TOM August 2018

T
TOPS
M
OF THE MONTH
O
Essential News About The Players In
The Retail Property Market In Germany
THE HOTTEST DEALS +++
PROJECTS +++ STATEMENTS
+++ INTERVIEWS +++
ANALYSES +++ NEWS
presented by HI-HEUTE.DE
AUGUST 2018
The new Schultheiss Quartier in Berlin from the outside.
Photo: HGHI
Schultheiss Quartier combines
history with the present
Successful opening of the new multifunctional shopping centre
in Berlin-Moabit – 30,000 sqm retail space
TOP
NEWS
AUGUST
On 16 August, the Berlin
real estate company HGHI
Holding GmbH opened the
multifunctional Schultheiss
Quartier shopping centre in
Berlin-Moabit, which was built
after three years on the former
site of the famous Schultheiss
brewery.
„In the heart of Berlin-Mitte,
the Schultheiss Quartier unites
all facets of urban life such
as working, shopping, staying
overnight and entertainment in
a unique ambience,“ emphasises
Harald Gerome Huth, owner
and managing director of HGHI
Holding GmbH.
The opening offers visitors a
special shopping world, in figures:
74,000 sqm gross floor
space, 30,000 sqm retail space,
15,000 sqm office space, 8,500
sqm hotel space, a 2,500 sqm
food court, a 2,400 sqm fitness
centre and 400 parking spaces
for cars. The total investment
amounts to more than 300 million
euros.
„The Schultheiss Quartier unites
past and present. Among other
things, we have transformed
the relief-like structure of the
brewery façade from the 19th
century into the present. The
Schultheiss Quartier is a space
of experience that invites you to
linger and does not commit you
to anything. It is a small city
within a city,“ says the responsible
Swiss architect Max Dudler.
During the opening week, the
new centre attracted around
20,000 visitors every day.

Page 02 T O M
NEWS AUGUST 2018
Southern Überseequartier to be
completed by the end of 2022
Major Unibail-Rodamco-Westfield project makes further progress
Unibail-Rodamco-Westfield is
developing one of the largest
and most innovative mixeduse
quarters in Europe at
Überseequartier in Hamburg.
Now the company announced
news.
The ambitious project with 14
individual buildings and an
area of 419,000 square meters,
consisting of residential, office,
retail, entertainment and a cruise
terminal, is on schedule. All
building applications have been
submitted. The excavation of
the excavation pit, the excavated
soil of which is primarily
transported by water to relieve
the traffic routes in HafenCity,
and the foundations are proceeding
according to plan. Building
construction is scheduled to begin
in the second half of 2018.
Unibail-Rodamco-Westfield announced
the opening period at
the end of 2022.
Unibail-Rodamco-Westfield plans to complete the southern Überseequartier
by the end of 2022. Photo: URW/Moka Studio
Project Rée Carrée
in Offenburg is
progressing more
and more
With a view to the design of
the future Rée Carré in Offenburg,
the old town hall, built in
1904, is now being demolished.
The former savings bank underground
car park has already disappeared
on the site. In the future,
residents of Offenburg and
visitors to the city will be able
to enjoy the new Rée Carré in
the areas of the building in the
new restaurants or shop in retail
stores in a modern ambience.
Realisation of „Neue
Höfe Herne“ begins
in autumn
The realization of the „Neue
Höfe Herne“ at Robert-Brauner-Platz
is taking shape. Yesterday
Landmarken AG, as
project developer, presented the
first two tenants for the upper
floors of the former department
store. Construction work will
also begin this autumn.
RATISBONA wants more than 30
projects completed by the end of 2018
Food markets and local supply centres currently under construction
or undergoing revitalisation - company sees great demand
Food markets and local supply
centres currently under
construction or undergoing
revitalisation - company sees
great demand
The Regensburg investor and
project developer RATISBONA
Handelsimmobilien has started
the second half of the year
with a full project pipeline. Currently,
more than 30 new food
stores as well as local supply
and specialty shopping centres
are under construction or undergoing
revitalization throughout
Germany.
These include, for example, the
Regental Center in Regenstauf,
which is currently undergoing
extensive renovation, and a modern
new local supply center
with an EDEKA and net market,
which the company is building
in the town of Gerolzhofen in
Lower Franconia. All properties
are to be handed over to the tenants
by the end of the year.
„We see a great need for more
modern food and specialist
stores throughout Germany. A
complete local supply is needed
everywhere now and also in
the future“, says Gregor Volk,
Managing Director of RATIS-
BONA Handelsimmobilien.
However, the range of goods on
offer and also the architecture
of retail properties would have
to evolve in line with consumer
demands.
he REWE store in Arrach, Bavaria, completed by RATISBONA this
year.
