CAG ENG Gesch−ftsbericht 98 - CBB Holding AG
CAG ENG Gesch−ftsbericht 98 - CBB Holding AG
CAG ENG Gesch−ftsbericht 98 - CBB Holding AG
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Annual Report 19<strong>98</strong>
Concordia Bau und Boden <strong>AG</strong> – Key Figures<br />
Capital reserves and other items with an equity character<br />
Capital and reserves<br />
Liquid funds<br />
Units 1993 1994 1995 1996 1997 19<strong>98</strong><br />
Result from<br />
ordinary activities million DM 40,8 33,4 -108,4 -124,7 -54,4 -49,5<br />
Unappropriated profit/accumulated/<br />
deficit/deficit brought forward million DM 24,6 29,1 -58,3 -119,2 -119,2 -117,9<br />
Dividends per DM 50/DM 5 share DM 24,0 1) 1,4 2) - - - -<br />
Bonus shares million DM 14,1 15,0 - - - -<br />
Subscribed capital million DM 35,9 50,0 65,0 65,0 180,0 180,2<br />
1) including DM 10,00 bonus for scattered holdings 2) per DM 5,00 share<br />
1994 1995 1996 1997 19<strong>98</strong><br />
million DM million DM million DM million DM million DM<br />
Cash at banks and in hand 175,6 167,2 315,2 260,6 268,2<br />
Deposits as collateral for advanced payments<br />
received and bank loans and overdrafts 146,1 149,3 239,1 258,3 267,2<br />
Results, dividends and share capital<br />
2<br />
1994 1995 1996 1997 19<strong>98</strong><br />
million DM million DM million DM million DM million DM<br />
Subscribed capital 50,0 65,0 65,0 180,0 180,2<br />
Participating rights capital - - 138,6 70,9 70,9<br />
Capital and revenue reserves 10,0 26,3 26,3 73,3 73.7<br />
Unappropriated profit/accumulated 29,1 -58,3 -119,2 -119,2 -117,9<br />
deficit/deficit brought forward<br />
Total capital and reserves 89,1 33,0 110,7 205,0 206,9<br />
Other items with an equity character<br />
Reserves for tax purposes 12,0 11,0 2,0 1,6 1,4<br />
Provisions for pensions, mining damages etc. 40,0 40,0 40,0 40,0 25,0<br />
Other risk provisions 50,0 100,0 90,0 45,0 35,0<br />
Debenture with share option - 150,0 150,0 110,0 216,0<br />
Total other items with an equity character<br />
Grand total of capital and reserves<br />
102,0 301,0 282,0 196,6 277,4<br />
and other items with an equity character 191,1 334,0 392,7 401,6 484,3
Company Boards and Committees 4<br />
Report of the Supervisory Board 6<br />
Report of the Board of Directors 10<br />
Strategic orientation 10<br />
Corporate performance 20<br />
Project Development Division 24<br />
Real Estate Administration Division 30<br />
Real Estate Funds Division 38<br />
Participations 40<br />
Employees 42<br />
Outlook 44<br />
Management Report 19<strong>98</strong><br />
Concordia Bau und Boden <strong>AG</strong> 49<br />
Financial Statements 19<strong>98</strong><br />
Concordia Bau und Boden <strong>AG</strong> 53<br />
Management Report 19<strong>98</strong><br />
Group 67<br />
Financial Statements 19<strong>98</strong><br />
Group 71<br />
The picture on the cover shows the façade of the newly built office/business and hotel centre “Alte Post” in Dortmund<br />
Contents<br />
3
Company Boards and Committees<br />
Supervisory Board:<br />
Ulrich Hocker, Düsseldorf<br />
- Chairman -<br />
4<br />
Supervisory Board seats:<br />
Brau und Brunnen <strong>AG</strong>, Dortmund<br />
DSL <strong>Holding</strong> <strong>AG</strong>, Bonn<br />
Gerresheimer Glas <strong>AG</strong>, Düsseldorf<br />
Karstadt <strong>AG</strong>, Essen<br />
VEBA <strong>AG</strong>, Düsseldorf<br />
Dr. Ottokarl Finsterwalder,<br />
Vienna, Austria<br />
- Vice Chairman -<br />
Supervisory Board seats:<br />
Eckes <strong>AG</strong>, Nieder-Olm<br />
Rolf Austel, Lohmar *<br />
Jean-Paul Dumortier, Paris, France<br />
(until 4 September 19<strong>98</strong>)<br />
Rolf P. Erb, Winterthur, Switzerland<br />
Carola Hahn-Szep, Cologne *<br />
(until 23 July 19<strong>98</strong>)<br />
Klaus von der Heyde, Berlin<br />
Supervisory Board seats:<br />
GeSoBau Gesellschaft für sozialen<br />
Wohnungsbau gemeinnützige<br />
Aktiengesellschaft, Berlin<br />
KapHag, Berlin<br />
Dr. Rainer C. Kahrmann,<br />
London, Great Britain<br />
Dr. Hanno Marquardt, Bonn<br />
