the home centre group bauMax last year, almost
no retail spaces became available, since
all sites were either taken over by competitors
or used in alternate ways.
Lindner believes that the ever-increasing
share of online retail will affect shopping
16
15
14
13
12
11
10
INVESTMENT MARKET RETAIL AUSTRIA
• shopping centres – top rents an yields
H1/11 H2/11 H1/12 H2/12 H1/13 H2/13 H1/14 H2/14 H1/15 H2/15 H1/16*
• retail parks – top rents an yields
120,00
100,00
80,00
60,00
40,00
20,00
0,00
H1/11 H2/11 H1/12 H2/12 H1/13 H2/13 H1/14 H2/14 H1/15 H2/15 H1/16*
• demand ddriven by special funds
• yields under pressure in retail
• lack of new centres intensifies demand for stock properties
• effects of online retail on investor´s interest not yet noticeable
• concentrated expansion of independent retailers
centres in particular. Following the shopping
centre boom between 1995 and 2005, inner
city shopping streets will “make a comeback”,
he predicts. As opposed to shopping centres,
city centres offer a “living multifunctional
use”, which makes shopping a fun experience.
Independent retailers in shopping centres are
paying “extremely high rents” and are sure to
reconsider their locational strategies in light of
of the growing online competition. n
7,50%
7,00%
6,50%
6,00%
5,50%
5,00%
6,25%
6,00%
5,75%
5,50%
5,25%
5,00%
4,75%
4,50%
Source: EHL
28 ImmoFokus Austria | MIPIM 2016

High Street Retail in Vienna –
„a look back and look into the future“
Kommentar: Stefan Goigitzer
Head of Retail – Colliers International
n At Colliers, I have been responsible for retail for over 10 years now
and am able to look back on an interesting time. In 2006, the pressure
of retailers to enter the market was extreme, every available property
was snatched up in an instant. Transfer fees would be going through
the roof - or so we thought back then.
2008, the year of the crash. We feared empty shops, no transfer fees
for prime locations and substantial reductions in rental yields. 2009
arrived and none of the things we had been afraid of materialised. In
2010, and after a brief blip during 2009, rents began to climb again
and new concepts began to open all across the city‘s top locations. 2011
marked the starting point for the „Golden Quarter“, which was then
successfully integrated into the market.
The years 2012/2013 were characterised by the decision-making process
regarding the Mariahilfer Straße. The botched handling of this
affair by the politicians did put me in mind of a banana republic rather
than a vibrant metropolis at the centre of Europe. Retail money was
effectively annihilated. For a long time, no one knew how to go on and
revenues dropped by as much as 25%. When taking into account a revenue
figure of about 1 billion Euro, I don‘t need to say what an impact
this had. The positive effects of a pedestrian area, as exemplified by the
Kärtner Straße, were common knowledge - to conduct a neighbourhood
survey on the subject was gross negligence when one considers
that we are talking about the cities longest shopping street.
It‘s 2016. The Mariahilfer Straße has been completed and is being
accepted whole-heartedly (as predicted by experts) and many new
concepts are opening along the street, among them BIK BOK, Guess or
the relaunch of the Generali Centers, which was completed in the fall
of 2015. The street is enjoyable once more and has re-instated itself as
a hotspot for national and international companies, tourist figures are
up - as are sales.
Downtown Vienna is prospering, tourist numbers have reached an all
time high of 14 million per year. Overnight stays in the 4 and 5 star
categories are coming along nicely. Yes, the Russian are staying away
(even if the Russian were really Ukrainians, but what does it matter
now), but have already been replaced by guests from Asia and the
Arabian region. Rents on Kohlmarkt are now at 600 Euro per square
metre.
But what will the immediate future bring in light of the increasing
significance of online shopping? Traditional businesses are discovering
their online potential more and more, are trying to grow there,
which may cause shopping streets to suffer. But look closely and
this is only true in part. The luxury segment is not (and never has
been) affected by online retail at all, since the ‚shopping experience‘
is more important to its customers than simply owning the product
or saving 10% or 15%.
It does, however, affect the medium market segment, and strongly
so. It is unlikely that companies like Primark could carry their aggressive
pricing policy over to online retail. It will be of central importance
to get customers inside a shop. This is realised by inventing
new concepts and refurbishing shopping centres to reflect their roles
as the new town squares of our time. Downtown Vienna relies on
the tourist trade and this will not change. Shopping malls past their
prime and retail parks that simply satisfy the basic needs of life will
face pressure.
The secret to success in Austrian retail is to reinvent oneself again
and again in order to suggest a positive development and companies
like Zara, H&M and Co have mastered this. Concepts and brands will
vanish and will be replaced by new ones, but I cannot see online trade
displacing stationary retail in the long run - because „shopping“ is still
an enjoyable event and not just the satisfaction of a basic need.
MIPIM 2016 | ImmoFokus Austria
29

Hotel market
The Asians are coming
The Austrian hotel investment market is ever-changing. In 2015, hotel properties worth 310 million Euros
were sold in Austria.
by Michael Neubauer
T
he second half of the year saw an
increase in trading - a development
that has consistently appeared during
the last few years - and surpassed
the previous year’s result by 80 million euro.
“This is down to a spectacular portfolio deal
concluded in autumn which involved to major
Viennese hotels”, says Lukas Hochedlinger,
managing director Germany, Austria & CEE at
Christie + Co.
One trend is becoming more pronounced:
Asian investors are seeking European hotels.
2015 became a record year for Asian investments
into the European hotel market. 1,6 billion
Euros worth of Asian capital was invested
in the hospitality sector, which translates as
21% of the entire European market and represents
the highest amount of Asian investment
in any asset class (office: 17%, retail: 9%,
commercial: 5%). High-end hotels in prime
location of established major cities remained
at the centre of investor’s attention, but a
move towards the medium price segment was
evident. On the one hand, this is caused by the
prospect of higher yields and on the other, by
the budding self-confidence regarding operational
capabilities. Also, the governments of
China, South Korea, Taiwan and other Asian
countries have recently relaxed legislation
concerning foreign investments, a fact that
has contributed to the increased interest in
markets away from home. The preferred
method here seems to the acquisition of established
hotel brands, including their property
portfolio.
30 ImmoFokus Austria | MIPIM 2016

In October 2015, the Austrian hotelier family Koller sold the entire K+K
hotel group with a total of 10 hotels in the 4-star and 4-star-superior
categories to the American hotel investment- and management group
Highgate Hotels. The deal included properties in 8 countries (1.200
rooms), among them the Viennese establishments K+K Palais Hotel
(66 rooms) and K+K Hotel Maria Theresia (132 rooms). As in previous
years, the market is busiest within Vienna. Hochedlinger uses the example
of the Wombat Naschmarkt (130 rooms), which was acquired by
a Russian investor. During the second quarter, Immofinanz sold the
Leonardo Hotel Vienna (213 rooms) to the current tenant, while the
InterCity Hotel with 179 rooms was sold to the investment company
Warburg HIH Invest by a private fund. The transaction yielding the
largest volume was concluded towards the end of the year, when an international
chain hotel (over 200 rooms) was bought by a foreign fund.
„Vienna offers returns which
may not be outstanding,
but very stable.“
Martin Schaffer,
MRP Hotels
The market is also lively in the federal provinces. In Carinthia, the
Hotel Bleibergerhof (108 rooms) was sold to the native hotelier Bernd
Hinteregger in May and towards the end of the first half, another transaction
occurred: The Seehotel Klopein (78 rooms) on the edge of the
Klopeiner lake was sold to the resident Marolt hotelier family by Bank
Austria. Two hotels changed hands in the well-known spa town of Baden
in Lower Austria: The Hotel Sacher (38 rooms) and Grand Hotel
Sauerhof (89 rooms), both previously owned by Novomatic, were sold
to the Asian investment company K.Y.A.T.T. The latter is to be refurbished
and will re-open as a 5-star health resort in August 2017. The
second half of the year also saw the private acquisition of the Cohotel
in Linz.
„Several large chain hotel are
currently up for sale.“
Lukas Hochedlinger,
Managing Director Germany,
Austria & CEE at Christie + Co.
Hochedlinger expects the current boom on the hotel market to last into
2016, “Several large chain hotel are currently up for sale. If investor’s
behaviour and supply continue their current development, 2016 could
Selected hotel transactions, Austria 2015
HOTEL SITE NO, OF ROOMS SELLER PURCHASER
Sources: Chriistie, mrp-hotels, UBM
4-star hotel Vienna >150 private confidential
Star Inn Wien Hauptbahnhof Vienna 300 Rhomberg Bau private
Leonardo Hotel Vienna Vienna 213 Immofinanz confidential
Hotel Bleibergerhof Bad Bleiberg 108 confidential Bernd Hinteregger
Hotel Wienerwald Eichgraben 126 Steinberger family private
Cohotel Linz Linz 105 HB1 Hotels private
Ramada Hotel Innsbruck Tivoli Innsbruck 159 UBM Development AG Immo Kapitalanlage AG
4-star wellness hotel Lower Austria >100 confidential private
InterCity Hotel Vienna 179 private trust Warburg HIH Invest
K+K Palais Hotel Vienna 66 Koller family Highgate Hotels
K+K Hotel Maria Theresia Vienna 132 Koller family Highgate Hotels
International chain hotel Vienna >200 confidential foreign fund
Source: Christie + Co Research
MIPIM 2016 | ImmoFokus Austria
31

Hotel market
easily see a matching or even surpassing level
of transaction volume.” Several transactions
that were concluded in 2015, will only come
into force in 2016. “The contract for the sale of
the Mercure Grand Hotel Biedermeier Wien
with 198 rooms, for example, was signed in
2015. The transaction will be concluded within
the first two quarters of 2016”, Hochedlinger
explains.
“Investors have realised that hotels are more
economically sustainable than office properties.
The classic office property in Munich or
Frankfurt offers a yield of about 4,5%. Hotels
however, if managed correctly, can easily offer
returns of 5,5% and more”, UBM CEO Karl
Bier summarises the interest of international
investors.
The boom of budget hotels
The fourth Viennese Motel One opened at
the main station last spring. The project was
a cooperation between ECE Hamburg, who
developed the 60-metre-high hotel tower, and
the Württembergische Immobilien AG as investors
in a consortium with HIH Real Estate
Ltd. A Moxy establishment - that is, the budget
brand of Marriott - will open at Vienna International
Airport in 2017 and more are to follow.
Of special interest: Ikea is one of Moxy’s investors
and also took to designing the rooms. The
hotel, with an investment volume of 25 million
Euros, is being constructed behind the Office
Park on a part of Parking Lot C, which will facilitate
easy access to the terminal buildings via
the passenger tunnel. Conference guests can
make use of the near-by conference centre at
Office Park 3. Up to this point, the airport only
offered accommodation in 4-star hotels, with a
capacity of 500 rooms. This is now being augmented
by the modern and attractive life-style
hotel.
„Moxy has huge potential within the economy
segment in Austria. Its affordable rates cater
to young business- and leisure customers and
features such the modern design, the lounge
atmosphere and the focus on sustainability
will lead the concept to success,”attests B&K
managing director Petra Bierwirth. With the
Moxy Vienna Airport, B&K will manage a total
of 3 hotels in Vienna, including the Renaissance
Wien and the Courtyard by Marriott at
Wien Prater/Messe. Martin Schaffer of MRP
Hotels consulting firm believes that, “Between
10 and 20 of these budget hotels”, will open
„Investors have realised
that hotels are more
economically sustainable
than office properties.“
Karl Bier,
UBM CEO
„Moxy has huge potential within the
economy segment in Austria.“
Petra Bierwirth,
B&K managing director
in Vienna in coming years. There is potential,
especially in urban development areas, around
city-entrances and along the motorways. The
challenges for these hotels will be addressing
a broad target group, from business clients to
holiday makers, and offering good quality on
limited floor space.
The Main Station as a hotspot
The battle for customers around the new main
station has reached fever pitch. The Viennese
hotel group Star Inn has opened an establishment
with 500 rooms directly next to the new
Motel One. The competitors from Munich and
Vienna are shoulder-to-shoulder and are about
to receive further competition: Accor is planning
a hotel complex (Ibis and Novotel) on the
eastern side of station, while Hotel Zeitgeist
and Hotel Schani are also vying for customer’s
favour. Even though 2.500 beds will become
available at the QBC, but also at Motel One and
Star Inns, within the next few years - the city
remains of interest to investors. And how? “By
offering returns which may not be outstanding,
but very stable” concludes Martin Schaffer.
The new establishments around the main station
will be sure to intensify competition due
to their features.
n
32 ImmoFokus Austria | MIPIM 2016

The market has dried up
Comment: Martin Schaffer
MRP-Hotels, Managing Partner
n There has rarely been such a large amount of capital for investment
in hotel properties than is available right now. But the market has dried
up and attractive objects are hard to find, not only in Vienna.
2015 was a record-breaking year for the Austrian tourism industry. There
have never before been so many overnight stays. This staggering amount
of growth is largely due the federal provinces of Vienna, Salzburg and the
Tyrol, the rest of the country is stagnating or experiencing very limited
growth. Vienna grossed 15 million overnight stays and if the Viennese
Tourism Board has anything to say about it, that figure will increase by
another 5 million until 2020. This seems a realistic goal if one takes into
account such factors as population growth, passenger numbers at the
airport, increasing number of work places, demand development, etc.
Since many outdated objects are disappearing, the market needs increased
capacity in order to accommodate Vienna‘s guests. Despite prophecies
of doom from certain industry representatives, the occupancy
rate of solid Viennese establishments has not suffered from the increase
in capacity. It is good news to see the capacity growth in the luxury
segment bridled and - according to market data - this has not done any
damage to prices or occupancy rates within that segment. Fine establishments
(offering attractive products, brands and marketing) regularly
achieve average capacity utilisation of between 75 and 80 % (this
traditionally excludes luxury hotels, where the rate averages 65-70%).
International hotel management companies, as well as guests, are
eager to get into the capital; investors are being offered very favoura-
ble terms for operating agreements. A considerably more appealing
tenantry landscape than 5 or 10 years ago enables developers and investors
to select an attractive hotel operator, who is then in a position
to offer investors the security they need. The market is literally flooded
with national and international capital, however freely available
properties are a rarity. Prices can be so considerable that one wonders
about the chances of making any feasible returns at all. Or even if tenancy
agreements make sense, in the knowledge that they cannot be
fulfilled and that tenants will have to renegotiate in a few year‘s time
anyway.
Notwithstanding the generally favourable economic backdrops of the
major home markets and the expected increase of tourists due to unstable
markets in the eastern and southern Mediterranean, significant
investments in resort hotels in southern and western Austria have
become rare. A (usually foreign) investor may be procured for small
to medium investments of up to 5 million Euros, but for large-scale
operated hotels the choice of investors is thin. This stems from the fact
that there are very few available properties in seasonal or year-round
destinations. Furthermore, these very rarely receive public funding
and there aren‘t that many resort operators around who are able or
willing to guarantee for an investment.
My conclusion: The run on Vienna and tenantry objects in the provincial
capitals will continue unabated, while large-scale new construction
in southern and western Austria will become increasingly rare,
despite the positive market trend.
MIPIM 2016 | ImmoFokus Austria
33

Logistics Austria
A dusty landscape
The logistics centre Wien-Nord, near Hagenbrunn, has breathed new life into the market.
Two thirds of the total property inventory in and around Vienna require redevelopment.
by Harry Weber
F
or the first time, comprehensive data
of logistical properties in Greater
Vienna has been collected, surveyed
and evaluated. The results have been
published in the Logistical Property Report by
CBRE. Altogether, the Greater Vienna area holds
approx. 2,82 million sqm of logistical floor space,
of which more than half consists of class B, a
third of of class A and the remainder of class C
properties. “Class C denominates properties
that have very restricted usability due to age,
infrastructure, location or technical facilities.
In the course of the survey, we were able to ascertain
that around two thirds of all objects in
and around Vienna can no longer be categorised
as modern logistical properties”, says Felix
Zekely, Head of Agency at CBRE.
The proportion of class A properties is
largest in the areas of Wien-Süd and Wien-
Umgebung Süd, whereas zones in the east
display the highest obsolescence. Ten percent
or 250.000 sqm of logistical spaces
within Greater Vienna do no longer comply
with standards for long term economic viability.
“There is a definite potential demand
for logistical properties in and around Vienna”,
Zekely says, based on the survey and
classifications. “An increase in rental of new
terminals is possible within the next years,
provided such properties are developed. Also,
investors and developers have to be prepared
to deliver in advance and share some of the
utilisation risk by both speculative planning
and construction.”
Source: CBRE, Fotolia
34 ImmoFokus Austria | MIPIM 2016

MAIN LOGISTICS CENTERS / RENT LEVELS
SALZBURG
warehouse rent € 3,50 - € 5,00
land price € 80 - € 180
LINZ
warehouse rent € 4,00 - € 5,00
land price € 70 - € 180 VIENNA
own graphic
GRAZ
warehouse rent € 3,50 - € 5,00
land price €80 - € 180
“In order to gain a temporal advantage over
proprietary development, the projects have
to reach the level of planning permission. An
approved logistical property can be realised
within 6 to 8 months”, Zekely adds.
New developments in Lower Austria
Redevelopment of logistics and distribution
centres are happening in Lower Austria.
This is a consequence of the growth process
in Vienna and and a resulting transfer of
non-job-intensive logistical applications to
surrounding areas. In Hagenbrunn, north of
Vienna, a cluster was built and Straßhof on
the S1 motorway is becoming increasingly
attractive for logistics properties. The area
around Vienna International airport is also
showing potential, with new properties being
constructed in Enzersdorf and Fischamend.
“We expect the short-term development potential
for 2016 to be in the region of 130.000
sqm in Greater Vienna; at least that much has
been approved and can be constructed relatively
quickly”, says Zekely. He sees the progress
in new developments based on the fact
that developers and banks are more prone to
invest in such properties, because successful
projects (e.g. the logistics centre Wien-Nord
at Hagenbrunn) have already been implemented.
VIENNA / RENT LEVELS
WIEN WEST
warehouse rent € 4,50 - € 5,50
land price € 90 - € 280
WIEN NORD/OST
warehouse rent € 4,00 - € 4,75
land price € 80 - € 260
WIEN SÜD
warehouse rent € 4,50 - € 5,50
land price € 90 - € 280
WIEN HAFEN SPECIAL SITUATION
warehouse rent € 8,00 - € 11,00
VIENNA AIRPORT
SPECIAL SITUATION
warehouse rent € 8,00 - € 11,00
MIPIM 2016 | ImmoFokus Austria
35

Logistics Austria
INVENTORY IN VIENNA BY LOCATIONS
CLASS A
First-rate logistics sites, in excess of
5.000 sqm metres, complying with
international standards (hall depths
and clearances, number of gates,
traffic areas etc) and constructed less
than 10 years ago
CLASS B
Condition and configuration allow for
tertiary exploitation - with additional
investment, if necessary. Properties
usually exceed the 10-year mark
CLASS B
Old stock, unsuitable for continued
use as a logistical property due to
location, configuration and overall
condition
VIENNA
Challenges facing new logistics properties
The primary challenge is identifying plots
that can match the developer’s calculations, in
turn based on achievable rental value. On the
basis of a building development of 50% on any
given plot in line with standard market prices,
the price for land will not exceed 100 Euros
per square metre. Newly developed logistics
centres in Vienna are currently being offered
at very competitive prices in the region of 4,50-
4,90 Euro per square metre, a figure reducible
to low sale yields. “Tenants of logistics centres
are currently at an advantage within the Austrian
market, especially in Greater Vienna”,
Zekely continues.
B
C
A
VIENNA NORTH & VIENNA-ENVIRONS NORTH
CLASS A 176.300 34%
CLASS B 330.900 63%
CLASS C 14.000 3%
Chances for logistics properties
Logistical properties have gained a new importance
in recent years. Primarily, they are used
by logistics providers on behalf of their customers
(back-to-back rental agreements). The
length of the tenancy agreement corresponds
with the one stipulated in the service mandate
and usually lasts between 3 and 5 years. A fact
that makes the market for logistics properties
quite determinable.
“We believe in a high potential for new logistical
construction and expect a rise in development
and rental activities. Also, a significant
increase of investment volume is predicted for
this asset class”, Zekely concludes. He sees opportunities
for developers and investors who
have ready access to plots that conform with
the requirements of logistical development
projects.
n
C
B
C
B
A
A
VIENNA EAST & VIENNA-ENVIRONS EAST
CLASS A 193.100 40%
CLASS B 257.800 54%
CLASS C 27.400 6%
VIENNA SOUTH & VIENNA-ENVIRONS SOUTH
CLASS A 692.300 38%
CLASS B 945.200 52%
CLASS C 162.300 9%
Source: CBRE
36 ImmoFokus Austria | MIPIM 2016

VIENNA-ENVIRONS
C
TOTAL STOCK VIENNA & VIENNA-ENVIRONS
Stockerau
N
Korneuburg
Wolkersdorf
im Weinviertel
Strasshof
B
A
CLASS A 1.157.100 38%
CLASS B 1.655.800 55%
CLASS C 203.700 7%
Schwechat
Fischamend
Kittsee
Traiskirchen
E
Bruck an da Leitha
Leobersdorf
S
Nickelsdorf
Wiener
Neustadt
Eisenstadt
www.erstegroup.com
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is a financing partner where we need them.”
Yovav Carmi, Board Member Globe Trade Centre
Join us at
MIPIM, Cannes,
15.–18.03.2016
R7.E2
City Gate
Bucharest, Romania
48,000 m 2
Class A office space
Two 18-story buildings
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MIPIM Austria | ImmoFokus
37