Photo: RATISBONA
T
TOPS
Essential News About The Players In
The Retail Property Market In Germany
IMPRINT
O M
OF THE MONTH
Publisher:
Handelsimmobilien Heute Verlagsgesellschaft
mbH
Address:
Klaus-Bungert-Str. 3
40468 Düsseldorf
Germany
Tel. 0049-2011-429967-67
Web: www.hi-heute.de
Mail: tom@hi-heute.de
Frequency of publication:
monthly
Circulation: approx. 5000 copies
sent by e-mail
Editorial team: Bettina Meirose,
Susanne Müller, Michael
Henrichs, Thorsten Müller
Responsible in terms of press
law: Thorsten Müller
Layout: K4-PR, Essen

Page 03 T O M
STATEMENTS August 2018
TOP STATEMENT
AUGUST
„From an advertising
point of view, the main
problem with shopping
centers is their seemingly
artificial insignificance.“
Roman Kaupert, Managing Partner
of the Berlin advertising agency
ZEPTER&KRONE

Page 05 T O M
STATEMENTS / NEWS August 2018
„The shopping of the future will not only take place in the
digital world or exclusively in the physical world. Real
estate must prepare itself for this new way of shopping. If
shopping is also fun and stationary retail can satisfy the
needs of the customer, then retail real estate has excellent
prospects for the future“.
Bernhard Schoofs, Managing Partner Momentum
Real Estate GmbH (Germany)
“Retail property owners and operators need to get even closer
to consumers. Their guiding principles to continuously
enhance business models and to make stationary retail
attractive in the long run are consumer expectations and
purchasing behavior.”
Christine Hager, Managing Director / Head of Shopping
Center Asset Management, redos (Germany)
Kintyre leases additional space
in Bochum‘s „Turntable
Postbank has moved into the shopping center - repositioning in progress
Kintyre Investments, a specialized
real estate investor
and asset manager, has leased
additional rental space
to Postbank in the „Drehscheibe“
shopping center in
Bochum. The company now
occupies 2200 square meters
there.
Postbank is leasing 950 square
meters on the ground floor of
the shopping center on a longterm
basis, in addition to the
1250 square meters of space it
has been using on the second
floor of the center since 2017.
Meanwhile, Kintyre had begun
the reallocation of the 12,000
square meters of space in the
shopping center.
Postbank has set up a sales center
on the rented space, which
also includes a Postbank branch
on the ground floor. The retail
space on the second floor is
used for Postbank‘s financial
advisory and real estate services
as well as by DSL Bank and the
business and corporate customer
divisions.
Kintyre has leased additional space in the „Drehscheibe“ shopping
centre in Bochum.
Photo: Kintyre
Billionaire Kretinsky
wants majority stake
in Metro
Following Haniel, Ceconomy
is also putting its stake in the
Metro retail group up for sale.
In both cases the Czech Daniel
Kretinsky is ready to invest. He
could soon hold more than 30
percent of Metro‘s shares. The
billionaire is one of the 300 richest
people in the world.
DECATHLON plans
to open 13 more
branches in Germany
in 2018
The French sporting goods
manufacturer and distributor
DECATHLON continues to
expand in Germany. A further
13 branches are to follow this
year - among others, locations
in Dresden, Leipzig, Hamburg,
Dortmund and Cologne are to
be opened. With 53 branches
throughout Germany, DECA-
THLON is currently one of
the largest and most successful
sports retailers in Germany. The
openings are expected to create
a total of almost 350 new jobs
regionally.

Page 07 T O M
INTERVIEW August 2018
Plea for a REIT fund
Interview with Thomas Körfgen, Managing Director and Head of Indirect Real Estate
Investment at Savills Investment Management KVG GmbH
Savills IM, the international
real estate investment manager,
has launched a new fund
that invests in selected REITs
(Real Estate Investment
Trusts) worldwide and aims
for a high distribution yield.
Retail real estate also plays a
significant role in the composition.
TOM editor-in-chief
Thorsten Müller spoke to
Thomas Körfgen, managing
director and head of indirect
real estate investment at Savills
Investment Management
KVG GmbH.
TOM: How did you come to
launch this new REIT fund and
how does your company define
a REIT at all?
Thomas Körfgen: According
to our interpretation, a REIT is
the liquid form of the real estate
product or core real estate. For
us, it represents a combination
of dividend income and longterm
share price growth. In other
words: a combination of the
advantages of real estate investment
on the one hand and equity
investment on the other.
REITS also achieve
diversification of
countries, regions
and sectors and
better performance
and lower correlation
compared to other
asset classes
TOM: What does that mean in
concrete terms?
Thomas Körfgen: Specifically,
this involves the distribution of
almost all income, daily liquidity,
protection against inflation
and special tax exemption
rules. But REITs also achieve
diversification of countries, regions
and sectors and, last but
not least, better performance
and lower correlation compared
to other asset classes. The earning
power of real estate and the
growth opportunities of equities
continue to be combined so well
and successfully in no other vehicle
as in REITs. We therefore
homas Körfgen, Managing Director and Head of Indirect Real
Estate Investment at Savills Investment Management KVG GmbH
Photo: Savills
believe now is the right time to
build on the previously unexploited
field and offer institutional
investors in Germany an attractive
offer in the low-interest
environment of TOM with our
globally investing REIT fund:
TOM: What exactly should the
REIT fund offer its investors and
what is its composition?