Construction is
lagging behind
Excessive demand. The prices for freehold apartments will only rise moderately in 2016.
by Andreas Altstädter
„The freeholds in
suburbia are booming
because people
can’t afford these
flats in central
locations anymore.“
Bernhard Reikersdorfer,
RE/MAX managing director
T
he increasing supply of properties
in 2015, the solid demand, stagnating
prices, historically low interest
rates and the tax reform - all these
factors have influenced the market and let it
thrive like seldom before”, RE/MAX managing
director Bernhard Reikersdorfer gets to the
heart of things. Despite all this, there is still a
feeling of unease. Residential properties remained
at the top of the shopping lists and are still the
most popular investment type, but purchasers
have become much more critical, cautious and
deliberate in their decisions to buy - compared
to previous years. For 2016, Reikersdorfer expects
only a slight increase regarding supply and
demand.
The Viennese market in particular will be
characterised by a strong growth of population,
more so in 2016 than in previous years. Excess
demand will intensify in the segment of lower-cost
apartments, while the luxury segment
will suffer from slow economic development.
Up to now, experts predicted an annual in
growth in population for Vienna at between
25.000 and 30.000 individuals. Current figures
by Statistics Austria suggest an increase
of the Viennese population of 43.000 people
in 2015, all of whom are looking for accommodation.
Taking into account existing building
work, this results in additional demand of at
least 6.000 units. “In the current climate, the
38 ImmoFokus Austria | MIPIM 2016

excess demand can only be met with the construction
of large residential objects,” says Daniel Riedl, CEO of
BUWOG. “It goes without saying that every small development
and loft conversion eases the pressure, but these
will not be sufficient in balancing the market. At the moment,
this can only be achieved by property developers
who can deliver projects in high quantities.”
The demand of living space will remain above the available
space. “We still have excessive demand on the residential
market and it will only increase”, says Michael of
EHL Immobilien. This will keep property prices high and
stable throughout 2016, Ehlmaier does “not expect any
further, excessive increase”.
“The medium price range, which makes up the bulk of the
residential supply, won’t face any significant changes in
2015,” attests Sandra Bauernfeind, EHL residential property
expert. Only the absolute luxury segment - in the
range of 10.000 Euro per square metre - will not see any
price increase at all, even though the decline following
the sanctions on Russia and the conflict in the Ukraine
has abated. Prices have risen by about 2% for upmarket
apartments in districts inside the Gürtel. The demand for
expensive units remains high, the vacancy rate is practically
zero, new building are usually fully rented before
completion and a price of 4.000 Euro per square metre
is not unusual anymore”, Bauernfeind continues. The
reason for this upward trend lies in the great dynamism
in the lower and medium segments, which influence
upmarket prices with their crowding-out effect. “If apartments
of average residential value are fetching prices you
would have paid for outstanding apartments a few years
ago, then it only follows that you have to pay more for
higher quality”, Bauernfeind concludes.
„Budgets for living remain
unaltered and Austrian have to
make do with less.
This is evident in floor space
as well as with fixtures and
fittings.“
Patrick Schenner,
Managing Director of ImmobilienScout24 in Austria
„The excess demand can only be
met with the construction of large
residential objects.“
Daniel Riedl,
BUWOG CEO

Living Austria
DISTRICT SALES RENTAL
FIRST-TIME
OCCUPANCY
OTHER
FIRST-TIME
OCCUPANCY
OTHER
1010 WIEN · INNERE STADT 17,500 10,300 no data** no data**
1020 WIEN · LEOPOLDSTADT 4,800 3,300 11,5 9,5
1030 WIEN · LANDSTRASSE 4,850 3,500 11,8 10,2
1040 WIEN · WIEDEN 4,950 3,550 12,5 10,5
1050 WIEN · MARGARETEN 4,300 3,300 11,2 10,4
1060 WIEN · MARIAHILF no data*** 3,200 12,5 11
1070 WIEN · NEUBAU 5,600 4,200 12,7 10,8
1080 WIEN · JOSEFSTADT 5,650 4,200 12,8 10,9
1090 WIEN · ALSERGRUND 5,400 3,900 12,8 10,9
1100 WIEN · FAVORITEN 3,250 2,150 10 8,5
1110 WIEN · SIMMERING 2,850 1,900 9,5 8,4
1120 WIEN · MEIDLING 3,800 2,800 10,9 9,2
1130 WIEN · HIETZING 5,050 3,800 12,5 10,7
1140 WIEN · PENZING 3,800 2,800 10,7 9,8
1150 WIEN · RUDOLFSHEIM 3,350 2,400 10,6 9,5
1160 WIEN · OTTAKRING 3,600 2,400 10,3 9
1170 WIEN · HERNALS 3,900 2,700 10,3 9,5
1180 WIEN · WÄHRING 5,100 3,300 12,3 10,5
1190 WIEN · DÖBLING 5,950 3,950 12,7 10,8
1200 WIEN · BRIGITTENAU 3,500 2,150 10,2 9,2
1210 WIEN · FLORIDSDORF 3,350 2,150 10,2 9,6
1220 WIEN · DONAUSTADT 3,550 2,550 10,2 9,3
1230 WIEN · LIESING 3,650 2,700 10,3 9,7
* Source: Statistics Austria, Wage Tax Statistic 2014, average annual net rate in Euro, as of Dezember 2015
** Since this report is based on apartment rents, which do not fall within full implementation of the of tenancy legislation, we have opted for not including data of the 1st district,
due the sample being too small to be meaningful.
*** The sample was to small to yield meaningful results.
Source: EHL
Central location in high demand
There is an especially high demand for freehold
apartments in central locations and
suburban areas. “The classic inner city freehold
apartment will register the highest value
enhancement of all property classes”, the real
estate experts agree. “The freeholds in suburbia
are only booming because people can’t
afford these flats in central locations anymore.”
Demand and prices for freehold flats in rural
areas will suffer accordingly. Viewed over a
longer term, both suburban and rural freehold
flats will gain popularity. “High prices in the
cities, improvements to public transport and
accessibility to the high-power road network
are beginning to show effects”, says Reikersdorfer.
Bauernfeind makes out another trend: The optimisation
of floor plans, which means that flats
are getting smaller but retain the same number
of rooms - often at the expense of storage
areas, like closets. However, apartment sizes
are highly dependent on their micro location:
While a newly-constructed, central 2-room
apartment is considered big at 45 square metres,
the same number of rooms cover an area
of 60 square metres in Hietzing. Also, fewer
family units are being built, the focus instead
shifting to smaller or single flats in accordance
40 ImmoFokus Austria | MIPIM 2016

Vienna as a safe haven
Comment: Richard Buxbaum
Otto Immobilien
n You can‘t miss it: Never before has the demand of international investors
in Viennese residential properties been this high – and due to
demographic developments it will remain so. Countless foreign investors
are entering the capital‘s market for residential properties, for a
variety of different reasons.
Vienna is renowned not only for secure and lucrative investments but
is also of interest to investors because of its cultural scene, political
stability, sense of personal security and diverse range of educational
offers. All the facts combined have made Vienna the city with the highest
quality of living worldwide for several years running, as attested by
the „Quality of living“ study conducted by Mercer.
So, which location and price classes are at the top of international
investor‘s „shopping lists“? We notice that a range of different locations
are assessed but that the majority is only really interested in the districts
within the Gürtel. Usually, larger residential units are under consideration,
from anywhere between 2.000 and 10.000 square metres.
As a rule, national partners are brought onboard for this, putting the
actual implementation into the experienced hands of local experts,
including project developers, solicitors, tax consultants and estate
agents with international references.
Apart from international investors, there are of course the national
players, whose knowledge of the market presents a certain advantage.
This is why they usually act as co-investors and it is safe to assume
that they will continue to have a large share in the residential property
market of Vienna.
But back to international investors: according to our experiences,
they like to see the properties for themselves and gather information
on the market autonomously. We notice that for an object to be
interesting as an investment, the investor needs to like the location
himself. Numbers aren‘t everything, especially when investing in
large residential objects - and a certain love of Vienna might also play
into it...
MIPIM 2016 | ImmoFokus Austria
41

Living Austria
PREFIX 2016: Housing
5,0
4,0
+4,4
+3,9
3,0
2,0
1,0
0,0
-1,0
Property
Rent
+1,0 +1,0
Property
Rent
Property
Rent
-2,0
-3,0
-2,0
-2,4
Centrum Outskirts Country
anticipated price changes in %
with a changing demographic. “The developers
themselves have no other choice, because
they need to achieve high rents to cover their
costs and remain profitable. But bigger apartments
are rentable to a smaller number of
families at the square metres prices they need
to achieve”, says Bauernfeind. “The trends of
the last few years continue. Real incomes have
not been able to keep pace with price rises on
the property market. Budgets for living remain
- in a financing environment with a high equity
ratio - unaltered and Austrian have to make do
with less. This is evident in floor space as well
as with fittings, where a certain modesty is becoming
apparent”, in the words of Dr. Patrick
Schenner, managing director of Immobilien-
Scout24 in Austria.
Austrian cities speak for a continuation of
these trends: Vienna ranks 1st worldwide for
quality of living, provincial capitals like Graz
and Salzburg are becoming more popular.
Studies predict the biggest population growth
in central Europe for Vienna. “It is therefore
not surprising that more and more foreign investors
are looking to Austria for secure, longterm
and lucrative investments”, says Gerhard
Hudej of Hudej Zinshausmakler Ltd.
PREFIX 2016: Price-Segments
„Tenements rarely
offer room for the
Lucky Punch.“
Gerhard Hudej,
Hudej Zinshausmakler Ltd.
The attractiveness of the residential markets
compared to other parts of the market is leading
to an increase of conversions of properties into
apartments. Another remarkable fact is that it is
becoming common to see residential high-rises
rather than office towers or office towers that
are converted into apartments. “An upmarket
segment is emerging here that is new for Vienna,
which offers an attractive alternative to a
conventional new flat”, says Bauernfeind. Such
a use is under discussion for the Marina Tower
at Handelskai.
Prices are also on the up for Vienna’s old tenement
houses. The fundamental data for the
8,0
6,0
4,0
2,0
0,0
-2,0
-4,0
Demand
-3,7
-1,0
Offer
Price
-2,3
upper
price segment
+2,3
Demand
+2,2
Offer
+0,7
Price
mid
price segment
+6,8
Demand
+1,6
Offer
+2,4
Price
lower
price segment
42 ImmoFokus Austria | MIPIM 2016

PREFIX 2010-2016 total
7
6
5
4
3
2
1
0
-1
-2
-3
4,9
4,6
1,2
4,6
5,7
3,4
6,3
5,6
2,4
-0,3 -0,3
0,7
-0,2 -0,1
2010 2011 2012 2013 2014 2015 2016
2,8
2,4
-1 -2,3
Offer
+2,5%
Demand
+2,1%
Price
+0,6%
MIPIM 2016 | ImmoFokus Austria
43

Living Austria
SPECIAL CASE SALZBURG.
Special case Salzburg
Not so in Salzburg: Traditionally, German
investors were active here, but Austrians are
increasingly showing interest. The demand
is increasing despite special circumstances:
Tenement buildings in Salzburg are very expensive
and refurbishment costs high due to
preservation orders and the rules of the historic
town commission. Top locations can have
yields of 2,75%, beyond that 4% - sufficient to
entice potential investors.
„The excess demand can only be
met with the construction of large
residential objects.“
Michael Ehlmaier,
Managing Associate,
EHL-Immobilien
The tenement market will continue to thrive
in 2016, because the economic framework
conditions are set to stay unchanged: Interest
rates are low and alternatives on the capital
market sparse. Most alternative investment
forms either have yields that are too low or
risks that are too high. However, tenements
offer the right balance between return and
security.
Both private and institutional investors still
have large amounts of financial assets at
their disposal, which means that demand for
tenement buildings will stay high, not only in
Vienna. Investors are homing in on Graz and
Salzburg, two cities with great potential for the
future. Investments are still fairly reasonable, in
Graz particularly. At the same time, the supply
is diminishing across the country - a sign of
higher prices to come. “The more selective a
market, the more important to gain competence
through specialisation. What is also needed is
a first-class network - tenements rarely offer
room for the Lucky Punch”, Hudej concludes.n
44 ImmoFokus Austria | MIPIM 2016

2016 – a property year!
Comment: Markus Arnold
Arnold Immobilien
n A very successful year – it may even have been the sector‘s most
successful – has ended and the new one has started with promise in
many respects. First, there are existing investments, second there is
the continuation of unprecedented interest in property – the sums being
invested by international players in the Austrian market and in the
Viennese one especially, are quite staggering.
Unfortunately, we also have to deal with topics that are less cheerful.
New taxation laws came into effect on January 1, 2016, which exclusively
affect property sellers and the successful agents within the
market. The increase of a property profits tax - only recently introduced
in the first place – by 20% seems rather dubious. The rise in
capital gains tax (which affects every successful businessperson, not
just property entrepreneurs) has also not put a smile on our faces.
And the outcome of the tenancy law reform remains to be seen, but
I doubt it will bring joy to the industry. While all these measures deserve
criticism, they will not hinder the property business‘s success,
in fact will not even stall it. There simply is not alternative to property,
see for this the vicious circle of stock market carnage, as we have
in Asia this year.
In the buyers area of foundations and wealthy private investors a
special development has occurred, which was viewed with diluted
pleasure, even by the most steadfast optimists. „People will always
need accommodation“ - this slogan used to be the mantra for investors
to focus on residential objects, but recently there has been a tendency
towards the more risky commercial property. Properties in foreign
surroundings are also attracting more and more investors, a trend
that benefits Austria, because borders are slowly disappearing. Ser-
vices provided and the companies that offer them have both become
very professional, markets are more transparent. Rental rates, asking
prices and sales prices are now standard for evaluators and agents in
most markets and are quoted as a matter of course and service to the
customer. This encourages trust in the markets and in one‘s own investment.
Europe‘s appeal as an investment market is made evident
by the presence of new, Asian funds - often promised, spoken of and
now materialised. It is currently used for core properties, but the stone
creates the biggest ripple where it hits the water and ripples become
waves. In a few years time, wealthy private investors will purchase
their European home where institutional Asian investors are buying
today. Incidentally, it would be high time to lift the sanctions against
Russia and also allow these people to spend their money here. To date,
these sanctions have only served the US.
Why is Austria such an interesting market? Because it is stable, in
quality of life and in sustainable real-estate industry. The constant
flood of regulations is more of a pain for local service providers and
developers than final investors and it would be in our interest not to
inflate every banana skin into a lethal meteor.
One thing is sure: No rule or regulation will stop 2016 from being
another successful year. And to those who fear the foreign buyers, I
say: They do not actually walk away with the properties. The fear of
refugees and their impact on the property industry will not be subject
of this commentary, not least because they have come up in conversations
just about everywhere. I will just say this: the overwhelming majority
of (Syrian) refugees who have fled crime, violence and injustice
want to return to their country, eventually.
MIPIM 2016 | ImmoFokus Austria
45

The
Positions & Opinions
HUNT for
RECORDS
Franz Paul Bauer
46 ImmoFokus Austria | MIPIM 2016

Wolfdieter Jarisch
MIPIM 2016 | ImmoFokus Austria
47

Positions & Opinions
S+B managers Wolfdieter Jarisch and Franz Paul Bauer enjoy a longstanding
friendship. Both are attracted to the unconventional and to
calculated risks, as they divulge in this interview with ImmoFokus.
interviewed by Michael Neubauer
How did you come to work in the property
sector?
Wolfdieter Jarisch: That’s quite an interesting
story. In my youth, I spent lots of time in the
mountains and took part in expeditions to the
Himalayans and the Karakoram. I knew I wanted
to work outdoors. So the Montan university
seemed a great choice, lots of time outside. It
struck me as interesting.
I applied to the university and the reply I got
was this: It would be best to complete education
at a Higher Technical Institute first. During
my time at the HTI, I did some surveying work
for Verbund. I enjoyed this so much that I started
a degree course in surveying at the Technical
University in Vienna. Compared to the real
world we only had very antiquated equipment
at our disposal, which is why I left the course
after the first - rather frustrating - year and
decided to gather some practical experience. I
joined Thyssen Structural Engineering and after
three successful years there started my own
business together with three of my colleagues.
Projects kept growing in size and our last joint
project - EDUSCHO administrative headquarters
- pointed me in the direction I wanted to go.
This is how I ended up at S+B, almost 24 years
ago. My first project was the residential park
Dresdner Straße, made up of 500 apartments,
10.000 square metres of office space, a kindergarten
and a shopping centre.
Franz Paul Bauer: S+B grew out of the Viennese
architecture firm Marschalek, Ladstätter
& Beck and the construction company I+R
48 ImmoFokus Austria | MIPIM 2016

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MIPIM 2016 | ImmoFokus Austria
49

Positions & Opinions
„If I invests in a property and
hold onto it for 20, 30,
maybe even 50 years, then I
need to be able to count on the
fact that I can achieve worthwhile
rental figures that are
worth my while.“
Franz Paul Bauer
Schertler of Vorarlberg. In 1979, the architectural
firm was charged with the re-design and
re-development of parts of the Viennese port
facilities. For this project, several hydraulic engineering
students of the Technical University
were recruited; I was one of them. I had not
been with the company very long before I was
put in charge of several branch offices. In the
mid-1980’s, we began to form the structures for
joint projects with I+R Schertler in Germany,
Hungary, Romania and the Czech Republic.
After two decades as chief executive of our
foreign branch offices and managing the local
projects, I was in elected to the board of
the superordinate S+B Gruppe AG and put in
charge of foreign operations. My 37 years with
the company and its forerunners have been
filled with countless interesting, innovative
and challenging development projects, many
of which have been distinguished with awards.
After so many years in the business, do you
have a favourite project?
Franz Paul Bauer: You are always most passionate
about the projects on hand. But even once
a project is finished, “released into the world”
or sold to a third party, a small part of me remains
connected to that project. One of the
projects that has stayed with me is the club hotel
Pruhonice in Prague, because its beginning
were anything but easy. The hotel was under
construction at the end of 1980’s, at the time of
the Velvet Revolution. It was common practise
to involve local building companies as subcontractors
in such projects, a practise that we also
followed with the club hotel Pruhonice. In the
early stages of the political shift, the company’s
heads asked for our permission to go to Wenzel
Square with their workers and join the demonstrations
after 2.00 pm. It didn’t take long
for our construction site to be deserted, for all
local workers only had eyes for the massive
changes about to happen to their country.
For days, only Cuban and Vietnamese labourers
turned up for work. There were claiming
to be skilled workers, something that was sadly
not reflected in their abilities. We were pretty
much saved by charge-hands and foremen of
I+R Schertler, who started a cooperation with
our internal project and construction management,
training the remaining workers and ensuring
progress on the site.
The project was finished - despite these turbulent
conditions - soon after the political shift
had taken place and we became one of the first
businesses that were allowed to acquire and develop
land in Prague. Unfortunately, the necessary
infrastructure was not in place at that time.
An international bank transfer, for example,
could take well over a week and transactions
required the trust of local sellers. Today, the signing
of the contract and transfer of the money
happen almost at the same time, something
that was unimaginable back then.
Wolfdieter Jarisch: I have many favourite
projects. We keep getting involved with unusual
projects, properties that have a certain
something. We are also notorious for taking
on projects no-one else would touch with a ten
foot pole. I am thinking of the Mobilkom project
on Obere Donaustraße in particular. In one
fell swoop we acquired the land, negotiated a
tenancy agreement with Mobilkom and found
an investor. Another exciting project was the
Europay at Wien Mitte. While Europay had to
be available around the clock for all of Austria’s
ATMs, we were busy construction several
underground floors below the workers. And I
50 ImmoFokus Austria | MIPIM 2016

Künstler zu „Ideen brauchen Raum” / Leopold Kessler, Pawlatschen, 2015
I D E E N
B R A U C H E N
R A U M
www.bai.at
3007

Positions & Opinions
Franz Paul Bauer
„The most fun is to be had
with the old-timer Triumph
Thunderbird 1952.“
have very fond memories of the Schlosshotel
Waidhofen an der Ybbs. This involved the refurbishment
of an old listed building in danger
of collapsing. We had to use diamond cutters
to remove rocks in order to accommodate the
new spa and event areas.
You mentioned the mountains - do you still
go mountaineering?
Wolfdieter Jarisch: The passion for it remains. A
certain wistfulness comes over me when I look
at films and pictures, but I gave up mountaineering
when I got married. Almost every expeditions
claimed a life - sometimes close friends.
And chances were that at some point it would
have been me who didn’t come back. Since I am
married with 4 children, responsibility dictates
that I only undertake small tours. Sometimes
we take the kids for a hike to somewhere between
3000 and 4000 metres, but I no longer
hike seven-thousanders or the coldest mountain
on earth.
A what was the highest mountain so far?
Wolfdieter Jarisch: The 7.266 metre Diran. The
most challenging was the 6.814 Ama Dablan, a
mountain that had defeated mountaineers like
Reinhold Messner. We were part of the 68th
tour. Another great experience was Mount
McKinley (6.190 metres), at -48°C and blizzards
with wind speeds of 200 km/h.
What is the allure of climbing a mountain?
Wolfdieter Jarisch: To stand at the summit is
breathtaking. It is quite an uplifting feeling to
look down on the world, see the surrounding
mountains and to realise how insignificant humanity
really is. Then again, after a descent you
look back and say to yourself: I was up there a
little while ago and I - an insignificant human
- managed to do it.
Mount Everest – not relevant or have you
simply not had the chance?
Wolfdieter Jarisch: I would have loved to have
done Everest, together with Lhotse. I was always
my dream to do two eight-thousanders
within 24 hours, and Mount Everest is connected
to Lothse via the South Col. It would have
been amazing. Instead, I now have a wife and
four children. An achievement of a different
but no less thrilling kind...
Franz Paul Bauer: The are more or less flowing
transitions between business and pleasure.
The development of new projects through the
collaboration of many enthusiastic colleagues
creates a lot of fun. I am convinced that the entire
staff of S+B gain more enjoyment from this
than the rest of the population can get from
their favourite hobbies. Still, there are hours
and days that are and should be filled with
52 ImmoFokus Austria | MIPIM 2016

other activities. I have three grown-up children
and 5 beautiful and healthy grandchildren, so
family plays a very important role in my life.
To create a good balance with the daily business,
I enjoy participating in concerts of the
Haydnkirchen choir and the Haydn orchestra
Eisenstadt. My brother Josef founded both in
1972 and since then we have staged a different
Haydn mass about every 3 months, sometimes
involving more than a hundred musicians.
This requires great empathy, discipline and
precision. The long-standing collaboration
with the other musicians and my passion for
this type of music let me forget all the stress of
work in no time.
You seem to have a thing about heights. The
Danube Flats will be the highest residential
building in Vienna. The project has been controversial.
There has been fierce opposition
from action groups, but also equally fierce encouragement,
for example by Green politician
Christoph Chorherr. Did you ever think: This is
not going to happen!
Wolfdieter Jarisch: No, I was always sure it
would work out. The difficulty was to make
people see the added value of this project.
Right now, everything is covered in concrete.
By building a new high-rise, we have enabled
the creation of more green and open spaces.
If you stand at the Harry-Seidler house right
now, all you can see is the concrete facade of
the cinema-/minopolis building. Even going
up some steps will not let you get a view of
the Danube. All this will change. Everything
will be on one plane with views towards the
Danube and the Inner City and the river will be
accessible from the site.
A brief word regarding the action group: We
were always ready for talks. There were a
couple of ringleaders, who were opposed to
the project. One of them approached me a
year later and told me that after having gone
for a walk with his daughter, he had changed
his opinion completely. It would be great if the
place was green and children would be able to
play there. Right now, everything is covered in
I also try to make time for motorcycle tours
with friends, children and my son-in-law, for
example along Route 66 or Highway 1, along
the pacific, in the neighbouring countries and
predominantly in Austria. The most fun is to
be had with the old-timer Triumph Thunderbird
1952.
As in previous years, we are planning to take
our bikes along when we go to the MIPIM. This
year we’ll stop at Lake Garda for a day or two
and explore the countryside on our bikes.
Usually, the gardening season starts as soon as
the MIPIM is over, something that brings the
whole family together outdoors.
„Without stamina and
ambition, you don’t stand a
chance in scaling any mountain
or property project.“
Wolfdieter Jarisch
Would you describe yourself as being ambitious?
Wolfdieter Jarisch: Yes! I think to a certain
extent this comes from my involvement with
sports. Without stamina and ambition, you
don’t stand a chance in scaling any mountain
or property project.
Franz Paul Bauer: Within recent years, S+B was
able to realise countless projects from first conceptual
ideas to planning, construction, rental
and the handover to the final investor. Every
venture presents an exciting set of challenges
and from this results a feeling of immense
pleasure, an almost intoxicating feeling. This
is what feeds my inner motivation.
MIPIM 2016 | ImmoFokus Austria
53