Thomas Körfgen: We are aiming
for a dividend yield of
over 5 percent per annum
(before costs). We pour out
twice a year. The first distribution
of EUR 1.25 or 2.5% with
regard to the first unit price at
the end of March 2018 (EUR
50) took place at the end of
July after only 4 months. Only
high-quality securities with a
low debt ratio, a high interest
coverage ratio and a high dividend
yield are considered for
selection. The REIT fund starts
with a 50 percent European allocation
and investments of one
quarter each in North America
and Asia-Pacific. It is currently
invested in around 25 countries
via its REIT shares. Our exposure
also consists of 42 percent
retail properties - just under
half, which is a truly significant
component. This primarily refers
to large inner-city shopping
centers.
TOM: Who is the REIT fund
specifically aimed at? Who is
the target group, so to speak?
Thomas Körfgen: The Real
Estate Securities Income Fund
- the official name of the new
REIT fund - is aimed at institutional
investors who are interested
in regular returns with low
volatility and a reasonable return.
This makes the REIT fund
a really highly attractive alternative
to dividend funds. According
to the German Commercial
Code (HGB), the flexibility of
this asset class is particularly
advantageous for German investors:
a large part of the fund
investment can be offset against
the real estate quota, the remainder
is booked as shares.
TOM: Isn‘t it also possible
to allocate 100 percent of the
shares as shares?
Thomas Körfgen: Yes, this is
definitely possible.
TOM: Does the REIT also have
advantages if I compare it with
the purchase of direct real estate?
Thomas Körfgen: In contrast
to a single property, a REIT does
not have to pay land transfer tax
and the administrative costs associated
with real estate. In return,
the investor benefits from
the flexibility of a stock and an
attractive risk diversification
across a large number of globally
scattered properties. Savills
IM has already been managing
institutional REIT mandates
since 2010, which generated an
average dividend yield of more
than 6 percent annually.
TOM: How did you structure
sales?
Thomas Körfgen: The openend
fund initially has a marketing
licence in Germany,
Luxembourg, Italy and Great
Britain. However, it will also be
distributed in other countries at
a later date. With Luxcellence
Management Company S.A.,
a renowned management company
has been selected that is
regulated by the Luxembourg
supervisory authority CSSF.
TOM: And what does your investment
process look like?
Thomas Körfgen: The focus
is on an analysis to find exactly
those companies that can really
secure the targeted returns for
us in the future. Personal discussions
with the management
of these companies are of central
importance to us. We select
REITs and REIT-like real estate
shares on the basis of a disciplined
investment process with a
conservative investment structure
and a focus on high and
sustainable dividend yields.
TOM: Do you have your own
REIT team?
Thomas Körfgen: Of course.
It consists of specialists who
have been working together in
the field of indirect real estate
investment for well over ten
years. It has many years of expertise
in capital and real estate
markets as well as in research.

Page 09 T O M
DEALS August 2018
Atrium acquires
Warsaw shopping
center for over
300 million €
Atrium European Real Estate
Limited has signed an
agreement to acquire Wars
Sawa Junior, a world-class
shopping centre in the heart
of Warsaw, for a purchase
price of 301.5 million euros.
Atrium will acquire Wars
Sawa Junior from PFCEE,
a fund managed by CBRE
Global Investors, from a mix
of existing cash and external
financing. After the transaction,
Atrium‘s loan-to-value
ratio will increase from
33.5 percent to approximately
37 percent, in line with
the company‘s expectations.
The transaction is subject to
certain conditions precedent,
which are expected to be met
in the fourth quarter of this
year.
CINTHIA buys 7
retail properties in
one go
CINTHIA Real Estate is expanding
its commercial portfolio
by purchasing seven
retail properties at promising
locations. The developable
properties with a total rental
area of around 7,500 sqm
are located in medium-sized
German cities outside the
major cities. The properties
were sold as part of a strategic
realignment of VOS
Investment. With the purchase
of the seven properties in
Zwickau, Eisenhüttenstadt
and Rodgau, among others,
CINTHIA is continuing its
successful strategy of focusing
on developable commercial
properties with yield
potential outside the major
cities.
Wealthcap sells
shopping center
„The Castle“
Wealthcap has sold the „Das
Schloss“ shopping centre
to Deka Immobilien. The
parties have agreed not to
disclose the purchase price.
Mediated by JLL. „The
„Schloss“ is one of the most
established shopping centers
in Berlin with a very high visitor
frequency in the district
of Steglitz on Schlossstrasse,.
Timpani bang at GRR Group:
42 objects purchased
Retail real estate in nine federal states
he GRR Group launches its
new German Retail Fund No.
3 for retail properties with a
bang for the buck. The company
has acquired a portfolio
of 42 food stores and discounters
in nine different German
states for around 150 million
euros - the largest property
acquisition in the company‘s
history.