Positions & Opinions
litter and empty beer bottles. He hoped that
the project would give a boost to the area and
the shore zone. For families and children, this
would be a great place to meet.
How did you tackle the problem with winds
on the upper floors of the Danube Flats?
Wolfdieter Jarisch: Until now, every highrise
building in Vienna had a smooth facade.
Down winds, which also cause problems at
the base of the buildings, are intercepted by
an off-set floor arrangement. Each terrace is
covered by the floor above and the parapet
area has been equipped with low planting
troughs. This gives views of the city from
inside and an outer glass shield offers added
protection outside.
Do you think that high-rises are the type of
housing for the future?
Wolfdieter Jarisch: Some areas lend themselves
to high-rises. Prices for land are ever-increasing,
the only true alternative is to build up. I
don’t think that everyone will be living in 100
metre high-rises, but considering the number
of apartment seekers, we won’t really have a
choice but to build higher.
The MIPIM has shifted the main focus of
its attention away from commercial properties
towards housing. Is the residential
market overtaking the office market?
Wolfdieter Jarisch: There is always an up and
down movement, a cycle of wave motions.
Right now, we are finding ourselves in such a
phase again. Let’s not forget that the demand
for office properties is still there. We are currently
developing 20.000 sqm of office space
at Wienerberg and a boarding house at Vienna
Biocenter - St.Marx. In recent years the ratio
used to 2/3 office to 1/3 apartments and other
properties. At present it is inverted.
What will you be looking for at MIPIM?
Wolfdieter Jarisch: We have a booth there to
present our projects. I have been interested
for some time now in residential high-rises
with lots of open spaces and terraces. However,
there aren’t many; our project is one of
only a handful worldwide that offer terraces
which wrap all around the building. Each
unit has its own terrace, we want to set new
standards of living that way. A cooperation
with the University of Natural Resources and
Applied Life Sciences has been ongoing for
two years, where we are trying to find plants
that are suited to the environment of a highrise
- altitude, temperatures, irrigation and
the intensity of sunlight all differ from normal
gardens.
One of your most recent projects is a
student’s residence. A first for S+B?
Wolfdieter Jarisch: It is our first project focussed
on student accommodation and with
the German Investa Immobiliengruppe we
have managed to find a reliable and experienced
partner. The area around the Prater is
up-and-coming among young people due to
the presence of several universities, modern
infrastructure, bars, recreational areas and
gyms. So, we are very pleased to have secured
such an ideal student location. We hope to start
construction after the summer holidays.
With an opening date of ?
Wolfdieter Jarisch: We expect a construction
period of about 1,5 years.
What would you term the three key requirements
for a property developer?
Wolfdieter Jarisch: During the last decade, we
have noticed that the time from acquiring land,
planning, receiving building consent to the
sale or rent of the property has continuously
stretched from 4-5 years and has now reached
6-7 years. The whole process takes longer, it isn’t
slow, it just takes a long time: There a more regulations
to comply with. We may live in times
of favourable financing, but a term of between
7 and 10 years causes problems for any investor.
54 ImmoFokus Austria | MIPIM 2016

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Positions & Opinions
Perhaps a streamlining of procedures is possible
through new modes of operation. Another crucial
factor are re-zoning processes, which lack
clear rules. Developers need planning contracts
with clearly articulated and binding agreements
so they can calculate soundly. Finally, a certain
continuity regarding tenancy rates and conditions.
If I invests in a property and hold onto it
for 20, 30, maybe even 50 years, then I need to be
able to count on the fact that I can achieve rental
figures that are worth my while.
Mr Bauer, you are in charge of foreign markets.
How is business in Hungary?
Franz Paul Bauer: Hungary is definitely part of
an upward trend. We were very active in the
Hungarian market from 1988 onwards and
built many residential and office properties.
After a little more than ten years, however,
Prague became a significant player and we consequently
shifted our emphasis to that market.
What about Poland?
Franz Paul Bauer: The western press is eagerly
publishing very harsh articles about Poland
at the moment. Contrary to these, we register
pronounced interest of prospective tenants in
our office spaces and a massive demand for
finished and rented houses.
What is the relationship between residential
and office properties in Poland?
Franz Paul Bauer: We are currently exclusively
developing office properties in Poland. Last
year we sold our Hampton by Hilton Warsaw
City Center - a hotel with 300 rooms in the centre
of Warsaw - to Union Investment, but are
still operating it. In the coming weeks our next
Warsaw project, the boutique office Królewska,
will be completed. And demolition work has
started on the plot of our latest office project
in the prime location above the underground
station “Zentrum”.
Are Krakow or Lublin options for the S+B
Gruppe?
Franz Paul Bauer: We are concentrating
our efforts on Warsaw at present, but are of
course always reviewing properties in other
cities. While the capital offers work, we will
keep our focus there. And one must not
forget: we are a family business. We are currently
investing around 200 million Euro in
Poland, 150 million in Prague and a further
100 million in Bucharest. And then there
are major projects in Austria. Being a family
enterprise, we don’t deal with bulk commodities,
but rather create special one-offs and
therefore select wisely.
Wolfdieter Jarisch
„I would have
loved to have done
Everest.“
What are your thoughts on Romania?
Franz Paul Bauer: Trending upwards. Until
2006/2007, economic growth was sensational
when a dramatic crash hit in 2007/2008.
It took Romania longer to recover from this
than Poland or the Czech Republic. One of
the reasons for this renewed ascent of the
Romanian economy is the rigorous legal
pursuit of criminality and corruption. Poland
56 ImmoFokus Austria | MIPIM 2016

„Potential buyer are currently ‘suffering’
from excess liquidity, which is met
by a diminishing number of suitable
properties in Austria, Germany and their
neighbouring countries.“
Franz Paul Bauer
THE S+B GROUP
The S+B Group has been realising
projects since 1986, acting as property
developer, investor and general contractor
across Europe. The team around
Günter Schertler and Alfred Michael Beck,
is specialised in the holistic interplay
of planning, construction management,
economic regulation and marketing.
Thus all project procedures are managed
and supervised by one provider which
guarantees an optimal outcome.
Major projects are realised all over
Europe. The basis of success is formed
by a combination of regional employees
on site and international experience.
Real estate with around 850,000 m2 of
usable area and totalling an investment
volume of more than 2,5 billion euros
has been developed over 25 years.
Even before the fall of the Iron Curtain,
S+B Group was active as a property
developer in Eastern Europe from 1986.
Another 400 million euros is set to be
invested over the next four years.
The common thread running through all
projects is the commitment to intensive
economic analysis, a well-conceived
choice of location as well as state-ofthe-art
architecture and functionality.
implemented measures to that effect in the
mid 1990’s and is now garnering the fruits
of its labour. Romania is following suit. Our
properties in Bucharest are fully rented and
we are about to embark on the next big project,
a hotel building complete with office
and logistics facilities, directly at the airport
terminal.
Companies like Raiffeisen-Evolution
have withdrawn from the Romanian market...
Franz Paul Bauer: True, several large corporations
have gotten cold feet during the last few
years and have withdrawn. This is often due
to a decision made from a distance. A family
business like ours is in situ and can continue
to select the best projects.
It is said that large amounts of Asian capital
are flowing into the Austrian market.
Also to your company?
Wolfdieter Jarisch: I have heard as much. At
the moment, this has very little to do with us.
Is there enough money in the market for
countries like Romania?
Franz Paul Bauer: Potential buyer are currently
‘suffering’ from excess liquidity, which
is met by a diminishing number of suitable
properties in Austria, Germany and their
neighbouring countries. This allows for the
assumption that internal barriers will soon be
lifted and Romania will once again become a
target market for international funds etc.
What are S+B’s key success factors?
Franz Paul Bauer: Since the foundation of
S+B by Alfred Michael Beck and Günter
Schertler, an entrepreneurial culture of ongoing
innovation, pleasure and the pursuit
of the highest possible quality has emerged.
Many of our employees have been with the
company for over 20 years and are devotedly
coaching new arrivals in order for them to
experience success as well. With a strong emphasis
on decentralisation, we seek the most
suitable projects, plan them, build them, rent
or sell them and are happy to look after them
as property or facility managers, if the new
owners want us to do so. Both tenants and
purchasers notice the positive atmosphere
we bring to every stage of a project.
And where is S+B headed in the future?
Franz Paul Bauer: The last 5-10 years have
seen several highly-qualified young colleagues
reach new levels of potential for even
bigger tasks. Therefore, I think we can safely
assume that the S+B success story will find
a continuation and extension in the coming
years.
n
MIPIM 2016 | ImmoFokus Austria
57

Neighborhood Development
A quarter of
a new Future
58 ImmoFokus Austria | MIPIM 2016

New, urban and modern: on the ground of Vienna Central Station, a former barrier and industrial
wasteland transformed into a place of the future. Covering an area by the size of a district, a unique
district close to the center is created until 2018 for mobility, housing and work.
by Priska Koine
MIPIM 2016 | ImmoFokus Austria
59

Neighborhood Development
AN AREA THE SIZE OF THE JOSEFSTADT.
The city of Vienna has invested a billion euros
to develop the 109 hectare site. The demolition
of the old South and East Railway Stations has
freed up an area equivalent in size to the capital‘s
8th district and opened possibilities for urban
planning of the future.
V
ienna is in a process of continual
growth. Until 2030, two million
people will be living in the Austrian
capital, an amount equivalent to all
the people currently living in Graz, Austria‘s
second-largest city. To meet the challenges in
connection with this growth, the efforts of politicians,
urban planners and a number of clever
minds are required. In 2003 the federal government,
the City of Vienna and the ÖBB issued a
memorandum for a comprehensive master plan.
A new part of town includes residential areas,
places of work and new infrastructure. Among
the many developments currently under way in
Vienna, the area around the main station is
seizing a unique opportunity: An attractive
quarter for the future evolves close to the city
centre, encompassing schools and jobs, living
and traveling, leisure and relaxation.
1 billion euros for a new quarter
The hard facts: Vienna is investing around a
billion euros to develop the 109 hectare site.
The demolition of the old South and East Railway
Stations has freed up an area equivalent
in size to the capital‘s 8th district and opened
possibilities for urban planning of the future.
For many decades the area created a barrier
60 ImmoFokus Austria | MIPIM 2016

KEY DATA OF
STATION GROUNDS
NEW RAILWAY INFRASTRUCTURE
500.000 sqm real estate
32.000 sqm roof surface
20.000 sqm shopping mall
14.000 noise protection windows
8.000 m noise protection walls
1.150 bicycle parking places
1.000 trains per day
630 car parking spaces
100 km newly constructed track
90 retail outlets
12 tracks within the station
5 island platforms
NEW PART OF TOWN
590.000 sqm real estate
550.000 sqm office space
7.000 sqm public parkland
7.000 m bike paths
5.500 m road network
5.500 residential units
DEVELOPER
ÖBB Infrastruktur Bau & ÖBB
Immobilienmanagement GmbH
ARCHITECTS
Viennese Team:
Werner Consult ZT with the Architiekts
Hotz/Hoffmann, Wimmer and Zechner
& Zechner ZT
with a mixture of tracks and industrial sites,
but now a re-development is under way. Half
of the site is occupied by the new main station,
complete with retail outlets at BahnhofCity,
and represents a transport hub of national and
international relevance.
The other parts are used by company headquarters
such as ÖBB and Erste Bank or are
being developed to create office spaces as well
as residential units and recreational areas. By
2018, 5.500 apartments, 20.000 work places
and 550.000 sqm of office and retail space
will be created. Schools and kindergartens for
1.200 children and parkland totalling 7 hectares
will be built. This part of town is transforming
itself into a multi-cultural, attractive
living environment.
The station as the core element
At the heart of the new quarter lies the station,
the origins of which date back to 1841. As a
place of beginnings and departures it has
endured through both heydays and depression
(see box), but it is about to become much more,
says mayor Michael Häupl, „The main station
is a key project for Vienna and symbolises
the hub function of the city at the centre of
„The new Vienna
Central Station stands
for modernity and
openness. So it also
symbolizes the values ​
of the ÖBB.“
Christian Kern,
CEO of ÖBB Holding AG.
MIPIM 2016 | ImmoFokus Austria
61

Neighborhood Development
A SHORT STORY
ABOUT THE STATION
1900
South Station Vienna. In 1900 the station concourse
was an elegant and prestigious place.
1841
opened the Gloggnitzer station. Four years later,
the symmetrically built Raaber Station got opened
.
Architect Matthias Schönerer built it in a classicist
style and so efficient, so that both buildings could
get use of the depots, sheds and workshops.
1
8
7
0
architect Carl Schumann created and
designed the state railway.
In the monarchy the state railway
was operated from emperor-royal
Railways.
19
56
opened the third Südbahnhof
the doors and tracks .
It was electrified and started
with the winter timetable.
1974
in the prime of the period the Gloggnitzer
station was replaced by the
South Station.
1873
South Station
in Vienna. This is
what the state
railway looked like
in 1873.

2003
the federation, the city of Vienna and ÖBB signed the
Memorandum of Understanding for the redesign.
A year later, an expert method for the Master Plan
Vienna South Station was tendered.
20
the South Station closed
its doors.
The demolition begins...
09
The 9 th of December, the
2012
aboveground part with four
platform tracks is taken in
partial operation.
2015
Since December 2015 the entire rail infrastructure
is ready and the Vienna Central
Station goes into full operations.

Neighborhood Development
The connection to the Schwechat
airport is possible with ICE directly
from the main train station.
In the 21st century, the city has
the meaning of mobility.
The ground of the main train
station is extremely networked
with public roads and bike
paths.
In addition, the public bus takes
guests to Wiener Neustadt, Mattersburg
or Eisenstadt, to Hornstein, Rust
or Mörbisch am See.
(Lines 1155, 1156, 1158) International
buses leave from the terminal to
Prague, Berlin or elsewhere .
ROTARY
DISC
OF
MOBILITY
International trains
run on three TEN-corridors:
TEN 17 runs from Paris via Straßburg,
Stuttgart and Vienna to Bratislava.
TEN 22 connects Athens via Sofia,
Budapest and Vienna with Praque and
Dresden.
TEN 23 creates the north-south of
Venice through Vienna, Brno and
Warsaw to Gdansk.
With Vienna itself the main train
station is docked by the subway line
U1, the tram lines D, O and 18 and
buses 13 A and 69 A.
Regional connections get covered with
high-speed trians in all directions.
Travellers and commuters, for example,
from Mödling, Laa an der Thaya or Sankt
Pölten and Wiener Neustadt go directly
to the main station and can change.
(Lines: S1, S3, S5, S15, S60, S70, S80)
„The main station is a key
project for Vienna and
symbolises the hub function
of the city at the centre of
Europe.“
Michael Häupl,
Major of Wien
Europe.“ After the decision to connect the two
terminus stations (east and south station), the
planning of an entirely new part of town began
in 2009. „Vienna is part of a competitive
environment. The system of terminus stations,
which originated in the monarchy, divided the
urban landscape and created barriers between
districts.“, says Vienna‘s chief planner Thomas
Madreiter. The old stations were torn down,
bridges rotated and the freight station moved
to a new location - all this to facilitate an open
cityscape.
International and national hub
After extensive construction work, the new
main station was part-opened in 2014 before
the structure with its iconic roof design entered
full operation in December 2015. 1000
trains service the stations daily, connecting
destinations such as Naples and Prague,
Paris and Budapest. All major railway lines
intersect here, a connection to the airport
was created while trams, buses and the
underground offer easy travel to the centre
and individual traffic with cars and bicycles
64 ImmoFokus Austria | MIPIM 2016

PERFECT CONNECTIONS.
The main train station is docked with Vienna itself
by the subway line U1, tram lines D ,O and 18 and
buses 13 A and 69 A.
is given ample space. „The new main station
is welcoming and modern, a symbol for the
values of the ÖBB“, says Christian Kern, CEO
of ÖBB Holding AG.
A new part of town for work...
Following this logic, the ÖBB built its new
headquarters opposite the station. As of September
2014, 1.600 staff of the management,
administration, passenger traffic, advertising,
Postbus and Rail Cargo divisions work in
mostly open-space offices.
Close by, the Erste Bank has established the
Erste Campus, where 4.000 employees will
be working from September 2015 and the
adjacent Quartier Belvedere Central is being
developed into 80.000 sqm of office spaces,
two business hotels and smaller commercial
units. Due its excellent transport links, the
area is particularly suited to retail and service
providers, medical practitioners, insurance
companies, administration and banking.
… live and enjoy.
A large part of the site is reserved for residential
units and recreational facilities. Between
Sonnwendgasse, Gudrunstraße and the track
bed of the station, seven different developers
are planning projects, covering a mixture of
requirements and ways of living. For example,
KALLCO is building 2 seven-storey towers
connected by an atrium, the collaborative project
so.vie.so involves future residents in the
planning stages and GESIBA is thinking about
multi-generational living and home-officeapartment
solutions. All in all, 5.000 units for
about 13.000 residents are being constructed
and mistakes made in the past are corrected
before they happen: diversified living spaces
are given preference over tower blocks, the
residential buildings are grouped around 8
hectares of parkland and a neighbouring education
campus.
To sum up: All the positive aspects of urban
development are being utilised to give the area
a long-term boost and re-instate Vienna as an
international transportation hub. As Karl-Johann
Hartig, project coordinator for ÖBB Infrastruktur
Bau AG, puts it, „The urban landscape
is being redefined and the surrounding areas
will be positively influenced by these developments.“
In five or ten years time, this statement
will be measured against reality - one way or
another.
n
„Vienna is part of a
competitive environment.
The system of terminus
stations, which originated
in the monarchy, divided the
urban landscape and created
barriers between districts.“
Thomas Madreiter,
Chief Planner of Vienna
„The urban landscape is
being redefined and the
surrounding areas will be
positively influenced by
these developments.“
Karl-Johann Hartig,
Project Coordinator
ÖBB Infrastruktur Bau AG
MIPIM 2016 | ImmoFokus Austria
65

Neighborhood Development
Urban living
environment
The area surrounding the main station of Vienna exemplifies how urban development
can transform an entire district, given time and careful planning.
by Priska Koiner
66 ImmoFokus Austria | MIPIM 2016

„Cities are not machines,
but rather vibrant and flexible
systems.“
Thomas Madreiter,
Chief Planner, City of Vienna
I
have to deliver a devastating blow: ‚Old‘
Vienna was once new.“ - immortal words
by Karl Kraus. This quote puts a smile
on most Viennese faces, since history
and beauty seem to have entered into a unique
relationship here. It is therefore not surprising
that international critics lament the absence of
a debate regarding the new main station and
urban development, while Vienna itself is currently
missing the link between the history of the
former imperial station and today‘s self-perception.
„The identity has been annihilated“, says
district representative Josef Kaindl and thereby
takes the words out of many people‘s mouths.
A small museum to illustrate the heydays of the
Semmering railway might alleviate the problem,
but the bitter truth is: This is not what the new
station is about.
Impetus for the city and its people
By and large, the new district around the
station is a courageous and sweeping success
of urban development. New, modern and attractive
- those are the keywords which define
this new part of town. A place where living,
working and infrastructure take centre stage.
„The design of public space with a focus on the
people is the essential ingredient“, says head
architect of the Viennese team Alfred Wimmer.
Generous green areas and the axis between
21er Haus and Belvedere pay tribute to
this. But there‘s more to it than quality of life.
Creating ideological and actual connections
A gentrified station quarter attracts more affluent
customers by offering housing, local retail
and mobility, thereby increasing revenue for
local businesses. Conversely, this can lead to
a displacement of established residents and
small-scale businesses, which is why district
representative Kaindl is eager to point out that
„the connection between the pedestrian area
Favoritenstraße and the BahnhofCity has to
be made more noticeable, both ideologically
and in terms of actual signage.“ Otherwise the
intended complementation could turn into
competition.
Openness requires impulses
The potential for complementation and its positive
effects is definitely there. Experts reckon
that the area will generate 13.700 new jobs, a
number that can be handled by local residents.
However, the lower part of the pedestrianised
„The identity has been
annihilated.“
Josef Kaindl,
Representative for the 10th
district
MORE INFORMATION LINKS
The new quarters around the main
station are only one click away:
• www.erstecampus.at
• www.qbc.at
• www.hauptbahnhofcity.wien
• www.sonnwendviertel.at
• www.the-icon-vienna.com
• http://wien-hauptbahnhof.oebb.at
MIPIM 2016 | ImmoFokus Austria
67