Seller is an institutional special
AIF of Universal-Investment.
The parties have agreed not to
disclose further details of the
transaction.
„With the launch of the third
fund and the acquisition of this
comprehensive start-up portfolio,
the GRR Group underlines
its position as one of the leading
companies in Germany specialising
in retail real estate. In a
demanding and highly competitive
market environment, our
focus on the basic retail segment
CBRE acquires Hamburg‘s
Hanseviertel district
One of the most popular shopping destinations in the historic city centre
CBRE Global Investors has
added the Hanseviertel in the
historic centre of Hamburg to
its portfolio. The company acquired
the mixed-use property
from Allianz Lebensversicherungs-AG
on behalf of one of
its funds.
With a total rental area of around
38,850 square meters, the Hanseviertel
consists of a shopping
arcade, several retail units, a Renaissance
Hotel of the Marriott
Group, 14,400 square meters of
office space and 15 apartments.
The building complex is almost
fully let, with retail space accounting
for around 40 percent
of total rental income.
The main tenant of the office
space is the city of Hamburg
with more than 6000 square meters.
The portfolio includes the net store in Coswig near Dresden. Photo:
GRR Group
Photo: PATRIZIA
and our extensive experience in
managing and upgrading assets
enable us to achieve outstanding
economic results for our
investors,“ explains Susanne
Hamburg‘s Hanseviertel is now under the auspices of CBRE Global
Investors.
Photo: CBRE Global Investors
The Hanseviertel also has a public
underground car park with
440 parking spaces, which is
operated by APCOA. For the
Klaußner, CEO of GRR Group.
„The investment phase for the
third fund began in spring 2018.
Further equity subscriptions will
continue to be accepted.“
tenants there are another 160
parking spaces in an additional
underground garage and in the
inner courtyard.

Page 11 T O M
NEWS August 2018
Trei Real Estate: ninth
VENDO PARK in Poland
Total investment of 5.7 million euros - expansion planned
Trei Real Estate GmbH is further
expanding its Polish retail
portfolio: The real estate
subsidiary of the Tengelmann
Group opens its ninth Polish
specialist store in Chodzież
under the umbrella of the
VENDO PARK brand.
On a total of 4150 square metres
of rental space, the new
specialist store offers a versatile
dealer structure and brand
world. In addition to the electronics
retailer Media Expert,
the property includes various
suppliers in the clothing and
sports sector, including Takko
and KiK, both textiles, Martes
Sport and 4F, both sporting
goods, as well as Pepco with
non-food, the drugstore Hebe
and a bakery. The total investment
in Chodzież amounts to
5.7 million euros. Trei plans to
keep the property in stock for
the long term.
Sonae Sierra and Bluehouse:
new outlet in Larissa
Greece gets a new fashion and entertainment project
The Fashion City Outlet in
Larissa is the first outlet center
in the Greek region of
Thessaly. The centre presents
a wide range of fashion and
entertainment for the inhabitants
and visitors of the region
around the cities of Larissa,
Karditsa, Trikala and Volos.
The new outlet center is being
developed by Sonae Sierra, an
international retail real estate
company specializing in the
needs of investors, and Bluehouse
Capital, an investment
management company focused
on the development of real estate
investments. Both companies
have extensive experience in
the development and management
of purchasing and entertainment
projects in Greece and
18 countries worldwide.
TThe new VENDO Park of Trei Real Estate GmbH opens in the
Polish Chodzież.Visualization: WOZNIAK PROJEKT Pracownia
Architektury i Projektowania Robert Woźniak
Sonae Sierra and Bluehouse are developing the Fashion City Outlet
in the Greek region of Thessaly. Visualization: Sonae Sierra
CEV takes over
management of
Dresden Karree
CEV Handelsimmobilien
GmbH has been mandated by
the Munich Hirmer Group to
manage the dresden.karrees
centre in the capital of Saxony.
The Hamburg-based service
provider is thus continuing
its growth course in shopping
center management. After two
years of revitalization, the former
Gorbitz Center will reopen
in autumn 2018 under the
direction of the CEV. Lots of
glass and a friendly colour concept
as well as varied shopping
possibilities, extended service
and even higher quality of stay
round off the new concept. As
part of the complete renovation,
the mix of sectors and tenants
was specifically optimised: In
addition to the new anchor tenants
Kaufland, Rossmann and
Woolworth, ten other retailers
are moving into the fresh space.
A new food court is in the spotlight
on the ground floor. The
local supply offer of the district
is rounded off by the settlement
of medical practices and offices.
HIH Property
Management celebrates
130th birthday
HIH Property Management
GmbH (HPM) is celebrating its
130th anniversary. It is one of
the few companies in Germany
that has accompanied and
shaped commercial property
management for more than a
century. „Our company‘s history
is representative of the transformation
from asset-preserving
administration to user- and future-oriented
management,“ says
Managing Director Thomas
Junkersfeld. „Under the name
Johs. Reese & Co, the company
started in 1888, the year in
which the Hamburg Freeport
was opened, as a family-run
property management company
and operated this business over
two world wars, several economic
crises and reconstruction.