Neighborhood Development
SMART
FOR THE
ENVIRON-
MENT
In view of climate change, urban development has to contribute to
the reduction of green house gases.
Vienna, as a model city when it comes to environmental concerns, utilises smart
concepts in urban development. Smart cities stand for intelligent and innovative
solutions as well as a responsible and sustainable use of resources.
These are the guiding principles of the EU initiative „Europe 2020“.
Compared to 1990 green house gas emissions are to be
reduced by 20%
Favoritenstraße remains a weakness; here,
the vitality of the shopping avenue fizzles out,
creating a void that seamlessly joins onto the
area currently occupied by the Bahnorama viewing
platform. „We have achieved openness
in terms of construction, what we now need
are cultural and financial impulses to connect
what has been divided for so long by the bulk
of the former south station.“
Serenity in predefined structures
Time will ease these problems, a view shared
by the chief planner, Thomas Madreiter, „Urban
development is not about details, it is
about creating a rough framework, a structure.
Once this functions, serenity has to be key.“
Cities are not machines, but rather vibrant
and flexible systems. Urban development can
contribute towards the sustainability of a city
by boosting the quality of living and the competitiveness
of local business.
Smart equals intelligent
Energy, mobility, urban development, governance
and data processing are brought together
to provide sustainability for a city and its people.
In the new part of town around the main station,
the implementation of Smart City - something
the City of Vienna has been pursuing for some
years - is being further promoted. The Sonnwend
quarter focuses on ecological standards
which reduce running costs of apartments and
on providing all commodities - from schools to
transportation - within walking distance. The
necessity of owning a car is thus reduced. „Measures
are intelligent when they make life easier“,
says Madreiter in conclusion.
What can a city become? Development provides
the basis for the creation of an open part
of town, where integration is possible. There‘s
only one thing this area will not achieve: being
old - in the words of Karl Kraus.
n
„The design of public
space with a focus on
the people is the
essential ingredient.“
Albert Wimmer,
Architect
68 ImmoFokus Austria | MIPIM 2016

Hot Spot for
the hotel industry
Predatory competition. The new hotels around the main station will intensify competition not least due to their
modern features. „Poor locations or establishments which have been neglected for years will loose out“, says UBM
CEO Karl Bier.
The interview was conducted by Michael Neubauer
Karl Bier,
CEO UBM AG
UBM is Austria‘s leading hotel developer.
Over the last 20 years, the company has
established 42 hotels across Europe. What
is your assessment of the Viennese hotel
market?
Karl Bier: It is excellent. Vienna is attracting
more visitors every year, tourism has been a
growing market. 2014 saw a total of 13,5 million
overnight stays, an increase of 6.4% compared
to 2013. I predict a further increase of 500.000
overnight stays for 2015, notwithstanding
the decline of visitors from Russia. However,
the hotel sector is complaining despite these
stunning figures, something I attribute to the
Viennese mentality. Personally, I am optimistic
concerning the future and expect that Vienna‘s
tourism board will reach their target of 18 million
overnight stays by 2020.
Following the arrival of Star Inn Hotel, Motel
one, Hotel Zeitgeist Vienna and A&O
Hostel Wien at the new quarter, UBM Development
is now building a Novotel and
an Ibis, together offering 575 rooms. Including
historic stock, such as the Prinz Eugen
Hotel and Hotel Daniel, don‘t you think
this will create and oversupply in the area?
> > Including the new construction around the
main station, a growth rate of 15 hotels with
2.800 beds is projected for the capital within
the next few years. The fact that most of this
growth is concentrated in the new station
quarter does not concern me at all. On the
contrary, due the mix of operating types -
from high-end establishments right down to
hostels - the area will soon become a hot spot
of the hospitality industry. Let us not forget
that since the station entered full operation, a
direct connection to the airport with InterCity
and Railjet services at 30 minute intervals is
provided. At travel times between 16 and 18
minutes, this represents a huge advantage
for the site. The new hotels around the main
station will intensify competition not least
due to their modern features. Poor locations
or establishments which have been neglected
for years will loose out. An example for this
trend would be the Park Inn in Klosterneuburg,
which has recently been converted into
a refugee shelter.
UBM‘s business model works on the premise
of selling hotel developments to institutional
investors and investment funds at
a good price. Will this be successful?
> > Karl Bier: In recent years, hotels have developed
from a very specific investment to a
wide asset-class. Between January and September
alone, 60 billion dollars worth of hotels
were traded globally. This constitutes an
increase of 37% compared to the same period
last year and even surpasses the entire 2014
trade (59 billion dollars). I expect this trend
to continue in 2016 with a further increase
of transaction volume for hotels. Europe
will see an additional influx of Asian investors,
who enter the market for reasons of diversification.
Several parties already voiced
interest when construction had just began,
a fact that has much to do with the suitable
operative prerequisites of the station quarter.
I believe we will be selling both hotels before
construction is complete - something UBM
have recently achieved in Munich, Berlin and
Warsaw.
Why this sudden „run“ on hotels?
> > Investors have realised that hotels offer more
economic sustainability than offices. Typical
office buildings in Munich or Frankfurt will
currently achieve around 4,5%, whereas the
yield on hotels - provided they are properly run
- tends more towards 5,5%. This advantage results
from hotels not only offering floor space,
but also the possibility of increasing yields by
offering a wide range of services. Combine a
good concept with the right operator and you
can easily surpass market averages. And when
inflation does eventually rise again, hotels can
adapt more easily than office buildings rented
on short term contracts. n
MIPIM 2016 | ImmoFokus Austria
69

Positions & Opinions
BahnhofCity –
A success story
70 ImmoFokus Austria | MIPIM 2016

Development of a new quarter. Once all residential and commercial buildings
have been completed in 20 years‘ time, the BahnhofCity Hauptbahnhof will be one of
the most highly frequented places in Vienna. This according to ÖBB Infrastruktur AG
managing director Andreas Matthä in an interview with ImmoFokus
conducted by Michael Neubauer
Sources: ÖBB Roman Bönsch
In your view, what has made the new main
station a true success?
Andreas Matthä. The new Vienna main station
is the most crucial station in Austria - once
the new timetable comes into effect, 1.000
fast, regional and suburban train services from
every direction will stop daily at this station. It
constitutes a modular junction within the transeuropean
network and connects national and
international services. Passengers benefit from
faster connections, improved comfort and accessibility
in accordance with latest standards.
A modern and attractive new part of town is
being developed around the new station, with
completion projected for 2020. The whole project
is being regarded as Vienna‘s most important
infrastructural investment measure.
What makes the BahnhofCity work?
> > At the core of the station, a multi-storey shopping
centre, the BahnhofCity, offers 90 gastronomical
and retail outlets. The focus lies on
both national and international customers, catering
to passengers as well as residents living
close by and people working in the vicinity. The
latter two will become more significant with
further development of the area in the coming
years.
Where do you think improvements could be
made?
> > The BahnofCity is now a little over a year old.
Many passengers and visitors to the station are
taking advantage of the shopping possibilities,
however, there is always room for improve-
Andreas Matthä,
ÖBB Infrastruktur AG
Vorstandsdirektor
MIPIM 2016 | ImmoFokus Austria
71

Positions & Opinions
ments. It takes time until a new concept within
a new part of town is fully accepted. A key factor
for this acceptance is a speedy completion of all
building work and the increase of people living
and working here. We are constantly working
on making the BahnhofCity ever more popular,
currently with seasonal offers for the whole family.
One of the centre‘s unique selling points
is the unrivaled accessibility: 11 suburban train
services, one underground line and several
tram and bus services stop at the station. Recently,
we have also introduced free parking for
2 hours for anyone spending 10 euros or more.
December 13 represents a milestone, since the
station entered into full operation on this day,
together with the introduction of the new
timetable. Now trains from all directions stop
at the station, totaling around 1.000 services
per day and consequently increasing customer
frequency. In addition, the entire area is being
developed into a new part of town with 5.000
residential units, 550.000 sqm of office space,
hotels as well as retail, service and gastronomical
outlets. 8 hectares of new parkland will
complete this attractive new mixture of residential
and commercial usage.
„A project of this scale brings equal
measures of challenges and joy.“
Andreas Matthä,
Managing Director, ÖBB Infrastruktur AG
Speaking of commercial use: The new ÖBB
headquarters is situated on the southern
forecourt and offers work space for 1.700
staff. In December 2015, Erste Group Bank AG
began operations in the complex of buildings
known as Erste Campus, while further office
buildings and hotels are currently under construction.
The quarter will continue to grow
in the coming years, which will encourage
ever higher customer frequency for the BahnhofCity.
Where do you see the BahnhofCity in 20
years time?
> > Once all residential and commercial buildings
have been completed in 20 years‘ time,
72 ImmoFokus Austria | MIPIM 2016

THE MAIN STATION IN FULL OPERATION.
Urban development projects continue for another five years..
Sources: APA, ÖBB Luftbildservice
the BahnhofCity Hauptbahnhof will be one
of the most highly frequented places in Vienna.
5.000 new residential units will house
13.000 people and 20.000 will be working in
offices, hotels, the retail, service and gastronomy
sectors.
Could you describe the biggest challenges?
> > A project of this scale brings equal measures
of challenges and joy. The new main station
is in full operation since December 13, the urban
development has another 5 years until it is
completed. Our top priority is to stay within the
projected time and budget plans, something
we have managed to do with the main station.
However, this was only possible due to the superb
cooperation with our partner, the city of
Vienna, the investors and contractors.
Are BahnhofCities better than other shopping
centres?
> > BanhofCities have the advantage of direct
access by rail and other means of public transport.
Also, they are located at traffic junctions
so that customers can shop, dine, meet with
friends without having to rely on their cars.
The ÖBB own large amounts of real estate
in Vienna. Which projects are currently
under construction, which in the planning
stages? More district developments?
> > The major urban development projects in
Vienna are currently the area around the new
main station, north and northwest stations as
well as several smaller projects in the 21st district,
namely the Florasdorf project. By utilising
and developing our real estate, we are creating
25.000 residential units for Vienna in attractive,
central locations.
Vienna is not the only place busy with construction.
Could you give us an overview of
current projects in other parts of Austria?
> > Indeed, urban development is also taking
place around other stations across Austria, currently
in Amstetten, Graz and Feldkirch. n
MIPIM 2016 | ImmoFokus Austria
73

Sonnwendviertel
Towards the sun
Development of a new quarter. The Sonnwend part of town is brand new - not only the buildings, but also the
„quarter“ itself. Its construction makes the erstwhile periphery part of the city.
by Andreas Kremla
The biggest wasteland became the
largest construction site.
During the 90s, rusting freight cars sat on
abandoned tracks. The railway was transporting
less and less freight, the cargo station
had slowly been taken over by haulage
companies that set up shop in improvised
warehouses and container offices with scarcely
a slab of concrete in between. Tourists
searching for the D tram, then the only public
transport connection to the city, lost their way
and tried to escape the maze of barracks. Had
they, inadvertently, got off the train in Skopje,
a city devastated by earthquakes and war,
rather than the cosmopolitan city of Vienna?
2012 saw the end of the unsightly area, when
the biggest excavating machines of several
building contractors began to dig a pit of dimensions
unseen since the end of the second
world war.
74 ImmoFokus Austria | MIPIM 2016

AFFORDABLE HOUSING.
Groundbreaking architecture and affordable
rent are not mutually exclusive in the Sonnwendviertel.
„Until the 2020‘s, close 5.500
residential units will offer space
for over 12.000 people.“
THE SONNWENDVIERTEL
Location: southeast of the main station
Total area: 34 hectares
5.500 residential units planned until 2021:
for approx. 12.000 residents
A big hit, a stones‘ throw from the city centre
„Can you tell me how to get to Alfred Adler Straße?“ The answer is that not
many Viennese residents can. The extension of the Landgutgasse is one
of six new streets between Sonnwendgasse and the tracks of the eastern
railway. The name „Sonnwend Quarter“ first appeared at the turn of the
millennium, when the ÖBB and the City of Vienna decided to make the
wasteland beside the new station a designated urban development site.
Until the 2020‘s, 5.500 residential units will be built here, for up to 12.000
residents. Half of Vienna‘s 8th district, the Josefstadt, or the entirety of
nearby Korneuburg could move straight in. And there would be plenty of
places to work, next door in the brand new office quarter „Quartier Belvedere“
(see also article on page ???). A little over 2.000 people already call
the Sonnwend quarter their home. Young families appreciate the comparatively
low rent, albeit against a backdrop of construction noise - and
they live close to the centre. This is something rather remarkable: instead
of spreading into surrounding areas, the city is growing towards the centre;
on foot, downtown is about 25 minutes away. The demolition of the
freight station removed a barrier between the 10th district and the city.
Here, connections between the periphery and the city are being made,
both from a transport and social viewpoint. Architect Alfred Wimmer
even envisions „a cultural axis of the future“, running from the 21er Haus
across the Belvedere to Karlsplatz.
Start of construction: 2012
Construction to date (Nov 2015): 1.160 units
Completion by 2025
BOUNDARIES
Northeast: Ostbahn (eastern railway)
Northwest: Alfred-Adler-Straße
(extension of Landgutgasse)
South: Gudrunstraße
West: Sonnwendgasse
NEWLY-BUILT STREETS
• Alfred-Adler-Straße
• Antonie-Alt-Gasse
• Artholdgasse
• Hackergasse
• Hlawakgasse
• Marianne-Pollak-Gasse
• Vally-Weigl-Gasse
MIPIM 2016 | ImmoFokus Austria
75

Sonnwendviertel
Smart living with a view
It is a rare gift to have such a large site in a
central location at the disposal of urban development
- and the city takes full advantage of
it. Ideas are being implemented that would
not even have been discussed in years gone
by. Just in time for Christmas 2015, the first
residents were able to move into their SMART
apartments. With a rent cap of € 7,50 per sqm
even young people and families can afford to
live here. The floor plans are tailored to individual
needs and some residents can participate
in the layout of their flats. This marks a turning
point in Vienna‘s housing policy, meaning one
third of all apartments will be „smart“ in the
future. At the quarter‘s heart, 20% of the overall
area will be taken over by the new Helmut-
Zilk-Park and the „Bildungscampus“ will serve
as an intellectual centre, providing space for
kindergartens and schools.
Residents have a say
The concept of „SMART“ living involves the
residents in the final stages of planning. The exemplary
project „so.vie.so“ went so far as to reverse
this process: The developer built what the
Around the main station a city within the city is created.
SO.VIE.SO – ALSO DETERMINED
Projektname: Sonnwendviertel solidarisch
Motto: „solidary and participatory living“
SONNWENDVIERTEL PLOT C.02.04
(Sonnwendgasse / Hackergasse)
Nutzfläche: 9.432 sqm
Wohnungsanzahl: 111
Planungsbeginn: 2009
Fertigstellung: November 2013
Auszeichnungen: Wohnbaupreis 2015 :
Developer:
BWS Gemeinnützige allgemeine Bau-,
Wohn- und Siedlungsgenossenschaft
www.bws.at
Architects:
s&s Architekten, Arch. DI. C. Schindler,
Arch. DI. R. Szedenik
www.schindler-szedenik.at
76 ImmoFokus Austria | MIPIM 2016

WHO BUILDS WHAT?
BUILDING PLOT
C.01
BUILDING PLOT
C.02.01
BUILDING PLOT
C.02.02
BUILDING PLOT
C.02.03
BUILDING PLOT
C.02.04 „SO.VIE.SO“
BUILDING PLOT
C.03.01
BUILDING PLOT
C.03.02
Projectname:
„Sonnwendviertel“
Developer:
Win4Wien
Architects:
Kada, Riepl/Kaufmann/Bammer,
Vlay/
Streeruwitz
370 subsidized
rented flats, with a
purchase optiom
Projectname:
„Sonnwend 1“
Developer:
KALLCO BAUTRÄGER
GmbH
73 rented flats, 20
Mini-Lofts (Garconniere),
Büroräume
Projectname:
„PLATFORM L –
Lebensstationen“
Developer:
ÖSW - Österreichisches
Siedlungswerk
Gemeinnützige
Wohnungsaktiengesellschaft
Architects:
Delugan Meissl Associated
Architects
Developer:
VOLKSBAU Wohnund
Siedlungsgenossenschaft
reg.
Gen.m.b.H.
Architect:
Hubert Rieß
98 subsidized rented
flats
Developer:
BWS Gemeinnützige
allgemeine Bau-,
Wohn- und Siedlungsgenossenschaft
Architekcts:
s&s architects
111 subsidized rented
flats, with a purchase
optiom
Developer:
GESIBA Gemeinnützige
Siedlungs- und
Bauaktiengesellschaft
GSG Gesellschaft für
Stadtentwicklung
und Stadterneuerung
250 subsidized
rented flats, with a
purchase optiom
Developer:
SOZIALBAU Gemeinnützige
Wohnungsaktiengesellschaft
84 subsidized rented
flats
50 subsidized
condominiums
16 geförderte Heimplätze
92 subsidized rented
flats, 2 Geschäftslokale
(Details from Developer)
„The area has received a boost due
to projects like ours.“
Robert Pfeffer,
BWS Gemeinnützige allgemeine Bau-, Wohn- und Siedlungsgenossenschaft (developer)
future tenants had asked for. Both individual
spaces and public areas were co-designed by the
residents, as Robert Pfeffer, contractor as well as
sales- and marketing manager, explains, „We
had originally planned for 124 units, but after
consultation with the tenants that number was
reduced to 111.“ This resulted in a generous average
size of 85 sqm and participation stretched
even further, encompassing social interaction
and usage agreements. How can a developer
afford such a vast number of „clients“? „To date,
everything works just fine“, says Robert Pfeffer,
„not a single tenant has left since first moving in
two years ago“. The higher planning costs will
be balanced by keeping turnover expenses low.
The face of a new quarter
The contractor makes out positive knock-on
effects for the quarter itself: „The area has
received a boost due to projects like ours. This
not an anonymous place - people want to
move here.“ The Sonnwendgasse has had its
name for a long time (it dates back to when
people started here on their way to celebrate
the summer solstice at Wienerberg). It may
still be a little dusty and the residents will
need to be patient with the construction noise
for a few more years - but here, Vienna is
transforming itself from what was a barren
wasteland to a bright, attractive part of town
in the south.
n
MIPIM 2016 | ImmoFokus Austria
77

OUTSIDE.
ÖBB Headquarter
ÖBB headquarters rising gracefully beside the tracks,
its contours and textures reminiscent of a high speed train.
A New World of Work
At ÖBB headquarters a new world of work is being shaped. The main station provides a unique working
environment, a symbioses between workforce and technology, where a 2,5 kilometre long curtain divides collaboration
and retreat.
by Priska Koiner
78 ImmoFokus Austria | MIPIM 2016

„The dynamic, curved super-form and the smooth,
rounded surfaces evoke the aesthetic of modern high
speed trains.“
Christoph Zechner,
Architect
Sources: Markus Mansi
T
he elevator programming had to be
adjusted to account for the terrace
on the 18th floor,“ says Martin Lesjak.
The renowned architect and designer
from Graz teamed up with ÖBB project managers
to develop the new working environment at
headquarters, directly next to the main station.
The 18th floor houses a cafeteria, complete with
a terrace - a feature well received by members
of staff. Since October 2014, 1.600 staff of the
management, administration, passenger traffic,
advertising, Postbus and Rail Cargo divisions
carry out their duties in this new world of work.
The s-shaped, glass-clad building rises in a graceful
curve towards the forecourt and allows
for a stunning view over the steel roof structure
of the platforms. The 88-metre-high tower has
become a landmark, not least because it will
remain the highest building in this new part of
town. „The dynamic, curved super-form and
the smooth, rounded surfaces evoke the aesthetic
of modern high speed trains,“ architect
Walter Zechner explains. The architectural
design by Vienna-based architects Zechner &
Zechner focusses on identity formation and
energy efficiency.
The double box facade provides optimum insulation.
District heating and cooling supply
the building and waste heat is utilised through
activated storage masses, while LED lighting
helps to lower overall energy consumption.
These measures resulted in the building
receiving the ÖGNI Golden Sustainability
Certificate. The reception area is of generous
dimensions and a central supply system allows
for greater freedom of floor plans above. These
were implemented by INNOCAD, an interior
design group headed by Martin Lesjak.
A tailor-made concept for ÖBB
In cooperation with ÖBB, INNOCAD developed
a flexible and efficient open-space concept.
Martin Lesjak believes that „linking people,
spaces and technology works by taking into
account corporate values, behaviour and the
requirements of employees.“ Initially, this
process met with resistance. An unsurprising
fact considering that the Austrian National
Railways are a long-standing company, based
on hierarchic principles, its employees used to
working in their own cubicles. „A democratic
process was initiated that managed to convince
many employees. The management, first
and foremost CEO Christian Kern, were fully
committed to the idea from the beginning and
the professional support of this transition was
vital“, Lesjak looks back.
Group offices replace open spaces
The New World of Work at ÖBB distinguishes
between collaborative areas for meetings and
conferences in group offices, which offer room
ÖBB HEADQUARTERS
– KEY DATA
• 60.000 sqm
• 1.600 members of staff
• 23 floors
• 2,5 km textile curtain
• Construction cost: 64,7m. Euro
• Architectus: Zechner & Zechner
• Interior design: Innocad
• Wind power planning: weatherpark
• Static engineer: Thomas Lorenz ZT
• Construction period: 2009 – 2014
MIPIM 2016 | ImmoFokus Austria
79

ÖBB Headquarter
INSIDE.
2,5 km of fabric divides areas and gives the open
spaces structure.
„Linking people, spaces and technology
works by taking into account corporate
values, behaviour and the requirements
of employees.“
Martin Lesjak,
INNOCAD
„Linking people,
spaces and technology
works by taking
into account corporate
values, behaviour and
the requirements of
employees.“
Martin Lesjak,
INNOCAD
for between 10 and 12 members of staff. „An
entirely open-plan office space, the likes of
which we realised for Volksbank South Tyrol
or the Saudi-Arabian Department of Trade and
Industry, would not have suited the corporate
structure of the ÖBB“, says Lesjak. „Finding
the right balance between open, communicative
areas and possibilities to withdraw is key
in each individual case.“ And the plan has
worked. Every floor offers a communal area
with tea kitchen and photocopiers. There are
also spaces for special applications, like the
conference centre on the 3rd floor, the aforementioned
cafeteria on 18th floor and the Sky
Lounge on the 23rd floor.
A happy workforce
Open-space concepts are a global trend. Modern
workflow has become more flexible,
mobile and digital due to the wide-spread
use of communication technology, tablets
and smart phones. This has increased the demand
for meeting areas, whereas traditional
cubical offices often stay empty due to flexible
working hours. Studies have shown that openspace
environments have a positive effect on
overall company performance, lowering costs
by 20-30%, increasing employee satisfaction
by 10-20% and boosting productivity by between
5-15%. These figures were calculated by
Michael Bartz, head of the New World of Work
research centre at IMC technical college in
Krems.
Curtains as eye-catchers and room dividers
Within ÖBB headquarters, partition walls have
been avoided wherever possible. Instead, a
sound-absorbing, fire-retardant curtain divi-
80 ImmoFokus Austria | MIPIM 2016

INSIDE.
The imagery covers a wide spectrum - from informal
components to travel impressions.
Sources: Paul Ott
des the different areas. „A textile divider allows
for easy control of openness and seclusion,
very important form a psychological point of
view,“ Lesjak explains. An added bonus of the
curtain is its identity-forming function. The fabric
has been printed with images of Austrian
cities, mountains and landscapes. Signage and
emergency exits little impede this textile journey
through the country.
A building that takes into consideration customary
practises, corporate values and the philosophy
of the ÖBB has thus been created, integrating
a modern work environment. Several
national and international accolades endorse
this new concept.
n
AWARDS
• ÖGNI Golden Sustainability Certificate
• 2015 Austrian FM Award
• „Work Environment Of The Year“ 2015
• 2015 Leaf Award: International Interior Design Award of the Year (following Microsoft
Austria 2013)
• 2015 MakeItWork Award for Sky Lobby, Category: Corporate Color Palette
• 2015 International Architecture Award: 1. Prize, Category: Corporate Interior Built
• 2016: Best Architects 16, Category: Interior Construction
MIPIM 2016 | ImmoFokus Austria
81

Wien Hauptbahnhof BahnhofCity
Shopping beneath
the tracks
Refine and enhance. The BahnhofCity brought 20.000 sqm of retail space to a prime location of the city.
Customer frequency and overall success, however, fell short of expectations. Time for a little readjustment.
by Priska Koiner
82 ImmoFokus Austria | MIPIM 2016

HAUPTBAHNHOF CITY.
Two underground floors are home to 90 retail and
gastronomical outlets at HauptbahnhofCity –
efforts to establish the station as a shopping
centre are ongoing.
T
he
words „Vienna Main Station“ are
emblazoned upon the glass frontage of
the entrance area. And of course there is
a station here – but there‘s so much more.
Since October 2014, the station building is home
to the BahnhofCity. A mixture of electrical
retailers, convenience stores, jewellers and gastronomical
outlets cover an area the size of two
football pitches. The shopping centre at the station
houses 90 different businesses and expectations
as to customer frequency and spending
power are high, especially if the people who will
shortly live and work in the vicinity are added to
the calculation. But will it all pay off?
Getting to know a new location takes time
From an outside point of view, all the ingredients
for a successful shopping centre have
been implemented. An international transport
hub with 90.000 daily passengers, a mix of
businesses offering everything from bread and
milk, travel provisions, banking services and car
rentals. 600 parking spaces just one floor below,
while the platforms are directly overhead. Everything
is close, public transport links excellent,
but the shop proprietors are grumbling over a
lack of customers. „We are currently still in the
market introduction phase, which can last between
one and three years from opening“, says
ÖBB holding spokesman Michael Braun.
Places to work and live
Construction of the area surrounding the station
- the same size Vienna‘s 8th district - is not
complete. The buildings are being equipped
with further residential units and work spaces.
In addition, the BahnhofCity is an entirely
BAHNHOFCITY IN NUMBERS
• 20.000 sqm retail space
• 90 shops and restaurants
• launched in October 2014
• 600 parking spaces
• 2 hours free parking
extended open hours until 9.00 pm and
partly on Sundays
MIPIM 2016 | ImmoFokus Austria
83

Vienna Hauptbahnhof BahnhofCity
TURNING PASSENGERS INTO CUSTOMERS.
More than 90.000 people pass through each day
on their way to and from trains - businesses need
to be suited to the needs of travellers, which in
turn leads to them becoming customers.
GETTING TO KNOW A NEW LOCATION TAKES TIME –
AND EFFORT
In order to thrive, the businesses at the BahnhofCity require the
additional spending power of future residents besides current
passenger frequency.
new new shopping site, which has not yet been adapted
to, unlike major retail hotspots such as the Mariahilfer
Straße or downtown. Both these facts are essential,
since construction equipment is still in operation and
developers are busy over ideas in their offices. 20.000
residents and 5.000 workers will be able to satisfy their
shopping and traveling needs once the complex is completed.
Until that point, sometime in 2018, the BahnhofCity
will continue to receive support from both the
centre management ECE and the ÖBB Holding.
Turning frequency into revenue with supplementary
offers
„We are utilising a string of marketing tools, from public
viewing areas during the Eurovision Song Contest to
Christmas specials for the entire family to widen the
BahnhofCity‘s appeal as a shopping destination. This
has resulted in increased customer frequency, from an
initial 35.000 persons to between 70.000 and 90.000
today“, explains holding spokesman Braun. The measures
are working, as attested by the consulting firm
RegioPlan in a study conducted in November 2015. The
results showed that increased frequency does not neces-
WHAT ARE THE SERVICES AND ADDITIONAL
OFFERS OF THE FUTURE?
The consulting firm RegioPlan specialises in site-specific retail measures.
Based in Vienna and Münster, the company has been developing new ways
of trading, sales channels and omni-channeling strategies since 1984.
Their latest study (in November 2015) included measures that contribute
to the future success of shopping centers. Customers voted for the following
measures:
100 %: Pop-Up areas, loyalty card, market stalls
82 %: dedicated centre app, fast food court, aroma concept, pick-up point
67 %: Concierge Services
60 %: online Shop, CoWorking spaces and laptionstations
17 %: centre-wide app
www.regioplan.eu
84 ImmoFokus Austria | MIPIM 2016

HIGH QUALITY OF LIFE AND STAY.
A mix of gastronomical outlets and local suppliers attracts residents from
surrounding districts.
sarily lead to higher sales. Effective measures
to turn passers-by into customers include
seasonal and fashion-related events as well
as offers involving children, while offers from
the health, sports and design segments do not
yield higher revenue. Thus, carefully selected
offers can animate buyers and increase overall
attractiveness. A centre-wide app proved to
have the lowest success rate, whereas pop-up
areas, loyalty cards and market stalls play a
vital role in this respect.
„We are currently still in the
market introduction phase.“
Michael Braun,
ÖBB holding spokesman
Steady refinement and honing
The secret to success lies in finding the „best
possible compromise between the demands of a
station and the requirements of a shopping centre“,
according to spokesman Braun. An ongoing
process of refining and honing is key here. A
milestone was reached with the station entering
full operation on December 13, 2015. Additional
measures to create a „sense of well-being“, in
the words of Braun, include art installations and
comfortable sitting areas in the public areas.
The medium term goal lies in the creation of a
popular venue, a favourite haunt that doubles
up as a national and international transport
hub. „The BahnhofCity will become anchored
in the lives of Viennese people, the counterpoint
of a new part of town, offering a high
quality of life and stay“, says spokesman Braun,
looking to the future. After all, the site is an attractive
alternative to green field developments,
which are often only accessible by car. n
MIPIM 2016 | ImmoFokus Austria
85

Advertorial
Credit: istockphoto
Austria‘s largest hall
of residence
Student living. S+B Gruppe AG and Investa Immobiliengruppe are building Austria‘s micro- and
service apartment house for students.
T
ogether the private Viennese developer
and the German real estate
group are investing in the development
of the property Nordbahnstraße 3
at Praterstern. The coming year will see the start
of construction of Austria‘s largest hall of residence,
made up of 700 apartments at a cost of
90 million Euro.
Vienna is practically unrivalled for its reputation
of being a beautiful, green urban oasis - it
has just been ranked in first place for quality
of living worldwide for the 6th year running.
Such living conditions attract predominantly
young university students - Vienna is the the
world‘s biggest German-speaking student
city and with its 200.000 students the largest
college town in Central Europe. The second
district alone is currently home to 30.000
students, 25% of whom have an international
background in accordance with the quota
system.
The area surrounding the Prater and Messe
Wien has become a popular centre of education,
not least due to the recent relocation of
the University of Economics. The proximity
to downtown, excellent public transport links
and solid infrastructure make the area around
Praterstern particularly attractive.
86 ImmoFokus Austria | MIPIM 2016

Construction of 700
modern micro- and service
apartments for students
excellent transport links at
the hub station Praterstern
Cost: 90m. Euro
Credit: istockphoto
The connection to two major underground
lines, the U1 and the „university line“ U2 offers
fast access to almost all of the city‘s notable educational
institutions - the Main University at
Schottentor and the University of Technology
are as easily reached as the direct neighbours
- the University of Economics, Webster University
Vienna, Sigmund Freud Private University
and the Technical College of the bfi Wien.
S+B GRUPPE AG
For over 25 years, S+B Gruppe AG - an international
project developer based in Vienna,
Prague, Bucharest and Warsaw - has realised
complex projects, acting as an investor
and general contractor across Europe. The
team around building contractor Reinhard
Schertler from Vorarlberg and Viennese
architect Alfred Michael Beck specialises in
the planning, construction, controlling and
marketing of high-quality buildings. Several
major projects are currently under construction
in central and eastern Europe. With
an overall investment in excess of 3 billion
Euro, real estate with more than 1.000.000
sqm floor space has been constructed.
www.sb-gruppe.at
The property on Nordbahnstraße is part of
one of the biggest inner-city development
sites - this new part of town is to become a
place to live and work for several thousand
people within the next years. The symbioses
between halls of residence and living space
will provide a soft transition from student
life to entering the job market.
Wolfdieter Jarisch, managing director of
S+B Gruppe AG says, „The area around
the Prater is especially popular with young
people due to its modern infrastructure,
universities, restaurants, bars, recreation
areas and gyms. This is why we are very
proud to be building Austria‘s largest hall of
residence and set new standards for student
living at Nordbahnstraße. The property
will soon be home to over 700 students in
an up-and-coming area of Vienna. We are
thrilled to have secured this ideal location
for students.“
And Klaus Laminet, partner at Investa Holding
GmbH adds, „We are very excited to
expand into Austria with our activities of
constructing micro- and service apartments
for students. S+B Gruppe AG have been our
valued partners in a variety of projects for
many years.“
n
INVESTA
IMMOBILIENGRUPPE
Investa Immobiliengruppe has been developing
real estate in Germany for over
40 years. Outstandingly successful projects
and extensive experience in conception,
marketing and construction of highquality
office buildings, hotels as well as
freehold residential units have established
Investa as the first choice for developments
within Germany. Since its foundation
in 1972, the company has implemented
new construction and existing properties
with an investment of over 4 billion Euro.
Investa Asset Management Ltd offers
active Asset Management of properties,
focussing on objects with a high net value
or restructuring need. Investa Capital Management
develops investment products
for institutional investors and implements
these. Through its leading provider of
data processing facilities, e-shelter, Investa
Immobiliengruppe is able to offer
prolific know-how regarding construction
and operation of real estate with complex
technical infrastructure.
www.investa.de
MIPIM 2016 | ImmoFokus Austria
87

Erste Campus
The first on
Campus
From 2016, the Erste Campus will become the new headquarters of Erste Group Bank AG.
The 20 different locations currently under operation will then be combined at the Erste Campus.
by Andreas Kremla
H
ow does a native-born Viennese
person feel when they, after
several years away, come to town
and want to take a trip with the
Southern Railway? They take the D-tram, pass
the Belvedere, arrive at the Gürtel and - realise
that the South Station is no longer there! The
building, as damned by Ingeborg Bachmann,
has vanished, replaced by a complex of buildings
made of glass and characteristic wooden frames.
Our fictitious traveller spots a blue-and-red
logo that seems familiar: Erste Bank, or
rather, Erste Group now resides next to the
main station.
A headquarter fit for the corporate group
This is the nerve centre of a banking group
which employs 46.000 staff in 8 countries.
4.000 men and women will command this
workforce from within the new Erste Campus.
88 ImmoFokus Austria | MIPIM 2016

ERSTE CAMPUS PANORAMA.
Erste makes the most of its name: It is the first Austrian banking group to combine its
strengths at a central location.
Sources: Erste Group Bank AG Toni Rappersberger
Something they have already been doing, albeit
from 20 different locations across Vienna.
The synergy effects of this direct interaction
are self-explanatory. Time spent travelling
to and from meetings can be reduced significantly
and the building itself will reduce costs
too: Before construction was completed, it
was pre-certified by ÖGNI for its sustainable
measure (see box). As a positive side effect,
this flagship building offers the unique chance
to make quite an impression upon the world
around it. Andreas Treichl, Director General
of Erste Group, explains, „The architecture of
the Campus mirrors our self-conception as
a service provider: Transparent, vibrant and
welcoming.“
Architecture for working
The professed goal of architects Dieter Henke
and Marta Schreieck was to ensure that each
and every member of staff enjoys working here.
The curved elegance of the building conveys a
welcoming openness, while a feeling of transparency
and community is achieved by the fact
that almost every part of the buildings can be
seen from any given point. Open-plan offices
create a sense of immediate connection, even
though they might not be everybody‘s favourite
concept. This is why the open-plan idea is
being suited to specific needs, with areas for
on-the-go meetings, recreational and green
spaces.
To catch the devil in the detail, a mock campus
was built at the former location Geiselbergstraße,
equipped with individual work stations
and running for several months. Information
gathered there will be used to fine-tune the
Campus now. The four parts of the complex
are flexible, making changes to designated
work areas possible without major construction
work.
CAMPUS FACTS AND FIGURES
Contracting party: Erste Group Bank AG
Project developer: Erste Group Immorent AG
Architects:
Henke Schreieck Architekten ZT GmbH
Work stations: rund 4.000
Total area: 2,5 ha
Aerial gross floor space: 117.000m²
Total gross floor space: 166.000 m²
Parking spaces: ca. 600
Distance to city centre: 2,5km
www.erstecampus.at
MIPIM 2016 | ImmoFokus Austria
89

Erste Campus
ERSTE CAMPUS VIEWED FROM THE GÜRTEL.
A new vista from the southern Gürtel: The Erste Campus makes the area of
the former Southern Station completely its own.
AERIAL VIEW.
The Erste from above: the campus allows
unimpeded views along every axis.
THE ERSTE CAMPUS IN NUMBERS
(as of September 2015; Source: Erste Group)
• 16,2 m. customers
• 46.000 employees
• 2.700 local branches in 7 countries
• EUR 487,2 million net profit
• EUR 197,5 billion balance sheet total
• EUR 14,0 billion total capital
• EUR 1,5 billion operating income
• 11,6% core capital ratio (currently Basel 3)
• Ranked under TOP 3 businesses in the core markets
of Austria, Croatia, Romania, Slovakia, Czech Republic,
Hungary
www.erstegroup.com
Part of its surroundings
The new address „Am Belvedere 1“ is suggestive of a certain noblesse
within the working-class district of Favoriten.
In fact, Prinz Eugene‘s baroque palace is only 10 minutes away on foot,
the city centre about half an hour. The Erste Group attaches great importance
to the social integration of the building, as Treichl stresses, „We
did not want office towers in an area that becomes deserted after 5.00
pm. The ground floor with its restaurants and cafés is open to the public.
This building, our company wants to involve the people that live or pass
by here. It‘s all about integration, not exclusion.“
Open Axes
With the relocation to a Campus that merges all previous headquarters
into one, Erste Group is a trail-blazer among the Austrian banks. In contrast
to other companies that effect such a move, Erste is keen to retain a
link to its roots. The historic main branch on the Wiener Graben, which
acted as headquarters until recently, will continue to serve customers and
90 ImmoFokus Austria | MIPIM 2016

ACADE.
Glass frontage, yes - chilly atmosphere no: Wooden
frames enliven the glass facade.
ERSTE CAMPUS. An atmosphere of security
pervades headquarters. The number of people
working here matches that of a small town -
yet every vantage point allows a view of all the
buildings.
A sense of welcoming openness is created by the
curved architecture at the Erste Campus..
ECOLOGICAL ECONOMICS: THE CAMPUS AND THE ENVIRONMENT
Sources: Erste Group Bank AG Toni Rappersberger
represent a proud history of service. Historic Vienna
is also visible at the new Campus. The planners
have carefully positioned the buildings
without obstructing the visual axes towards the
city. And that‘s not all: The open-plan ground
floor allowed for the creation of passages from
the Belvedere through to the new main station
- no longer a terminus, but a transport hub open
in all directions. This is where our exiled Viennese
traveller, having explored the Quartier
Belvedere, will turn into one of 160.000 passengers
that pass through the station daily.
The Erste Campus conveys clear messages: The
pooling of resources signals a stringent strategy,
the glass facades represent transparency
and the proximity to the new station implies a
sense of openness in all directions. n
The Erste Campus was pre-certified by the ÖGNI (Austrian Sustainable Building Council)
before completion and received the highest score, a „DGNB Gold“. The final certification will
follow when constructions ends.
The following sustainability measure were implemented at the new headquarters:
• Thermal mass activation for heating and cooling supplied by geothermal pales
• double facade with ‚smart‘ exterior sun screens and opening windows
• temperature reduction at night
• energy efficient LED lighting
• energy-recovering elevator system
• plans to reduce annual primary energy requirements
ÖGNI Ranking
• Object evaluation: 81,10%
• Ecological quality: 78,00%
• Economiclly quality: 92,00%
• Socio-cultural and functional
quality: 83,00%
• Technical Quality: 69,10%
• Process quality: 86,70%
• location evaluation: 90,20%
MIPIM 2016 | ImmoFokus Austria
91

QBC – QUARTIER BELVEDERE CENTRAL.
The six construction units of Quartier Belvedere Central (BQC) will house office and retail spaces in two thirds,
while in the remaining part two Accor hotels are under construction.
A quarter within a quarter
– and an arcade
The Quartier Belvedere Central – or QBC for short – is to be a vibrant part on the grounds of the new
main station. The mixture of residential units, offices, retail and two hotels is unified by an architectural trick:
an arcade stretching over the entire structure.
by Priska Koiner
92 ImmoFokus Austria | MIPIM 2016

MIXED USED.
A living- and working environment is
being created at the centre of QBC.
Sources: 2015 ZOOM VP_Strauss QBC, UBM
K
arl Kraus put it this way, „My demands
of the city I live in: Paved roads,
clean streets, house keys, heating,
hot running water. I am homely
enough for the rest.“ The demands of the great
Austrian writer from the turn of the 19th century
may elicit no more than a quiet smile from modern
real estate developers. However, there is
still truth to be found in his words. A place worth
living in may not need much, but should boast
essentials like infrastructure, living space and
energy. All of these ingredients can be found in
the emerging Quartier Belvedere Central (QBC).
And there‘s more. Additional components such
as location, transport links and local suppliers
complete the picture.
A lively mix of uses on 80.000 sqm
With the QBC, the UBM subsidiary Strauss
& Partner Development is building a quarter
within a quarter. Six construction units are
being built on an area covering 25.000 sqm.
They will provide spaces for office and retail,
hotel and residential units on 130.000 sqm
of floor space. West of the Erste Campus, between
the main station and Wiedner Gürtel,
two hotels, 140 apartments as well as officeand
retail spaces to the extent of 80.000 sqm
are being built, to be completed by 2018. The
company is investing some 300 million Euros
into the property. Renowned architectural
firms such as Neumann + Partner, Jabornegg
& Pallfy, Rüdiger Lainer + Partner and Behnisch
Architects have undertaken the project.
Stable returns make Vienna attractive
Construction started on two hotels in 2015
with a projected completion date in 2016.
One construction field will house a new
3-star hotel (Ibis) and a 4-star establishment
(Novotel), both under the auspices of the
AccorHotel Group. A total of 577 rooms and
1.800 sqm of event areas, including ball room
and conference facilities, will be available to
guests and businesses. Claus Stadler believes
that the wait for customers will not be along
one, because Vienna is a „growing and attractive
metropolis“ with this location adding
further appeal. Even though 2.500 beds will
become available at the QBC, but also at Motel
One and Star Inns, within the next few years
- the city remains of interest to investors.
And how? By offering returns which may
not be outstanding, but still solid according
to Martin Schaffer, managing partner of the
hospitality consulting firm MRP.
• 25.000 sqm property size
• 6 construction units
• 130.000 sqm total floor area
FAKTEN QBC
• 80.000 sqm office and retail space
• 26.000 sqm hotel space
• 24.000 sqm residential units
• 700 parking spaces
• 60 m highest building
Project development: STRAUSS & PARTNER
Development Ltd.
Architects: Neumann + Partner, Jabornegg &
Palffy Architects, Rüdiger Lainer + Partner,
Behnisch Architects
MIPIM 2016 | ImmoFokus Austria
93