Since the 1970s, this activity
has been supplemented by the
management of commercial real
estate. Today HPM is represented
at seven locations in all top
German cities. The 190 employees
manage a portfolio of
390 properties with a total value
of over 7 billion euros.

YOU TAKE YOUR TIME.
WE TAKE AWAY YOUR STRESS.
At Your Service: ECE‘s holistic approach brings customer services to a whole new
level. Based on the findings of a comprehensive study, ECE has analyzed its centers
to highlight the services on site, optimize them according to their needs, and
complement them perfectly. In a first phase, 160 million euros will be invested
into 60 shopping centers by 2020. For more information, go to www.ece.com.

Page 13 T O M
ANALYSES
August 2018
Short distances and diversity
convince shopping center customers
Representative survey by Forsa on behalf of JLL
For 80 percent of consumers,
accessibility and variety of
shops are the most important
criteria for the success of a
shopping center. This was the
result of a representative survey
of more than 1000 regular
center visitors by Forsa on behalf
of JLL.
Customers are not restricted to
one center, but visit an average
of four different centers within a
year. For most people, the overall
concept counts - only twelve
percent go to a specific center
because of a specific store.
Many shops in one
place
Proximity is a decisive criterion:
56 percent prefer centers that
they can reach within 20 minutes,
for 80 percent of respondents
the limit of reasonableness
is 30 minutes. Once you arrive
at the center, your stay must be
worthwhile: Only a fraction remains
there for less than 30 minutes,
while more than a third
remains there for up to one hour.
The availability of many shops
in one place also counts. On
average, visitors from smaller
towns of less than 20,000 inhabitants
stay longer than people
from large cities.
Gastronomy is in
demand
The range of fast food and cafés
is particularly appreciated. Detailed
or upscale food is less in
demand. In general, visitors are
satisfied with the gastronomic
offerings in the centers. However,
if something is missing, it is
usually the opportunity to have
a drink with friends over small
snacks.
Likewise, around half of all respondents
see a backlog in the
supply of regional products,
while visitors between the ages
of 30 and 44 mention a lack of
childcare. Younger respondents
between 18 and 29 years focus
on leisure activities such as
bowling alleys.
Among other things, the variety of stores convinces customers to visit a shopping center.
Symbol image: Pixabay / webandi
Gaps in the digital
domain
Meanwhile, clear gaps are identified
in the digital area: two
thirds of visitors do not even
know whether their center offers
an app for example. If there is
such a thing, however, it hardly
meets with encouragement: only
twelve percent of those use it.
However, it would call up considerably
more if it were possible
to display not only shop opening
hours and a map, but also the
goods of individual shops and
reserve them for collection in
the centre.
Low transaction
volume
On the investment market for retail
real estate, shopping centers
are meanwhile passing through
a low in terms of transaction volume.
The asset class achieved
only 470 million euros in the
first six months of 2018 - more
than ever before. The reasons:
The shopping center asset class
is viewed more critically than
just a year ago, particularly with
regard to the development of
rents. Acquisitions are examined
noticeably more closely and
delay the transaction processes.
At present, properties are being
marketed for around 1.5 billion
euros.
In total, there were 13 transactions
in the first half of the
year, compared with 25 at the
same time last year. The number
of major transactions in the
three-digit million range also
fell from three to one. And ultimately,
the average transaction
volume also fell from 51 to 36
million euros.
Meanwhile, the top yield remains
at 3.90 percent, as prime
products in particular are still in
high demand.
The Forsa Institute had interviewed
people by telephone who
use a shopping centre at least six
times a year.
Outlet Center in
Europe remains a
growth market
The number of outlet centers
in Europe continues to rise.
In the past twelve months, the
number of centers in operation
grew by four to 175 locations
and the outlet sales area increased
by almost 100,000 square
meters, which corresponds to
the size of nine football pitches.
These are the results of the latest
market study just published
by the Wiesbaden-based research
institute ecostra.
The strongest outlet growth during
this period was recorded
in France and Italy, but several
new outlets were also opened
in Spain and the Czech Republic.
According to the ecostra market
researchers, this development
will continue in the coming
years.

Page 15 T O M
INTERVIEW August 2018
Repositioning will be a
top topic in the coming years
Double interview with Martin Mörl (Prelios) and Thorsten Krauß (UndKrauss)
he last and next years are no
longer characterized by numerous
new developments of
shopping centers, but rather
by refurbishments and revitalizations.
„Repositioning“
is the magic word here. TOM
editor-in-chief Thorsten Müller
spoke to the specialists
Martin Mörl (Prelios Immobilien
Management GmbH) and
Thorsten Krauß (UndKrauss
Baugesellschaft).
TOM: One could get the impression
that the number and scope
of repositionings have increased
significantly in recent years. Is
that impression correct?
Martin Mörl: „Yes, this impression
is correct. Repositioning
is increasing significantly. The
enormously increased expectations
of customers with regard
to product range and quality of
stay are a massive driver. The
customer appreciates varied
gastronomy, certain ranges and
services, short distances, a lot
of information and service. In
addition, there is the obsolete
stock of retail properties in Germany,
ever shorter modernization
cycles and the great interest
of investors. Besides value-add,
repositioning will undoubtedly
be a top issue in the coming
years.“
Thorsten Krauß: „I can only
agree. We alone currently have
three parallel refurbishment
projects in the shopping center
sector. We expect further orders,
because inner-city space for
new retail properties is scarce
and hardly any new shopping
centres are coming onto the
market. Since more than half of
the 550 centers currently in Germany
are more than 20 years
old, the revitalization backlog
will remain.“
TOM: When does a retail property
need to be repositioned?
What do you do with objects
that you can no longer adapt to
today‘s expectations?
Thorsten Krauß: „If you register
continuously decreasing
customer frequencies and sales
over several years, it‘s time to
act. At the same time, repositioning
is not always the result
Martin Mörl, Managing Director
of Prelios Immobilien
Management GmbH.
Photo: Prelios
of a need for remediation. In
Darmstadt, for example, we carried
out a refurbishment of an
inner-city shopping center a few
years ago, initially only for fire
protection reasons. Due to the
central location, comparatively
low local competition and the
established brand, there was no
need for a long time to put the
center in a modern state“.
Martin Mörl: „There is a need
for action if customers and tenants
stay away. As I said, customers‘
expectations are high
and they are not prepared to
compromise. We are convinced
that almost all retail properties
can be repositioned if the
fundamentals are right. If these
are not correct, conversions
and complete conversions, for
example to residential or office
use, are often the better solution.
Co-working, for example, is
a serious alternative, especially
for the upper floors suffering
from frequency loss“.
TOM: Modernizations are very
often associated with major
structural and design changes.
Are there any particular trends
here?
Martin Mörl: „Essential and,
in my opinion, sustainable
trends are clearly gastronomy,
local supply, fresh food, health
as well as complementary uses
that attract and retain customers,
such as leisure and sports
activities, medical practices or
day care centres. Today, it is
impossible to imagine design
without an individual and site-appropriate
approach. In the
Husum Shopping Center, which
we are currently developing and
then managing on the Wadden
Sea, we have, for example, the
layout Beach House, which
takes up and reflects numerous
regional influences.
Thorsten Krauß: „The trend
is towards open centers in the
sense of a shopping plaza. In
general, the shrinking rental
space in modern centres reflects
the retail situation in European
cities. Here you usually have
many small-scale offers. The
large US-American malls fit
very well with the culture of the
United States, but we are used
to narrow alleys in historical
city centres“.
Thorsten Krauß, CEO of
UndKrauss Baugesellschaft.
Photo: Josef Fischnaller
TOM: Refurbishments entail
a lot of effort for tenants and
many restrictions for customers.
How do tenants and owners
face repositioning?
Thorsten Krauß: „Extensive
repositioning usually requires
the closure of the center. Refurbishment
measures, on the
other hand, can be carried out
without any problems during
ongoing operations. With our
construction team we then have
night shifts between 8 p.m. and
6 a.m. here. In addition, we can
ensure short project times using
the‘design & build model‘:
Then we not only act as general
contractor, but also provide
our own planning services or
coordinate a construction team.
Through teamwork from the initial
concept to turnkey delivery,
you can save up to 40 percent on
project costs“.
Martin Mörl: „Traders need
sales potential, owners need stable
cash flows and value retention.
Today, this requires a lot
of effort, and most tenants and
owners know that too. Repositioning
can increase location
potential, make weak properties
fit again and stop downward
spirals. It is true, however, that
in some cases the owner must
be very persuasive. In our experience,
repositioning works very
well when the service areas of
letting, center, property and asset
management as well as marketing
and communication are
closely interlinked“.
TOM: Great importance is attached
today to digital furnishing
of retail properties. Which elements
are standard today, and
which are not needed?
Martin Mörl: „Today, direct
communication with customers
is an indispensable success criterion.
We therefore pay attention
to a foreseeable multi-channel
strategy for tenants and
support them in participating in
corresponding developments.
Nevertheless, you also need a
coherent, site-appropriate and,
if possible, online-resistant overall
concept so that shopping
centers etc. work for tenants,
customers and owners. „They
won‘t get far if they don‘t have
Wi-Fi.“
Thorsten Krauß: „Well, center
apps, high-speed WLAN and
charging stations are now an
integral part of modernizations.
In addition, there is the trend
to combine the useful with the
pleasant: For example, couches
created in new lounges can be
equipped with sockets, USB
connections and charging stations.