QBC – Quartier Belvedere Center
TOP-LOCATIONS.
Connecting pathways towards the main station, the Erste Campus towards
the east and the area of the Signa Holding project are of primary importance.
The location „Main Station“ is becoming more
attractive by the month and is being recognised
by the market. Big companies like ÖBB
and Erste Group are relocating their headquarters
to this new part of town. The first residents
are moving into their apartments, around
3.000 having settled there to date. The area is
stirring into life.
Smart connections
If all goes to plan, the QBC will be completed by
2018 and the ensemble of buildings, situated
between Wiedner Gürtel, Karl-Popper-Straße,
Canettistraße and Gertrude-Fröhlich-Sandner-
Straße, will provide both a sense of community
and permeability. Particular attention is being
paid to path optimisation throughout the buildings
so that the living- and working environment
within the gastronomical and retail outlets
can begin to thrive. Pedestrian walkways
will lead towards the main station, the Erste
Campus and the project of the Signa Holding.
An arcade stretching over all six structures will
act as both a connecting element and visual
statement.
The building permit for the residential tower
is still pending due to the fact that the original
plan designated it as office space. „The great
thing about urban development is its flexibility“,
says Claus Stadler. If all goes according
to plan, then this project will not become a
barrier, but a linking element within a grand
development.
n
94 ImmoFokus Austria | MIPIM 2016

5 questions for
Claus Stadler
Claus Stadler, COO of UBM Development AG and managing director of STRAUSS & PARTNER
Development Ltd., talks about potential, important decisions and challenges regarding the QBC.
The interview was conducted by Priska Koiner
Claus Stadler,
COO of UBM Development AG
and managing director Strauss &
Partner Development Ltd.,
is developing an attractive project
for international investors.
Does Vienna really need the amount of floor
space that is currently being developed at
QBC and around the main station?
Claus Stadler: Yes, absolutely. Vienna is a fastgrowing
and attractive metropolis. The projected
influx of 15.000 people within the next
years necessitates the provision of living space
and jobs, while steadily increasing city tourism
demands more hotels. Due to this growth, Vienna
will continue to require modern, flexible
real estate that utilises urban potential by its
proximity to the city centre and good transport
links.
Both the Ibis and Novotel hotels at QBC
are nearing completion. What made you
decide against the luxury segment here?
> > On the one hand, Vienna has plenty of hotels
in the luxury segment already and on the
other, the location at the main station requires
overnight accommodation for business customers.
I expect the two QBC hotels to achieve an
above-average occupancy, not least because of
the excellent transport links to the city centre.
enjoy vibrant surroundings, even at night. The
design of the open spaces is critical in connection
with the area‘s attractiveness and suitability
for everyday use. It‘s for the developers to
ensure the right blend between usability and
quality.
Is there still sufficient interest for developers
to work in Vienna, seeing that you can
hardly turn a corner without running into a
construction site?
> > The demand of international investors remains
strong. Particularly in the case of a development
hotspot like the Quartier Belvedere
this is true of both hospitality and office spaces.
Once we receive the building permission for
the residential tower, sometime before the
summer of 2016, we will begin construction
straight away. The interest in these apartments
is already exceeding our expectations. n
Aren‘t the service providers around the
main station cannibalising themselves in
the process?
> > In Munich there are 80 hotels around the station
and they are doing just fine. We think that
the connection to the station and proximity of
downtown are solid arguments in favour of the
location at QBC.
What about the future of the area
surrounding the main station?
> > We are committed to developing a part of
town where people can work, live, linger and
FURTHER LINKS
• www.qbc.at
• www.ubm.at
• www.strauss-partner.com
• www.neumannundpartner.com
• www.jabornegg-palffy.at
• www.lainer.at
• www.behnisch.com
MIPIM 2016 | ImmoFokus Austria
95

UBM
We are UBM
„Reaching European dimensions“
Through the merger of UBM and Strauss
& Partner last spring, a project developer
of European dimensions was formed. The
commercial registration on February 18, 2015
green-lit the company merger of PIAG Immobilien
AG with UBM real estate development
AG. Via a downstream merger the PIAG,
which included the non-operational assets of
PORR and Strauss & Partner, was integrated
within UBM. All PAIG shares were converted
into UBM shares at a rate of 10 to 3,701098.
The transaction was concluded with the renaming
of UBM real estate development AG to
UBM Development AG.
A long history
The joint-stock company, founded in 1873,
remains in de facto operation. This constitutes
a competitive advantage, a long history
suggesting stability. UBM has an established
reputation with both its investors and commercial
partners. Diligence and sustainability
combine with architectural integrity
and high-quality construction to define the
company. Few companies can look back on
such long-standing tradition, particularly in
the real estate sector. Also remarkable: UBM
was the only development company that
managed to stay in the black following the
Subprime crisis and the resulting recession.
A true win-win situation
„This transaction“, says UBM-CEO Karl Bier,
„was a win-win deal - the PIAG complements
UBM perfectly. By expanding the business
volume we were able to create a development
company of European dimensions. We have
increased the level of awareness, strengthened
our market position and improved access
to the capital market.“ Bier expects the merger
and the resulting capital increase last April to
boost growth. By the third quarter, the total
return (this includes revenue from property
sales, rental income, hotel earnings as well
as outstanding construction work, deliveries
and services to third parties) had increased
by 38,3% from 257,4 million Euro to 356,1 million
Euro. In 2014, both companies together
grossed a total of 480 million Euros (the figure
represents net value and includes revenue
from property sales, rental income, hotel earnings
and outstanding construction work).
The expansion of business volume necessitated
an increase of UBM Development board
members from 3 to 5. New arrivals include
Michael Wurzinger, managing assets and
transactions, and Claus Stadler, responsible for
technical agendas and development in Austria
and Southeastern Europe. Karl Bier remains in
his position of CEO, Heribert Smolé CFO and
Martin Löcker continues to look after technical
agendas and development in Germany, Poland,
the Czech Republic and Western Europe.
A clear profile
UBM Development will concentrate on property
development as a pure player, retaining the
high degree of market diversification and focus
on asset-class hotels, offices and residential applications.
The core business activities will stay
with the domestic markets of Germany, Austria
and Poland and developments in the Czech Republic,
the Netherlands, Switzerland and France
will continue to aid diversification. n
96 ImmoFokus Austria | MIPIM 2016

The new way to live
O
ne of the most ambitious urban
developments is currently under
construction in the vicinity of the
new main station. At the centre
of the new quarter, the UBM subsidiary STRAUSS
& PARTNER Development Ltd. is building the
Quartier Belvedere Central, which will combine
living and working in unique new ways over a
total floor area of 130.000 sqm.
LIVING AT QBC - an urban way of life on the
highest level
Right at the centre of the QBC complex, a multifarious
living environment named LIVING
AT QBC is being created. The sophisticated and
sustainable building will house 135 privately
financed freehold apartments, which boast
optimised floor plans, unusually high ceilings
(between 2,70 m and 2,85 m) as well as largescale
glazing and open spaces. The breathtaking
view across Vienna is a special highlight,
part of the package in the penthouse flats of
the 60m tower.
Diversity, great transport links, close to downtown
Thanks to its location, future residents of
QBC will benefit from matchless national
and international transport links, be it the
airport, motorways or the main station. Why
not take the train to Venice on the weekend!
In addition, a range of shopping facilities in
the new part of town will be at the residents‘
fingertips. The culinary variety of countless
gastronomical outlets will further enhance
this new lifestyle, as will public parks, health
and leisure facilities, educational institutions
and cultural offerings at the nearby Belvedere
Palace or the contemporary art museum
21er Haus.
In harmony with nature
The QBC demonstrates in a striking fashion
that nature and urbanisation are not mutually
exclusive. The adjacent Belvedere Gardens,
Schweizer Garten park and the newly built,
8 hectare Helmut-Zilk-Park will serve as the
local recreation areas for LIVING AT QBC.
The city has also recognised the need for a
• n 135 privately financed freehold units
• n Apartment sizes between:
36 sqm - 172 sqm
• n Building height: 60 m
• n underground parking spaces available
• n Completion: Spring 2018
connection to the cycle path network, which
increases the quality of life yet further. The
residents can look forward to a diverse and
vibrant living environment that also offers
ample room for relaxation and retreat. n
MIPIM 2016 | ImmoFokus Austria
97

Neighborhood Development
THE NEW AREAS AT THE MAIN STATION
MASTERPLAN: total area 109 ha
HAUPTBAHNHOF
Total area infrastructure: 50 ha
OF WHICH:
Transportation area: approx 6 ha
Shopping Centre net area: approx 2 ha
Developer:
ÖBB Infrastruktur AG, ÖBB Immobilien GmbH
Architects:
Ernst Hoffmann, Theo Hotz, Albert Wimmer
Construction period: 2010-2015 (full operation)
SONNWENDVIERTEL
Total area: 34 ha
Location: southeast of the main station
5.500 units für approx 12.000 residents
in 7 projects
Developer, Architects see also article
„Sonnwendviertel, page 30
Construction period: 2012 - 2025
QUARTIER BELVEDERE
Total area: 25 ha
Location: northeast of the main station
(between the station and Schweizergarten)
6 construction units; see also article
„A quarter within a quarter“, page 48
130.000 sqm Bruttogeschoßfläche
Construction period: 2012-2018
98 ImmoFokus Austria | MIPIM 2016

Open quarter with
many front faces
The most important components of a station are tracks, passengers, a prestigious front facade - correct?
.The planning of Vienna Main Station centred on the requirements of urban residents.
by Andreas Kremla
U
ntil a short while ago, the Eastern
railway and the freight station
created an impenetrable barrier
between the city centre and the
periphery - a brown smudge on the average
Viennese‘s city map. Now dozens of buildings
are being constructed on a total area of 109
hectares (the size of Vienna‘s 8th district, the
Josefstadt) that will bring together people from
all walks of life. In the Sonnwend Quarter alone
5.500 residential units will give 12.000 residents
a new place to live. On the opposite side, at Quartier
Belvedere, 20.000 places of work are being
created.
money. Covering an area of 8 hectares, this
newly-built parkland will be the ‚green lungs‘
of the quarter. A „democratic park“ will be
built here, with many open spaces, giving Favoriten
something that the suburban districts
traditionally lack: a mixture of grey and green.
„A balanced relationship between developed
properties and open spaces“, was one of the
main objectives, says Wimmer, „because this
plays a crucial role in the quality and hence the
identification with a quarter“.
Sources: ÖBB Roman Bönsch, ÖBB Redl
More than the sum of its parts
The ÖBB and the city council have been working
on a master plan to revitalise this dilapidated
part of town since 2004. Considering
the size of the project, one might suspect yet
another construction scandal...but far from
it: „The most impressive part of this project is
the precision and continuity with which the
master plan has been followed“, says Albert
Wimmer, one of three architects in charge. The
whole area has been included in the grand plan,
rather than just building an isolated transport
station. The entire ensemble - literally meaning
„something shared“ - is not just a visual
triumph. The individual components work
together and offer everything people require:
living, working, travelling, relaxing - all of it
over an area 500 m by 500 m.
Favoriten goes green
Two recreation areas, the Belvedere and the
Schweizergarten, are a stone‘s throw away.
At the heart of the Sonnwend Quarter the
Helmut-Zilk-Park gives them a run for their
MAIN STATION AERIAL VIEW.
New quarters emerge: left Quartier Belvedere, right Sonnwendviertel.
The main station projects towards the city.
MIPIM 2016 | ImmoFokus Austria
99

Neighborhood Development
SONNWENDVIERTEL PANORAMA3.
Some buildings in the Sonnwend Quarter are already inhabited. Helmut-
Zilk-Park under construction.
Culture connects
Another aspect will shape this part of town: culture. A new „cultural
mile“ will lead from the Wien Museum at Karlsplatz via the Belvedere
and Quartier Belvedere to the 21er Haus at Schweizergarten and the
War Museum at the Arsenal. But the perception of culture does not
end with museums and galleries. At the Quartier Belvedere, space
has been reserved for small, private ventures to install educational
and information facilities. Wimmer talks of „countless small elements,
which together imbue the quarter with identity and vibrancy.“
„Culture is made up of countless
small elements, which together
imbue the quarter with identity
and vibrancy.“
Albert Wimmer,
Hauptbahnhof-Architect
Working together, living together
Property prices in the area start at 7 Euros per square metre. Many of
the rental apartments are subsidised, while cooperative flats require
a moderate starting capital. Future residents need not be rich, but
should at present also be impervious to noise. Construction noise still
dominates, but over time it will be children that supply the ambient
noise here, since the area is particularly suited to young families. Beside
the new Zilk-Park, a new educational centre is emerging called
„Bildungscampus“, which will house kindergartens and schools. And
there‘s another thing attracting young people: the openness of this
neighbourhood.
SONNWENDVIERTEL.
Green spaces dominate the area.
100 ImmoFokus Austria | MIPIM 2016

VIS Wohnung Park und Schule.
Sources: Albert Wimmer ZT GmbH, Lisi Specht, Hubert Dimko
Open to all sides
Fencing is a rare sight in the Sonnwend Quarter.
There are no barriers - communal areas,
cafés and shops foster a sense of openness.
Green open spaces, bustling communal areas
open to anyone and social diversity. These
are buzzwords defining the public space here.
Experiences made with other large settlement
projects seem to have made a difference.
„You cannot identify a front or rear of the station,
but two equal sides - one facing the centre,
the other facing the 10th district“, explains
Albert Wimmer, „We achieved this very same
equality on the northern and southern boundaries
of the quarter. There‘s no second row
here, no flip-side.“
The area surrounding the main station is
exemplary in demonstrating good urban planning:
Inviting the opinions of all the involved
parties and attaching importance to both what
is being built and what is being left out. This
creates a neighbourhood that doesn‘t just function
as a place to lodge and work - but as a place
to truly live.
n
Main station architect Albert Wimmer
talks about…
ALBERT WIMMER.
Architect, CE Albert Wimmer: mastermind behind
the new main station
…the Helmut-Zilk-Park
„The 8-hectare parkland links the established Favoriten, which is lacking in
green spaces, with a new pilot area.“
…cultural aspects of the new quarters:
„Culture does not only mean museums, it‘s also about start-ups, about
vibrant areas. Culture is made up of countless small elements, which
together imbue the quarter with identity and vibrancy.“
…social connections
„When you walk through the station, you will see a forecourt to the north
and to the south. We not only strive for social diversity within the buildings,
we want to actively break down barriers in their surroundings. This leads to
social cross-linkage between a variety of quarters and social hierarchies.“
MIPIM 2016 | ImmoFokus Austria
101

Neighborhood Development
The ÖBB develop some of
Vienna‘s largest properties
The urban landscape of Vienna has undergone a transformation during the last few years. Where cargo
trains once sat waiting in storage sidings, modern parts of town with residential units, offices, schools and generous
parks are rising up. Areas formerly taken up with railway infrastructure are gradually being replaced with high quality
living spaces.
by Herbert Logar,
ÖBB-Immobilienmanagement GmbH
T
he crucial aspect of this urban development
was the interaction of
two ambitions: In their capacity as
landowner, the ÖBB have set themsselves
the goal of establishing and utilising
attractive living spaces while the municipal
government is looking for developments to
accommodate the annual influx of several
thousand people, requiring housing, offices
and schools.
Vienna is in need of these valuable spaces, because
the city is growing at a pace unmatched
by almost any other European capital. There
have been several events in the recent past,
which have triggered this boom: The fall of the
iron curtain in 1989 catapulted the Austrian
capital into the centre of Europe. The national
industry was quick to establish ties with the
countries of Eastern and Southeastern Europe,
beginning a lively exchange.
102 ImmoFokus Austria | MIPIM 2016

Austria‘s accession to the European Union a
few year later extended this network towards
the west, further cementing Vienna‘s central
position within Europe. Both the Balkan War
of the 1990‘s and the current conflict in Syria
are bringing thousands of refugees across our
borders, the majority of which settle down in
Vienna.
Vienna has gained a dynamic momentum,
growing by 25.000 residents every year. With
a population currently at 1.8 million citizens, it
is expected to break the 2 million mark within
the next 7-8 years. A growing population requires
spaces to live, which is why the City of
Vienna is looking for vacant lots for the creation
of entire new quarters. The majority of real
estate is being developed on the urban fringe.
However, the properties of higher grade are
the ones in central locations around the city,
offering good transport links. Just the kind if
property the ÖBB have at their disposal.
URBAN DEVELOPMENT AT THE VIENNA NORDBAHNHOF.
For several years, the ÖBB have implemented
a strategy of reducing areas used for cargo
traffic within Vienna and concentrating these
activities at new locations. This development
saw the closure of the freight divisions at both
the South and North stations. To facilitate
this site concentration and the intermodal
movement of freight within Vienna, the ÖBB
are constructing the Cargo Centre Wien Süd at
Inzersdorf, which will replace the current Terminal
Wien Nordwestbahnhof. Following this
strategy enables the ÖBB to provides spaces
for urban planning visions of the future. The
development potential in Vienna alone comes
to approximately 2 million square metres of
total floor area.
Together, the City of Vienna and the ÖBB continue
urban expansion, which gives both parties
advantages: The city is able to re-zone large
areas, creating access to urgently needed living
PLANNINGS OF THE VIENNA NORDWESTBAHNHOF.
space and additional office location. 25.000
residential units will be built on former ÖBB
real estate within the next decade, generating
vibrant quarters on previously inaccessible
railway properties. In turn, the ÖBB are able to
sell the re-zoned and developed properties at
better prices.
ÖBB urban developments in detail
Measuring 65 hectares, Vienna‘s north station
counts as one of the most crucial inner-city
development sites in Vienna. It is situated
close to the recreation areas of Prater and the
Danube, but also to the city centre. The ÖBB
initiated a first wave of urban development
in the area several decades ago, when a row
of office buildings was constructed along the
Lasallestraße. Even though the cargo sidings
used for coal transportation had been disused
since the end of the Second World War, it took
a long time until the transformation of the site
was tackled. Since then, about half of the property
has been developed. From 2007 onwards,
4.000 residential units for 10.000 people have
been built, 700 work spaces and an educational
campus were created. Until 2025, the remaining
35 hectares will see the construction
of a further 6.000 apartments and a school,
grouped around a central green space.
What the north station represents in the district
of Leopoldstadt, the north west station
will become for the Brigittenau. The ÖBB are
still using the site as a cargo terminal, but demolition
of the storage depots and ancillary
MIPIM 2016 | ImmoFokus Austria
103

Neighborhood Development
AREAL VIENNA SÜD-/OSTBAHNHOF (2005).
buildings is set to begin the process of redevelopment
in 2018. The 44-hectare-site will
be home to 12.000 residents; offices with a
capacity of 5.000 work spaces and a 10-hectare
public park will also be built.
„The ÖBB are creating sustainable
living space for ourselves and our
children.“
Herbert Logar,
ÖBB-Immobilienmanagement GmbH
Across the Danube, the ÖBB are currently
developing an area measuring 6,5 hectares in
Floridsdorf, termed „Florasdorf“. The former
railway property is to be given a rural character,
with green spaces relating to the Old and New
Danube. 700 residential units as well as offices
and local shopping facilities are planned.
Vienna Main Station
The new main station entered full operation in
December 2015 and replaced the former south
and east stations. Vast areas, previously occupied
by tracks and cargo handling facilities,
have become obsolete due to the relocation of
these services to other sites.
The last years bore witness to the rise of a new
quarter - covering some 59 hectares - that
radically changed the structural relationship
between Vienna‘s 4th and 10th district. In the
past, the two former stations as well as the ad-
jacent post office premises and railway tracks
acted as impenetrable barrier between the two
districts. This has now been transformed into
a central pace-setter for the area. Even the station
is now open to all sides.
Both the city and its citizens benefit from this
development: Local residents are no longer
subjected to the noise of cargo handling,
shunting and arriving or departing trucks
within the residential zone. The removal of
the erstwhile barriers means that the areas
surrounding the station can now merge with
one another. This permeability and connection
between formerly segregated parts of
the city allows for a fresh appreciation of the
surroundings and boosts quality of living.
Freight stations, formerly a fringe components
of urban life, are becoming spaces for
creative innovation that invigorate entire
neighbourhoods.
Two kilometres from the city centre, the Main
Station has become the centre point of an
emerging part of town, with a construction volume
of approximately 1 million square metres
total floor area. Local residents are regularly
informed about upcoming steps of construction
by the developers. The clearing of the sites
prior to construction was conducted in a sensitive
manner, with protective measures against
noise and vibration as well as groundwater
protection part of a comprehensive environmental
impact assessment.
104 ImmoFokus Austria | MIPIM 2016

A total of 5.000 residential units and offices for
20.000 work spaces are under construction. In
close proximity to the new landmark station,
several projects have already been completed,
including a financial centre, apartment
buildings, hotels and an educational campus.
Further office, hospitality and residential
structures are to follow shortly. A final, eventually
car-free zone measuring 11 hectares with
space for 1.500 apartments will be constructed
east of the Helmut-Zilk-Park from 2017.
Local residents can take advantage of a variety
of offers at the new BahnhofCity: Connections
to suburban train, underground, tram, local
as well as regional bus services, taxi cabs and
rental cars make travelling easy. The shopping
centre, with 90 different outlets, offers a
chance to satisfy all necessities on two floors.
The symbioses between the station and its surroundings
creates a boost for this unique area:
living and working at the main station. In the
middle of town.
The ÖBB are fully aware of its responsibilities
in connection with such crucial developments
and chooses investors wisely in order to shoot
the bolt on property speculation and offer
social diversity in these new parts of town. A
vibrant mixture is of prime importance. Both
the residential and commercial aspects attract
other institutions: schools, cultural and leisure
facilities, retail and gastronomy. And there‘s
plenty of room for all of them.
The ÖBB thus invest in future generations, by
creating sustainable living space for ourselves
and our children.
n
AREAL VIENNA HAUPTBAHNHOF (2015).
MIPIM 2016 | ImmoFokus Austria
105

Up in the Sky
Flying high. The site at the new main station will provide the future
residents of SKYTOWER and SKY6 with all the modern amenities of
city living: excellent transport links to all parts of Vienna, a variety of
shopping and leisure activities as well as kindergartens, schools and
an educational campus.
by Michael Neubauer
106 ImmoFokus Austria | MIPIM 2016