I doubt whether 3D navigation
via app with digital route
markers is really needed.“

Page 17 T O M
GRAPHIC OF THE MONTH August 2018
For stationary retail sales, nominal sales growth of +2.1%
is expected in the 28 EU states in 2018. The winners are in
particular Romania (+7.5%), Estonia (+6.8%) and the Czech
Republic (+6.5%). Growth is also forecast for the other EU
countries, with stationary retail sales in the United Kingdom
rising only slightly by +0.1%. These are some of the many
findings from our recently published study „Retail Europe
2018“, which examines numerous retail trends and includes a
forecast for 2018.The graphic shows the 2018 forecast growth
in stationary retail sales for the countries under review.

Page 19 T O M
NEWS August 2018
Alexanderhaus in Berlin-Mitte
lives on new brands
CENTRUM Group redesigns listed building
The listed Alexanderhaus
on Alexanderplatz in Berlin-Mitte
is once again transformed
into an inviting office
building. The CENTRUM
Group from Düsseldorf has
completely redesigned the retail
space.
The entrances to the shops were
moved to the outside. The previously
introverted mall character
is giving way to an opening,
so that all shops are now accessible
from Alexanderplatz, Dircksenstrasse
and Grunerstrasse.
At the same time, the three
business floors have been given
a fresh design.
With the revitalisation of the
Alexander House, the CENT-
KGAL enters its anniversary
year with record results
The company has been growing for 50 years
The KGAL GmbH & Co. KG
celebrated its 50th anniversary
on August 27. The company
started operating as a leasing
company in 1968.
Over the years, it has developed
into one of Europe‘s leading
investment and asset managers.
KGAL offers investment
opportunities in long-term real
capital investments in the asset
classes real estate, infrastructure
and aircraft.
Continuously
reinvented
RUM Group has implemented
modern shopping concepts.
Young fashion and brand stores
in particular will ensure a lively
tenant mix. The first stores
have been completed, further
openings will take place in the
course of this year.
With newly designed retail space, the CENTRUM Group is revitalizing
the Alexanderhaus on Berlin‘s Alexanderplatz.
Visualization: CENTRUM Group
Gert Waltenbauer, CEO of
KGAL GmbH & Co.
Photo: KGAL
„We have continuously questioned,
changed and reinvented
ourselves,“ explains Gert
Waltenbauer, CEO of KGAL
GmbH & Co. KG. In doing so,
the company takes up current
market requirements and future
trends. KGAL remains true
to its concentration on investments
in tangible assets.
The company started its anniversary
year with record results.
In 2017, the volume of new
business amounted to around
2.8 billion euros. This represents
a year-on-year increase
of 47 percent (2016: 1.9 billion
euros). Gert Waltenbauer: „We
are well equipped for the next
50 years and will consistently
continue our development.
Implementing new
business initiatives
In its anniversary year, the
KGAL Group is implementing
numerous business initiatives.
For example, the subsidiary
physible GmbH starts retail
sales of investment products
via an online platform. The
KGAL New Frontiers GmbH
& Co. KG invests in new regions
such as in an Eastern European
hydropower operator. And
KGAL is expected to launch an
open-ended real estate fund for
private investors at the end of
the year.
Gert Waltenbauer: „Real assets
are interesting for private customers.
But there are few offers.
We‘ll fill that gap.“
Deutsche EuroShop
posts moderate
growth in the first
half of the year
In the first half of 2018, shopping
center investor Deutsche EuroShop
generated revenue of €111.6
million (+5.5% year-on-year)
and an almost equally strong increase
in net operating income
(NOI) to €100.5 million. EBIT
improved by 6 % to Euro 98
million. This growth was mainly
characterised by the Olympic
Centre Brno, which has been
included in the Group since 31
March 2017. The existing portfolio
also made a positive contribution
to growth with higher sales
(+0.4%). Earnings before taxes
and net of measurement gains
and losses rose from EUR 73
million to EUR 78.9 million, an
increase of 8 percent. In contrast,
the consolidated result decreased
by 1.7 % to EUR 55.3 million
due to the valuation result.
Merger of department
stores apparently
nearing completion
According to reports in the FAZ
and Manager Magazine, the merger
between the two department
store giants Karstadt and Kaufhof
could be perfect in just two
weeks. It is probably only about
details, which revolve especially
around the real estate. In the
context of the agreement, the
stock guarantee for the Kaufhof
department stores is also mentioned.
The only exceptions are the
nine houses whose rental contracts
are about to expire.
German REIT
consumer spending
continues to grow
Deutsche Konsum REIT-AG
continued to grow in value in
the first nine months of fiscal
2017/2018. Compared to the
same period of the previous
year, the company‘s rental income
increased significantly by
52 % to EUR 20.9 million (previous
year: 13.8 ). The funds
from operations („FFO“) derived
from this rose even more
strongly by 61 % to EUR 11.4
million. (previous year: 7.1).
This shows once again the profitable
growth of the company,
which is monetized by economies
of scale in the course of
further portfolio expansion.