SKY6. At Gombrichgasse, 75% of the 44 residential units have already been sold.
BUWOG GROUP
Sources: Cordes Werbeconsulting GmbH
T
he entire quarter around the new
main station is the largest inner-city
development object in Vienna and
BUWOG Group was among the first
developers to complete one of its projects here.
„We are now looking forward to developing our
projects SKYTOWER and SKY6 at this unique
location and to continue the creation of highquality
living spaces“, says Andreas Holler,
managing director responsible for development
at BUWOG.
„The SKYTOWER, made up of 18 floors, stands
out as an elegant symbol for modern living in
a seminal area of the city and serves as a landmark
for the station quarter. The sales figures
illustrate the immense buyer‘s interest in these
two showcase projects: Half of the available
127 units of the SKYTOWER have already
been sold while only 25% of the 44 units at
the neighbouring object SKY 6 at Gombrichgasse
are still available“, Holler explains. The
location at the new main station will provide
the residents of SKYTOWER and SKY6 with all
the modern amenities of city living: excellent
transport links to all parts of Vienna, a variety
of shopping and leisure activities as well as
kindergartens, schools and an educational
campus. A local recreation area in the shape
of the 7-hectare Helmut-Zilk-Park will cater
to both residents and visitors alike, enhancing
the quarter‘s appeal still further.
The residential SKYTOWER is characterised
by a distinctive design, which will soon become
a landmark of this promising location.
It consists of 127 residential units, a prestigious
lobby and a retail unit on the ground
floor. Residential parking spaces will be built
underground. The tower itself rises from the
building‘s plinth and the apartments on the
upper floors offer a stunning view across the
BUWOG Group is the leading Austro-German
full-service provider on the property
market and can look back on 65 years of experience.
Its high-profile property portfolio
includes 51.500 stock management units,
equally divided between Austria and Germany.
Apart from asset management (sustainable
rental- and stock management),
the company‘s divisions Property Sales
(profitable sale of single units, buildings
and portfolios) and Property Development
(design and construction, focussing on Vienna
and Berlin) together cover the entire
value-creation chain in the property sector.
The BUWOG AG shares have been listed on
the stock exchanges Vienna, Frankfurt and
Warsaw since April 2014.
The project online:
skytower19.at
sky6.at
MIPIM 2016 | ImmoFokus Austria
107

Neighborhood Development
SKYTOWER.
The apartments on the upper floors offer a
stunning view across the new part of town,
the units with dedicated roof gardens being a
particular highlight.
„High quality living spaces at
SKYTOWER and SKY6.“
Andreas Holler
new part of town, the units with dedicated
roof gardens being a particular highlight.
While 50 % of the SKYTOWER‘s apartments
have already been sold, units of all sizes
and locations are still available to potential
buyers. Their excellent rental prospects in
this booming area make the apartments
particularly interesting to investors. In close
proximity, the low-energy building SKY6 is
under construction, which will offer 44 freehold
and investment apartments, ranging in
size between 52 and 152 square metres and
fitted with modern features. The low-energy
aspect not only brings ecological advantages,
but also reduces heating costs. Additionally,
every unit is equipped with a terrace, loggia
or balcony and 44 private parking spaces are
available to residents. In conjunction with
the project SKY9, also developed by BUWOG
Group and already entirely handed over to
the new residents, SKYTOWER and SKY6
make for an impressive ensemble. SKYTO-
WER was designed by architect Peter Podsedensek,
architects Riepl Kaufmann Bammer
took charge of designing SKY6.
n
108 ImmoFokus Austria | MIPIM 2016

5 questions for
Andreas Holler
BUWOG Property Development Austria‘s managing director talks about the Viennese property market.
The interview was conducted by Michael Neubauer
Andreas Holler,
BUWOG Manager Director,
Property Development Österreich
What type of apartments are currently in
high demand on the Viennese market?
Andreas Holler. The highest demand is
still for apartments with 2-3 rooms. Single
households are on the rise, but one-room
micro apartments have not triggered demand.
There is, however, a strong demand for flexible
floor plans and buildings which offer flexible
solutions outside the accommodation, for example
smart communal areas. Good transport
links remain a top priority.
Prices in Vienna have continued to climb in
2015. How would judge the price development
in the coming years?
> There is ongoing demand, Vienna is growing
faster which in turn raises prices, but all within
reasonable margins. We can‘t see any sign of
the often-quoted property bubble. The greatest
price drivers are a shortage of properties, rising
construction costs and complicated zoning procedures
that delay projects and consequently
make them more expensive. The subsidised sector
has to contend with much higher quality requirements
than the freehold market. This is an
area where policy makers should intervene, because
adjustments in this respect would make
living in Vienna more affordable. Incidentally,
early in 2016, BUWOG and EHL will publish the
Viennese Apartment Report, where detailed information
on price development, based on contract
conclusions, will be listed for every district.
Both Skytower and Sky6 are low-energy
buildings. How important is sustainability
in the residential construction business?
> > Our clients, apartment seekers that is, have
developed a certain sensitivity for sustainability,
something that also applies to other areas
of life. The want to live in a building that was
constructed in an energy efficient manner and
supports an environmentally friendly way of
life. As developers and partners of klima:aktiv
pakt2020, we are convinced this is the way forward,
but we notice that the customers are becoming
more conscious of it, too. Many changes
have therefore become accepted practise
with new construction. These include building
materials, heating and energy concepts but
also charging points for e-cars in the garages
and car-sharing offers in the area.
In your opinion, what is special about the
Main Station quarter?
> > The entire area around the new main station
is the largest inner-city development
object in Vienna, with Quartier Belvedere,
Sonnwend Quarter and the Helmut-Zilk-Park
giving the 10th district an enormous boost.
Urban living and working, together with the
proximity to the city centre and the exceptional
infrastructure provided by the station
make this location unique. Smart areas for
residential, retail and office applications
have been implemented here - it is worth
remembering that the station itself only takes
up roughly half of the area formerly occupied
by the South Station. It is not only of interest
to commuters but sets the pace for the entire
quarter with its shopping and event spaces.
Die BUWOG is not only active at the main
station. Can you give us a brief overview of
other current projects in Vienna?
> > Die BUWOG has a broad spread in Vienna.
We are currently developing the project Otterweg
close to the Lobau in the 22nd district
- 120 units for families and nature lovers. In
the 12th district, Southgate with 242 units is
under construction and a very exclusive project
is taking shape in Pfarrwiesengasse in the
19th district. This object comprises 78 freehold
apartments and seven city mansions in
the luxury segment with extras such as wine
cellars, spas and dog
n
MIPIM 2016 | ImmoFokus Austria
109

Let ’s dance!
Let ’s dance!
Kallco is is participating at at the the main main station station quarter quarter in an in unusual an unusual way way
The exciting new part of town around Vienna‘s main station
will radically change the urban fabric of the inner city. Until a
few years ago, detours of several kilometres - along a vast
area dotted with warehouses and shabby industrial buildings
- were necessary to traverse the neighbourhood between the
Gürtel, the Arsenal and the 10th district. Soon, all this will be
replaced by high-rise buildings, hotels and offices, new roads
and residential structures, green spaces and a huge public
park, together facilitating a new way of urban living.
A varied mix of residential buildings is being constructed
around the future Helmut-Zilk-Park, west of the new station.
With its wide and diverse spread, consisting of high-class
freehold projects, subsidised building assemblies and affordable
smart apartments, the latter of which will help recent
graduates master the transition from student to working life.
An urban feel, vibrant city life, freedom from car traffic and
alternative mobility concepts with strategically positioned
communal garages will all lend this area a unique appeal.
The ÖBB, in their capacity of landowners, tendered a twotier
development competition for the first tranche of residential
units along the parkland. The applicants were asked
to submit concepts, which comply with the high standards
expected by the new quarter‘s quality of living. Special
emphasis was laid on the so-called „Quartierhäuser“, predominantly
residential structures incorporating sustainable
and vibrant ground floor areas to boost the urban feel.
It was matter of honour for KALLCO to apply in order to
be part of such an interesting and vital process of urban
development in Vienna. After facing tough competition,
KALLCO was awarded the contract for a Quartierhaus immediately
adjoining the park. The jury was convinced by
the optimistic and spirited proposal.
KALLCO will realise this project on lot C.17.B with construction
beginning in spring 2016. The building will be handed
over to the tenants towards the end of 2017.
FRESH, CHEEKY, ACTIVE
AND „COLOURFUL LIKE YOU“
The registered charity arriOla will operate a dance studio
for children and young people according to this motto,
which will breathe life into the ground floor, fill it with
action and fun and contribute towards intercultural understanding.
Three dance studios and an open-air stage
offer plenty of opportunities to hone talents and create
tomorrow‘s dancing stars. The proximity to the near-by
educational campus and the great transport links mean
that both young people from the area and those who live
further away can make use of the facilities. Dance as an
integration tool - the slogan „Let‘s dance“ was inspired by
this underlying idea.

The remaining areas of the ground floor will cater to a wide
variety of guests. Ideas under discussion include a vegetarian
catering service or a customer service and support
centre, connected to the first floor, where KALLCO will establish
its new headquarters. Art interventions will heighten
the appeal for culturally-minded visitors, an installation by
VALIE EXPORT forming the centre point.
Everything above the second floor will be given over to
apartments with variable structures and flexibility in size,
ranging from 2 to 4 rooms for those who prefer a very urban
lifestyle. Recombination of apartments and flexible floor
plans to accommodate individual requirements are a key
ingredient. KALLCO‘s patented „SLIM BUILDING CON-
CEPT®“ is especially suited to implement this kind of variety.
Its room modules are open to all sides and dispense with
fixed wall panels, making adaptions according to customer
specifications easy.
NEW METHOD OF CONSTRUCTION - VARIABIL-
TY AS THE ULTIMATE MAXIM
The design and construction methods of the building are based
on the patented SLIM BUILDING CONCEPT® (licensed
by KALLCO). This makes the cumbersome and rigid system
of shear walls - a characteristic component of Viennese
housing - obsolete and banishes it to the dustbin of history.
KALLCO‘s SLIM BUILDING® System is based on room modules,
open to all sides, and uses a functional matrix made
up of multiples of 1,40 to 1,45 m. The rooms are not defined
by load-bearing partition walls, but rather by strategically
positioned, slender columns made from sectional steel.
Apart from bracing for earthquake safety, the modules can
be positioned in any desired configuration and are easy to
connect or separate in every direction. The spatial design
is unimpeded by joists or partition walls and the facade is
also non-load bearing. The thickness of the vertical members
does not exceed 12 cm for a normal ceiling (18-20 cm

thick), which constitutes a notable increase in effective area
efficiency compared to conventional construction methods.
The system allows adaptability and variability on all floors and
Das can System thus kann conform sich to schon the intended frühen use very Projektstadien early on in the an
Nutzungsabsichten planning process. anpassen, Should room die requirements auch dann be finalised verwirklichbar
sind, wenn in der späteren Phase des Projektes
at
a later stage or conditions of use change, the system can easily
respond. This flexibility is a crucial condition for the future
die Raumerfordernisse erst im Detail festgelegt werden
security and intrinsic value of the property.
können oder sich die Nutzungsgegebenheiten ändern.
Diese Wandelbarkeit und Flexibilität ist eine wesentliche
Voraussetzung für die Zukunftssicherheit und Werthaltigkeit
des Gebäudes.
renderings © expressiv
URBAN SPACE AND VIBRANT LIFESTYLE
At KALLCO this project is not only viewed as an architecturally
interesting contribution towards the development of this
new URBANER part to town, RAUM but also UND as a landmark. Special attention
is LEBENDIGES being paid to the junctions WOHNEN of private and public spaces.
Bei Kallco sieht man dieses Projekt nicht nur als interessanten
architektonischen und städtebaulichen Beitrag
The entryway outside relates directly to the spectacular inner
atrium and opens visual and actual connections to the neigh-
zum neuen Stadtteil, sondern als „landmark“. Auf die
Schnittstellen zwischen privatem und öffentlichem Raum
wird daher besonderes Augenmerk gelegt.
renderings © expressiv
View
North-West
Ansicht
Nordwest

ouring buildings. It is more than an entrance, it invites interaction
and offers unique spatial experiences. Connections and
transitions to adjacent properties are encouraged, permeable
boundary lines and communal designs are all part of the plan.
The „proscenium“ accentuates the location within the space
and next to the park: Synergies between life inside and the
public space around the building are a key ingredient of the
design. The translucent hall, which stretches from the forecourt
through the atrium and further up through the entire
building represents an opening-up, a framing device or proscenium
for the urban area beyond. It sharpens perception
for the varying activities within the house and creates a dynamic
correlation between inside and out.
For well-earned relaxation periods, two roof gardens await,
each with a different function: the first offers the possibility
for urban gardening or informal ‚hanging out‘ at the Veggie
Bar, whereas the second one is a place of peace and quiet, a
„Chilletarium“. The stunning views are a bonus to both.
The location next to the park and on the edge of a pedestrian
area make underground parking expendable, especially since
a multi-storey car park is being erected around the corner,
screening the property from the railway tracks and offering
ample space for parking. In-house bike lockers are available
for the prized vehicles upon request.
VARIABLE FOOTPRINTS
AND REFINDED FITTINGS
The residential areas take up all the floors from the second
upwards. 32 freehold apartments of varying sizes are available.
The mix of spaces includes 2-room apartments with
balconies, perhaps interesting as a second home or for investors.
The range extends to 4-room flats with a balcony
or terrace, both offering unimpeded views of either square
or park. There is no apartment quite like the other, leaving
plenty room for individual requirements.
Prices might be moderate, but KALLCO did not go cheap
on the fittings: wood/aluminium windows, radiant heat and
geothermal cooling, solid wood floors and elaborate technical
infrastructure comply with the latest standards and are
usually reserved for the luxury segment.
The hall, or „proscenium“ as KALLCO likes to call it, represents
a prestigious framework to everyday life. Areas for
a variety of activities, from a small library to a table soccer
room, foster a sense of community. Artistic interventions
will imbue the building with a special atmosphere that does
justice to the centre of a new quarter
Developers: Kallco Bauträger GmbH
Projektmanagement: Kallco Development GmbH
Tel: 01 546 25
www.kallco.at
Architectur: Feld 72
free zone plan: yewo
artistry conception: Susanne Kallinger
View
South-West

Rubrik
ST. PÖLTEN: WHERE VIENNA BEGINS
Viel Raum in die Tiefe
Zug aufs Tor
Spielfeldrand mit
Lebensqualität
Coachingzone
mit exzellenter Logistik
St. Pölten Als Standort spielen wir dort, wo mittlerweile
auch unser Fußball spielt: Europa League. Als Tor in die Metropolregion
Wien. Direkt an der Achse München - Budapest. Zum
erstklassigen Prei-Lage-Verhältnis
Für Ihren Spielaufbau:
Wirtschaftsservice ecopoint
www.st-poelten.gv.at
ecopoint@st-poelten.gv.at
A CITY CHARACTERISED BY HEAVY INDUSTRY HAS BECOME A BIZ- AND
TECH-GATE IN VIENNA‘S METROPOLITAN AREA
Standort Inserat.indd 1 01.02.2016 10:19:46
P
roducts for the international market
have a long history of manufacture
in St. Pölten, especially machinery,
textiles and yarn. These days, the
city is spinning a very different kind of yarn: The
technical college is devising digital media and
security concepts, the New Design University is
working on projects for information design and
e-mobility.
The capital of Lower Austria has turned from
a port of call to a transit station for the expanding
businesses within Vienna‘s metropolitan
area. Its location on the traffic axis Munich-Budapest
within 25 minutes of Vienna
has helped it become one the fastest growing
commercial zones in the country. The neat
city centre and the Alps on the doorstep are
an added bonus.
Companies of the caliber of IKEA are now drawn
to St. Pölten, a phenomenon for which Christoph
Schwarz, head of the economic services
office ecopoint, has a simple explanation, „St.
Pölten offers untapped resources at the promising
junction of western and eastern Europe! n

In the south of the state capital are large land reserves for
the settlement provided in the industrial area of St. Pölten
NOE Central!
St. Pölten
State capital of Lower Austria
Population: 58.445
Distance from Vienna: 50 km
Direct access to motorway network and high-speed
railway Munich-Budapest; 25 km from the Krems port
on the Danube.
Contakt: Future Development, Economy and Marketing
Economic Services Office
Phone: +43 2742 333-2900
E-Mail: ecopoint@st-poelten.gv.at
www.ecopoint.info

The kroLEWska project is located in the
innermost core of the city’s business center
the Central Business District. With particular
attention being paid to functionality, design
and quality a new piece of top-class real
estate is emerging here. High-class office
and retail spaces with a total surface of 6.000
sqm have been developed and are rounded
up by means of a high-quality facade.
Matching its top location and a majestic
appearance, the facility, classified as
an AA building, is called króLEWska
(www.krolewska.com). The proud name
of the project is more than to the point,
as Polish “LEW” means „LION”, while
“Królewska” means “Royal”. króLEWska is
a true gem on Warsaw’s real estate market.
The building will soon be completed.

The Danube City will be linked to
the new Danube residential area, the
urban ensemble will be completed.
A residential complex consisting of
a narrow residential building with a
height of around 150 meters and a
further terraced building will shape
the new cityscape between the Danube
City and the new Danube residential
area. The consortium composed
of S+B Gruppe and Soravia
Group will build owner-occupied or
freehold flats.
At the real estate developers homebase,
some very exciting projects
are on the way. In the district „Neu
Marx“, the area around the former
slaughterhouse ground in St.
Marx in the 3 rd district of Vienna, a
brand new life science building will
be developed. Next to the properties
Marxbox and Solaris, the brandnew
project Vienna Biocenter 4 will offer
additional 19,000 sqm of high
quality office and laboratory space.
Completed in 2017, the project will
be the ideal base for trendsetting
companies.
Not far from the historic center,
in Pankrác - the 4th district of Prague
- the S+B Gruppe is developing
the office and commercial buildings
DECO and ELEMENT. An ideal business
location with optimal traffic
connections and perfect visibility.
DECO and ELEMENT are two office
buildings designated for upscale top
quality developments. Retail units of
most of the banks are situated in this
area, stylish restaurants and even a
large park. A health care centre with
a pharmacy is situated in a walking
distance, as well.

Advertorial
Preserver of value
and motor
for innovation
S IMMO Germany in Berlin
S IMMO Germany, a subsidiary of Austrian S IMMO AG, has been active
in Germany for about 10 years and has evolved into one of the main
pillars of the corporate group. Last year alone, the company concluded
28 transactions and added 130.000 sqm to its portfolio, mostly in Berlin.
The main focus of the varied portfolio lies on stock properties in both the
residential and commercial sector, which generate a sustained rental
income. They guarantee a balanced risk structure within the portfolio.
Other fields of interest include revitalisation, redevelopment and land
procurement.
S IMMO’s spectrum of tasks is wide-ranging. Properties in varying
states of development and different uses require a high measure of
experience and market expertise. The company’s success on the competitive
Berlin market stems from this flexible market position and
selection of properties.
The security provided by the large portfolio enables S IMMO to venture
off the beaten track in terms of development and revitalisation. Often,
niche markets are addressed and certain properties become test objects
for new products and ideas. A good example for this is the current
redevelopment of a former department store in the Neukölln district.
The potential of the 22.000 sqm property, dating back to the 1970’s,
may not be immediately apparent. It is largely vacant, some store areas
are currently occupied by bargain stores, while a large multi-story car
park towards the rear does little to make new usage viable. The location,
however, is perfect. Situated on the ‘lifeline’ of the district, the
Karl-Marx-Straße, the city council gives it the designation “key property;
relevant to the city centre”. A challenge S IMMO is willing to
accept. Redevelopment of the property is in the planning stages, with
the ultimate goal of creating a location that will act as a catalyst for the
entire district.
The advantage of such an approach is not only a higher number of
properties for acquisition – stock properties also benefit from experience
gathered: ‘Sonneninsel’ – project at Neukölln was redeveloped
by giving two very different objects a uniform identity, prompting the
interest of a specific target group. By addressing the appropriate target
group and selecting the most suitable tenants, full occupancy was
achieved before completion. Many tenants’ ideas were incorporated
into the design and will filter through to other projects as experience
gained.
n
118 ImmoFokus Austria | MIPIM 2016

A Viennese in Berlin:
Robert Neumüller, managing director
of S IMMO Germany
PORTRAIT OF ROBERT NEUMÜLLER
I
have been in Berlin since 2005 and I am
fascinated by the city’s dynamism, especially
from a property point of view.
We are currently witnessing incredibly
fast and dynamic developments in the real estate
sector. The prices, the numbers of building
permits and the volumes of transaction are
rapidly rising. In my opinion, the timing of these
developments is directly related to Berlin’s postreunification
events and the historic urban
structure. The latter is largely based on the visionary
town planning of James Hobrecht during
the 19th century. Hobrecht’s design of broad
streets and pavements as well as the many expansive
squares give Berlin a quality of stay that
presents a competitive advantage, attracting
people to the city.
Admittedly, these structures were already in
place 10 or 20 years ago. But Berlin’s sudden
surge of popularity has a direct link to its history.
One might have expected such a boom
immediately following the fall of the Wall,
but this did not materialise. Expectations
were simply too high. Until the reunification,
Berlin had been an isolated and heavily
subsidised city, a “normal” development had
not taken place after World War 2. The two
parts of the city were in fierce competition
with each other, which generated massive
financial funds as long as it lasted. After the
reunification, things started to crumble. The
heavy industry vanished, the DAX companies
did not return and the population also migrated
to the surrounding regions. It would take
time for a healthy structure to re-form. The
recovery began post-2010/2011, slowly at first
but gaining momentum fast. An enormous
accumulated need became apparent, which
still has not been satisfied.
Today, we are profiting from the urban planning
mistakes of the past. The so-called “wholesale
development” of the 1970’s left many gaps
in the city’s landscape, which can be filled just
as easily as the abandoned industrial sites. We
are also bearing witness to a renaissance of the
Wilhelminian style of building structure and
its accompanying mix of uses. Many quarters
we invest in are proving popular because so
many possibilities are still open. Spaces can
be re-imagined, something that appeals to the
creative sector in particular.
We are scrutinising developments and respond
accordingly. Berlin is fun. We gain new experience
from our projects, keep investing and look
forward to a future of new challenges, which
will necessitate further adaptation to market
requirements.”
n
MIPIM 2016 | ImmoFokus Austria
119