Page 20 T O M
NEWS August 2018
PATRIZIA acquires office building
in busy London location
i
First-class real estate investment in the Hammersmith district
PATRIZIA Immobilien AG
has acquired a flagship retail
property in a sought-after district
of London for one of its
pan-European funds.
The seller is Alanis Capital. The
purchase price is EUR 24.6 million.
The property is located at
49-63 King Street in Hammersmith.
The property is the fund‘s
first investment in the UK and
underlines its strategy of investing
in selected retail sectors.
PATZRIZIA Immobilien AG has acquired a retail property in London.
Photo: PATRIZIA
Sonae Sierra wins Business Award
Sonae Sierra has won the Silver
Stevie Award in the category
„Energy Industry Innovation
of the Year“ at the
15th International Business
Awards.
With the Bright Programme, the
company was able to implement
concrete improvement measures
in its own portfolio, reduce general
energy consumption, significantly
reduce its ecological
footprint and maintain or even
improve the service level for
tenants and visitors alike. The
winners were determined on the
basis of the evaluations of the 12
juries with a total of 270 members.
The German
purchasing power
magnets
The cooperation between BBE
Handelsberatung, CIMA and
MB-Research has jointly published
the current indicators
of retail centrality. Bremen still
leads the ranking of the city
states, followed by Hamburg.
Passau defends the first place
of the districts and independent
cities. With regard to the municipalities,
the Baltic island of
Fehmarn stands out above all. It
has the highest centrality in the
ranking (513.9), followed by the
small town of Mühlheim-Kärlich
in Rhineland-Palatinate
(478.9) and Bad Segeberg in
Schleswig-Holstein (457.2). At
the state level, Bremen (121)
and Hamburg (113.1) have the
highest purchasing power concentration.
Stuttgart leads the
ranking of the seven largest cities
in Germany with 122 points.
Düsseldorf (118.1) follows in
second place, Munich and Cologne
(114 each) share third place.
„The analysis of the retail centrality
indicators shows that
three factors favour the attraction
of external purchasing
power: location close to the
border, rural surroundings and
tourism,“ explains BBE expert
Markus Wotruba.
CORESTATE announces
outstanding half-year results
CORESTATE Capital Holding
S.A. grew significantly
organically in the first six
months of the year, increasing
assets under management in
its core real estate business by
around EUR 900 million.
Dr. Michael Bütter, CEO: „We
are pleased with the very good
business development throughout
the Group, especially at
our subsidiaries Helvetic Financial
Services (HFS) and Hannover
Leasing, which will make
sustainable and stable contributions
to earnings with their
specialised business models following
the acquisition in 2017.
Our comfortable „pipeline“ of
potential transactions of around
5.7 billion euros is a cornerstone
here.
Major tender: Union Investment
awards 150 management contracts
As a result of a major tender,
Union Investment has awarded
new property management
contracts for 150 commercial
properties from its German
portfolio. The 120 office and
commercial buildings and 30
hotels cover a rental area of two
million square metres, have an
expert value of around seven
billion euros and are spread
over locations throughout Germany.
After a transparent and
far-reaching evaluation process
in which 25 potential property
management partners were examined,
the Hamburg real estate
investment manager has decided
on a new „2+2“ service provider
strategy. Strabag Property and
Facility Services GmbH with
49 properties and Apleona Real
Estate GmbH with 45 properties
will manage the largest shares of
the tendered portfolio in future.
Engel & Völkers looks
back on 40 years of
success story
The success story of Engel &
Völkers began with a small villa
on Hamburg‘s Elbchaussee.
This year the real estate company
celebrates its 40th anniversary.
In 1977 Dirk C. Engel
founded a brokerage firm in
Hamburg. Four years later, his
friend, the student Christian
Völkers, became his partner.
Their first joint office was in a
villa on the Elbchaussee, whose
façade is still an integral part of
the brand logo today.
From here they developed a real
estate company that changed
the industry from the ground up.
Through innovative marketing
concepts and expansion strategies.
Today, the company is present
in over 30 countries on four
continents. More than 10,000
people work under the brand.
Since October 2014 Christian
Völkers has shared the chairmanship
with Sven Odia, who
began his career at Engel &
Völkers as an apprentice.
BMO almost 3 billion
euros in assets
under management
BMO Real Estate Partners Germany
can look back on a dynamic
first half of 2018. During
this period, the company increased
its assets under management
(AuM) to almost three
billion euros. This corresponds
to growth of around 20 percent
compared with the same period
last year.
The company completed real
estate transactions totalling
EUR 691 million in the first half
of the year, consolidating its
position as an active asset and
investment manager.
New HAHN mutual
fund launched
The Hahn Group has launched
a new closed public AIF via its
capital management company
DeWert Deutsche Wertinvestment
GmbH. The German Federal
Financial Supervisory
Authority (BaFin) recently approved
the distribution of these
products. The HAHN Pluswertfonds
172 real estate fund invests
a total volume of around
24.4 million euros in a hypermarket
in Witten (NRW).