STUDIO
ZWEI
VIENNA´S LARGEST 32M 2
We have transformed a 32 sqm apartment into a functional 2-room flat
and this works because STUDIO ZWEI is not about the number of rooms
but about functionality. STUDIO ZWEI leaves no wish unattended and is
completely adaptable to your everyday requirements.
What we couldn‘t quite manage? A dining table seating 12 or a bespoke
Barbecue on the balcony. That is why the house includes meeting areas:
From the dining lounge with full kitchen on the ground floor to the green
roof terrace with BBQ spots.
GREEN ALL AROUND
STUDIO ZWEI can offer even more: the greenery of the adjacent Grüner
Parter recreational area is literally brought inside, the concept of „vertical
green buildings“ re-invented. An additional, outer layer of plants on top of
the facade creates a perceptible green space for the residents.
This green facade not only acts as part of an innovative urban design, but
also helps to reduce energy consumption. During the summer months,
the foliage casts shadow on the facade and cools the building. In winter,
the plants act as insulation but allow enough sunlight through to warm
the facade. The plants do of course also add to the quality of living in the
house, turning balconies into private gardens with stunning views.
URBAN LIVING RE-INVENTED
STUDIO ZWEI is offered unfurnished, giving residents a maximum of
possibilities to use the rooms as they wish.
But we have also developed several furnishing concepts, which unfold
the full potential of STUDIO ZWEI. These ideas include a pantry kitchen,
a partition wall with several moving components and a foldaway bed
with integrated desk.
When purchasing a STUDIO ZWEI, any of these additional offers can be
selected to suit all specific, individual needs.
Find out more at
www.viertel-zwei.at
Advertorial

VIERTEL
ZWEI
VIERTEL
ZWEI
DENK
DREI
21.000m²
Premium-Büros
2.500m² Direkt am Grünen Fertigstellung www.viertel-zwei.at
G e w e r b e fl ä c h e n Prater in Wien Mitte 2017

Advertorial
UBM with a wealth of
offers at MIPIM
The top management of UBM Development AG will be offering a wealth of investment opportunities at MIPIM.
Here’s an interview with two members of the UBM Managing Board, Karl Bier and Michael Wurzinger.
U
BM’s original intention was to bundle
up the projects held for sale into
property packages covering various
countries and asset classes and to
realise these as package sales. Now the property
developer has changed its strategy. Why?
Michael Wurzinger: We decided to sell the properties
individually rather than as a package
because the property investment market has
undergone further improvements for us as
sellers. By selling properties one by one we can
achieve higher sales prices for our shareholders.
We only started out with package sales because
the administrative burden is lower and more
straightforward for a package solution than for
individual sales. However, the rise in sales prices
for individual sales in the meantime clearly justifies
the extra administration.
Karl Bier: Generally speaking, the international
real estate investment market has improved
even more for sellers in recent months. One
striking feature has been the number of forward
deals which UBM is able to close at present. For
office properties the buyer often wants to fix a
deal even though construction is often months
away from completion and pre-letting is only
at 50%. A good example of this is lot 4 at the
Quartier Belvedere Central in Vienna. Even
though the 22,000 sqm of lettable space in the
office building will not be completed until 2018,
it was already sold in January 2016. We have also
seen this trend with hotel properties: we recently
bought two hotel plots in Berlin and Munich,
which we sold to an investor the very next day
and will hand over in two years when the hotel
is finished.
Investors fear that the market could run away
from them and that’s why they are choosing to
lock in their investment earlier and earlier. We
have even managed to sign forward deals at a
stage when we don’t even have a zoning permit
yet. This would have been unthinkable in the
past; on the other hand, it shows the excellent
reputation UBM now enjoys internationally as a
reliable project developer.
How many properties and/or projects are
now being sold by UBM?
Wurzinger: At the moment we are offering a total
of 18 properties, which we originally intended to
offer as a package. In any case, we want to use
the current boom in real estate prices and to sell
a total of 40 properties in the course of the year.
122 ImmoFokus Austria | MIPIM 2016

Bier: With this we are sticking to the strategy
laid out last year of continuing to reduce our
standing assets in favour of development. By
the way, we are already well on track: since
January last year we have placed 14 properties
with investors. The net cash-in from these 14
transactions is around EUR 170 million.
There seems to be an ever stronger focus on
the hotel asset class at UBM. What’s the reason
for this?
Bier: We have had a strong focus on this asset
class for several years, whereby we have been
operating in this business very successfully for
more than 20 years. In this period we have developed
a total of 43 hotels with almost 9,000
rooms, making us one of the leading hotel developers
in Europe. In fact, we have recently achieved
a significant expansion in project volumes as
a result of the increased demand from investors.
Where are the new hotel projects?
Bier: The current project pipeline involves
twelve additional hotels in Amsterdam, Berlin,
Danzig, Frankfurt, Hamburg, Mainz, Munich,
Warsaw and Vienna. On top of this, UBM is the
owner, co-owner or operator of 17 hotels with
around 3,800 rooms.
UBM also actually operates hotels itself,
why?
Bier: Because our knowhow is needed to make
the hotel asset class suitable for classic investment
funds in the first place. On the other hand,
it also generates attractive and consistent profit
margins. In 2015 the consolidated revenue
of UBM’s hotel interests climbed by more than
15% from EUR 78 to 90 million
Wurzinger: In general, the growing investment
market is paying more attention to hotels, an
asset class which was treated as the poor relation
for many years. For example, in 2015, transaction
volumes on the global hotel market
rose by almost half to USD 85 billion. Around
USD 29 billion of this came from Europe, the
Middle East and Africa. This is a trend which
has had a very positive impact on UBM’s development
business.
Bier: Given these very pleasing developments,
we will have an even stronger focus on the hotel
asset class in the future.
Thanks for the interview.
n
MICHAEL WURZINGER
was born in 1971. Before joining the UBM Managing Board,
he was a successful top-tier manager in a property financing
company and then moved to the PORR Group. Here he was
the Managing Director of “Strauss und Partner”,
which became part of today’s UBM Group in the course
of a reorganisation. Michael Wurzinger is responsible for asset
management & transactions, marketing, legal affairs and
compliance.
KARL BIER
was born in 1955 and is responsible for making UBM what
it is today: there were three employees when he joined the
company, today there are around 700. Karl Bier has been
Chairman of the Managing Board since 1998.
He is responsible for strategy, business development and
new markets, corporate communications and IR, internal
audit, audit, risk management and human resources.

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Visit us at MIPIM 2016 – AustRIAN stANd R7. E2
E_Anzeige_MIPIM_190x240_160222.indd 1 22.02.16 16:07

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A
bout 22.8 million travelers made use of Vienna Airport
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Real estate development as an important part of the
airport’s business strategy
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estate location. An area of more than 1,200 hectares is owned by
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Vienna Airport is turning into an “airport city”
The trend is clearly towards the development of “airport cities“.
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a wide range of shopping opportunities and culinary delights
to conferencing and event facilities and overnight accommodations.
They also include new services such as medical and
fitness centers. Vienna Airport is also moving in this direction.
One third of the airport’s revenue is already derived from the
non-aviation segment such as parking, leasing of commercial
properties and shopping/catering. Considerable growth potential
still exists in the Eastern Austria region, and Vienna Airport
hopes to exploit this. The aim is to establish the airport as a multinational
location.
Flughafen Wien AG attaches considerable importance to sustainability.
It was recently granted certification in accordance with the
European environment management system EMAS, and has carried
out more than 100 measures leading to a significant reduction
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efficiency. Certification by the Austrian Sustainable Building Council
ÖGNI, the Green & Blue Building Award and the 4-Star Airport
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show that Vienna Airport is on the right track.
n

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VISIT US AT MIPIM IN CANNES, MARCH 15-18, 2016, RIVIERA HALL, STAND R7.E2
Austria’s 1 st location with a DGNB certificate based on
the ÖGNI’S “urban quarter certification”

Wordrap
130 ImmoFokus Austria | MIPIM 2016

„Wordrap –
amongst real
estate managers“
There have of course been investments into residential objects in the past.
Currently the economic, political and social significance of the residential sector
is growing. Are investments into residential properties overtaking those
concerned with office properties? ImmoFokus asked top managers of Austrian
real estate companies for their personal assessment.
1
A central theme of the MIPIM 2016 trade fair is „Housing the World“.
Are investments into residential properties overtaking those concerned
with office properties?
2 What would you consider the strengths and weaknesses of the Austrian
real estate market? What would you define as THE top trend of the coming years?
MIPIM 2016 | ImmoFokus Austria
131

Wordrap
Karl Bier
UBM Development AG
1
In Austria and Germany residential properties have overtaken office
objects along time ago when it comes to yields. There might be occasional
demand for modern office spaces, but as long as economic growth
doesn‘t kick-start, only very moderate price rises are to be expected.
2
Weaknesses of the Austrian property market are the concentration
on Vienna and the small number of players. A strength is the considerable
backlog-demand compared to Germany or other European countries.
Interest in residential properties is massive and the investments in
the asset class hotel are increasing significantly. Office and retail properties
are also in good demand due to investor‘s high solvency and a lack of
investment alternatives.
Stefan Brezovich
ÖRAG Immobilien
1
Within the cyclic rhythm of the markets, the residential sector has been
soaring for serval years. With some exceptions (e.g. Germany) the office
sector is characterised by an exchange of premises and restructuring
measures and is entering a phase of consolidation. This development has
naturally reached the investment market and will continue to provide capital
for the residential market in 2016. While this makes residential properties
a viable investment alternative, the labour-intensive management
and the danger of government regulation prevents them from becoming
a real replacement product for institutional investors. Finally, the investment
guidelines of many funds as well as the notably low gross-yield level
of residential properties will uphold the loyalty towards office buildings.
2
The strengths of the domestic market are its stability, the substantive
quality of construction and - in the office sector - a healthy
balance between demand and supply. Weaknesses manifest themselves
in the market‘s lack of transparency, the risk of government intervention
in the shape of regulations and in locational disadvantages
caused by the high tax burden and the amount of paperwork - international
corporations are wary of the latter in particular.
TOP Trend: Risk-and-return oriented investors enter the value creation
chain earlier in the light of yields of „Standing investments“ hitting
record low levels.
Michael Ehlmaier
EHL Immobilien
1
The creation of living space in large cities on the basis of progressing
urbanisation constitutes one of the biggest challenges of our time and
leads to an extremely interesting situation in the investment sector.
Demographic fundamentals, driven by domestic and cross-border migration,
substantiate the sustained demand for new residential construction,
which attracts investors. Due to significantly lower yields, we will see
prudent investments into residential properties as well as an unbroken
interest in high-volume office spaces, where the higher vacancy risk
determines the price structure and resulting yield figures.
2
For many years, the stability and transparency of the Austrian property
market has been the crucial motivation for foreign investors.
This fact not only motivates German buyers, but also an increasing
number of investors from the middle and far east, to engage with the
Viennese market. The flip-side of this development is the difficulty of
achieving short-term increases in value, which keeps more opportunistic
buyers away. In the future, the focus will shift to categories off the beaten
track, such as student accommodation and hybrid centres in the retail
sector.
132 ImmoFokus Austria | MIPIM 2016

Daniel Jelitzka
JP Immobilien
1
No, office properties are still fetching higher yields than residential
ones, which makes the market for office real estate more volatile
and dynamic. I would classify residential properties as good additions to
a portfolio, because they ensure a moderate yield and hence appeal to
more defensive investors.
2
The biggest strength of the Austrian market, 90% percent of which
lie within the boundaries of Vienna, is its stability. The only weakness
is the strong focus on Vienna.
Within the next few years, the office market will see a concentration on a
handful of locations (Südbahnhof, Donauplatte), which will increase the
number of old-stock office buildings on the market. These are perfectly
suited to refurbishment or conversion for residential use - in my opinion,
this will be the prevalent trend of the coming years.
Stephan Langer
Deloitte Austria
1
The statutory rent regulations and large amount of social housing
act as a dampeners for the appeal of the Austrian residential property
market for national and international investors. Consequently, a shift
of investor interest from office properties towards residential objects is
not expected.
2
The Austrian property market has performed solidly during the last
decade and is therefore regarded as a „ safe haven“ by investors. A
weakness of the market is the price rises for residential properties during
the last years, especially in Vienna.
The limited supply of prime retail and office objects faces the increasing
demand of institutional investors. In order to achieve the required yield
rates, a tendency towards non-prime location is becoming evident. This
trend will continue, unless the capital and investment markets change
significantly.
Richard Lemon
DPC Consulting
1
Overtaking sounds a little harsh. We do notice a change in the requirement
profiles of our partners, due to the continuous downward
pressure on yields, but the majority is staying true to the classic office
investment. The increased demand of mixed-use properties is a signal
to the construction industry, something that would have been unimaginable
a few years ago.
2
The strength of the Austrian market clearly lie in its crisis resistance.
It has proved to be a safe haven even in times of historic financial
crisis. This is reflected within the domestic market in acquisitions by international
investors. We would like to say that they are no weaknesses,
however, by international comparison, the Austrian market is overregulated.
MIPIM 2016 | ImmoFokus Austria
133

Wordrap
Alfons Metzger
RG Metzger Realitäten Beratungs- und Bewertungsgesellschaft Ltd.
1
Yes, that seems to be the case at the moment. However, there is
a constant up and down for both residential and office properties.
Currently, the office market is a challenge.
We are noticing extremely dynamic price rises in the residential sector,
to a degree where affordability becomes a real issue. We will not see
a change here any time soon, since the available office spaces have
already been utilised by the market. Of course, both of these issues
have a connection to interest rate development and market activity.
2
The problem of the Austrian property market is that it is made up
of a single location - Vienna. Secondary markets, e.g. the provincial
capitals, are only of interest to national investors, but have no relevance
on an international scale.
In Germany we are currently watching a trend towards secondary and
tertiary markets, because demand is very high there and sales are still
offering fair yields. Another difficulty of the market is the concentration
of so-called property experts in Vienna, which leads to reduced quality
in the consulting area. Despite an increasing range of university courses
and training schemes, we are not seeing any significant improvement in
the service quality. This mainly has to do with the fact that the real estate
business requires a lot of experience - and consultancy courses can only
offer theoretical knowledge.
Eugen Otto
Otto Immobilien
1
Yes and no. The demand for residential properties - also in large
volumes - remains massive, caused by increasing urbanisation. Nevertheless,
Austrian and Viennese office properties are still at the top of
institutional investor‘s „shopping lists“, because they can expect good
yields here. I believe this trend will continue.
2
Compared to the rest of Europe, the Austrian property market
stands out because of its political and economic stability. A major
weakness, in my opinion, is the obscure and precarious tenancy law. If arranged
index adjustments are simply called off, this will act as a deterrent
for potential investors. A massive trend in connection with the growing
population in Vienna is the creation of new ways of living, for example
„Silver Agers“ (50 years and older) and living in tower blocks.
Michael Pisecky
sREAL Immobilienvermittlung
1
Only an adequate supply ensures affordable living. In many countries,
the market is over-regulated, which leads to scarcity and consequently
makes investments to boost supply unprofitable. Investors need to be
given security and assurance instead of knee-jerk legislation; otherwise
investments will go to the gastronomy, retail, office and hospitality sectors
rather than the residential market.
2
Weaknesses: Excessive regulation, high construction costs due to
rules and restrictions, no master plan for adequate housing, too little
redevelopment
Strengths: dual system of subsidised and private housing, healthy mix of
freehold and rental use, outstanding quality of living
Top trend: A comprehensive master plan for the creation of an adequate
and affordable property supply is needed. This must include investment
incentives, post-compaction in cities and improved, equitable tenancy
legislation.
134 ImmoFokus Austria | MIPIM 2016

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Wordrap
Andreas Ridder
CBRE Ltd.
1
A general trend is the sustained demand of properties - this has a direct
link to increasing wealth, growing life expectancy and the resultant
pension provisions - and the fact that the „classic“ properties of institutional
investors (office, retail, logistics and hospitality) are unable to meet
market demand. Residential applications are the clear winners of these
developments, likewise areas such as student living, the health and nursing
sector, airports etc.
2
The obvious strengths of the Austrian property market are its stability
and proximity to Germany. Counting towards the weaknesses
are its relatively small size, which puts off some international investors.
This is because the expense of market entry is the same regardless of
that market‘s size and solvency for a potential sale at a later date has to
be taken into consideration. The prevailing trend of the coming years will
be the appearance of Asian investors, something that will definitely keep
the market on its toes.
Wolfgang Scheibenpflug
Vienna International Airport
1
Urbanisation is a global trend and presents challenges to many city
councils, which is why the creation of living space has become the
primary task for the property industry. Bigger investments in this asset
class will mark future developments on the international property market.
What remains to be seen is the influence of national rules regulations
on these developments.
2
The most significant challenge of the coming years will doubtless be
to further raise the appeal of Austria‘s property market. Every effort
should therefore be made to attract foreign businesses and create additional
jobs. In an increasingly competitive economic environment, it is
of prime importance to seize upon synergy effects of different economic
areas and to create a backdrop against which a coordinated proceeding
of all stakeholders is possible.
Christoph Stadlhuber
SIGNA Holding GmbH
1
Currently, there is an undeniable focus on the creation of housing
space, due to population growth, urbanisation as well as social and
individual developments. A larger amount of communal, public and private
funds are therefore invested within this sector. I would not term
this „overtaking“, but rather a wave motion. The demand for attractive,
functional and modern office spaces remains strong.
2
The strength of this market is its stability, which offers high calculability
and solid products. SIGNA is putting a strong emphasis on
tailor-made properties for major clients - currently at the Austria Campus,
for example. We are also focussing on contributing to the development
of new parts of town. At the Main Station, we are developing The Icon
Tower - a prime office property - as well as outstanding park apartments
at the Belvedere.
136 ImmoFokus Austria | MIPIM 2016

Karl-Heinz Strauss
PORR AG
1
Currently, residential properties are indeed very popular - but, as we
all know, the market regulates itself via supply and demand. I would
therefore hesitate to generalise. Office and retail properties in central
locations are still held in high esteem by investors, as are office properties
with good transport links and local retail providers at the edge
of urban centres.
2
Two features make the Austrian market as good as it is: value stability
and a low vacancy rate. Investments are therefore subject to moderate
risks - a fact that has been highly valued by international investors
in recent years, leading to a diverse investor community.
Another strength is the extensive treatment of the market, which has recently
concentrated ever more on urban centres. This increasing demand
on urban properties leads to a supply shortage, which in turn affects prices.
Even though I cannot make out THE top trend, I believe that the residential
market will continue to be a driving force. Several parallel developments
are evident: Investors increasingly pursue utility maximisation in their properties
and invest more frequently in freehold apartments. Sustainability
remains a major topic, the health and retirement provision sector are
gaining significance.
Peter Ulm
6B47 Real Estate Investors AG
1
The increasing volume of investments into residential properties anchors
these permanently in the market as a third asset class, without
overtaking office properties, however. Conversely, the office market is
in decline. While German investors don‘t scoff at residential objects in
B and C cities, the office sector sees a concentration on A and selected
B locations.
2
The stable and sustained demand on living space in major cities is a
strength of the Austrian market. The creation of an Austrian bubble
is very unlikely, given the high level of equity investment. Rising prices of
land, on the other hand, will present new challenges for developers.
In future, investment into usage-neutral development of properties will
become vital in order to shorten investment periods and lessen capital
expenditure.
Peter Vcelouch/Manfred Ton
CHSH Cerha Hempel Spiegelfeld Hlawati
1
Investments in the residential market have grown strongly in Austria,
but have not yet managed to overtake commercial properties. Institutional
investors, who make up a big share of our client base, are still very
focussed on office and other commercial properties (e.g. retail). However,
at the present time, the entire real estate market is faced with an excessive
demand.
2
On the upside, the Austrian market enjoys a stable legal framework
and an efficient judicial system, especially the court system.
However, this efficiency does constitute a weakness in the shape of
over-regulation. The current excess demand also presents challenges.
The top trend in the coming years will be the continuing creation of
affordable living space.
MIPIM 2016 | ImmoFokus Austria
137

Wordrap
Ernst Vejdovszky
S IMMO AG
1
Essentially, that depends where one wants to invest. In general,
cities like Berlin or Vienna have high migration figures, the demand
for housing will consequently rise in coming years. However, a growing
population not only needs a place to live, but also work and therefore
office spaces. In Berlin, we are currently focussing our attention on office
properties, because the potential in this sector is greater than on the residential
market, where prices are already quite high.
2
The Austrian property market is comparatively small, manageable
and stable. In the commercial sector we see a definite trend towards
new concepts and flexible work place solutions, while the residential
market shows a clear demand for small units.
Hans-Peter Weiss
Bundesimmobiliengesellschaft BIG
1
Austria‘s population is growing fast and additional housing is needed.
Investors are shifting their emphasis correspondingly. The office
property will, however, be in increasing demand due to Austria‘s position
as a service provider. Four out five businesses belong to this sector. This
why I believe that office properties are „not dead yet“.
2
A slow dwindling of properties in Austrian urban centres is leading to
a moderate price rise in comparison to the rest of Europe. A major
challenge of the coming years will be the introduction of more flexibility.
We are developing new concepts to facilitate efficient property conversions
with a modest use of resources. At the same time, we are working
towards compacting our current portfolio.
Michael Zöchling
BAR bareal Immobilientreuhand GmbH
1
There is an unaltered demand for residential properties and - in spite
of increasingly narrow markets - a continued willingness to invest
in the Austrian market. Many new investors are entering the residential
market and encounter a low supply and the yields drop. For residential
properties in excess of 10 million Euro investment volume, yields in good
locations can reach 3,75%, the prognosis for 2016 is for 3,25%.
2
Many big investors only reached 50-70% of their investment targets
in 2015. This creates a capital backlog for 2016 to which are
added the current year‘s targets. Due to the high demand and low supply
of new buildings, the prices on the investment market will rise by about
20%. The target market up to now was Germany, but since this is now
sold out, investors are switching to Austria and Vienna especially. Since
Morgan Stanley broke the ice with its acquisition of the Millennium Tower
in 2014 and Wien-Mitte in 2015, transatlantic investors have become ever
more prominent in Austria and Asian ones are set to follow. The most
exciting trend are office clusters - „The Big Four“ in Vienna are Hauptbahnhof,
Donau City, Viertel Zwei and Euro Plaza and it here that we will
see a strong focus of supply and demand.
138 ImmoFokus Austria | MIPIM 2016

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