(w.e.f. 30 July 19<strong>98</strong>)<br />
Supervisory Board seats:<br />
Felten & Guilleaume <strong>AG</strong>, Cologne<br />
Allerthal-Werke <strong>AG</strong>, Grasleben<br />
Rheiner Moden <strong>AG</strong>, Rheine<br />
Karl-Heinz Notthoff, Niederkassel*<br />
Helena Rohde, Cologne*<br />
(28 August 19<strong>98</strong> – 23 February 1999)<br />
Gero Spellerberg, Cologne *<br />
Dr. Hans F. Vögeli, Winterthur,<br />
Switzerland<br />
(until 31 March 19<strong>98</strong>)<br />
Dr. Peter von Woedtke, Meerbusch<br />
(w.e.f. 30 July 19<strong>98</strong>)<br />
* Employee representative<br />
Board of Directors<br />
Kay Vogel, Düsseldorf<br />
- Chairman -<br />
Franz C. Ditterich, Cologne<br />
(w.e.f. 1 February 19<strong>98</strong>)<br />
Gabriele Ronge, Berlin<br />
(1 February 19<strong>98</strong> – 31 January 1999)<br />
Hans-Georg Thiebes, Eschweiler<br />
(w.e.f. 1 March 1999)<br />
Kay Vogel<br />
Franz C. Ditterich<br />
Hans-Georg Thiebes
The courtyard with fountain in the DGZ office city Berlin-Weissensee developed by<br />
Concordia Bau und Boden <strong>AG</strong>: Exemplary urban development project<br />
5
Report of the Supervisory Board<br />
Report of the Supervisory Board<br />
At Supervisory Board meetings over<br />
the past year, we have in separate discussions<br />
and by written and regular reports<br />
kept ourselves closely informed<br />
of the position of the company and its<br />
associated and affiliated companies<br />
and fundamental questions of company<br />
policy and have consulted with<br />
the Board of Directors about these<br />
matters.<br />
Our discussions covered in particular<br />
the net worth, the financial position<br />
and liquid funds of the company, the<br />
development of expenses and revenues,<br />
questions relating to the organisation<br />
and the employees, business and<br />
investment policy and also in particular<br />
the millennium problem. We also discussed<br />
important individual transactions<br />
and reached decisions with<br />
regard to business which required<br />
approval by us under the law or the<br />
company's bylaws or the rules of procedure<br />
binding on the Board of Directors.<br />
Five Supervisory Board meetings were<br />
held during the 19<strong>98</strong> financial year.<br />
The Chairman of the Supervisory Board<br />
received regular reports from the Board<br />
of Directors at individual meetings and<br />
acted in an advisory capacity to the<br />
Board of Directors.<br />
We have reviewed the financial statements<br />
and the management report and<br />
considered the proposal for the appropriation<br />
of the results for the 19<strong>98</strong><br />
financial year. The financial statements<br />
at 31 December 19<strong>98</strong> and the 19<strong>98</strong><br />
management report, including the accounting<br />
records, have been audited<br />
by KPMG Deutsche Treuhand-Gesellschaft,<br />
Wirtschaftsprüfungsgesellschaft,<br />
Cologne, as commissioned by the Supervisory<br />
Board in writing on 4 December<br />
19<strong>98</strong> and given an unqualified<br />
6<br />
auditor's opinion. The Supervisory<br />
Board notes and approves the results of<br />
the audit.<br />
The results of the review by the Supervisory<br />
Board and the audit performed<br />
by the auditors have not resulted in any<br />
exceptions.<br />
The consolidated financial statements,<br />
the annual report for the group and the<br />
group auditors' report were submitted<br />
to the Supervisory Board.<br />
We have approved the 19<strong>98</strong> financial<br />
statements prepared by the Board of<br />
Directors, which are hereby adopted in<br />
accordance with Article 172 German<br />
Stock Companies Act, and we are in<br />
agreement with the proposal by the<br />
Board of Directors that the accumulated<br />
deficit be carried forward. The retained<br />
profit for the year of DM<br />
1.338.875,92 will be set off against the<br />
deficit of DM 119.228.546,21 carried<br />
forward from the previous year. The<br />
deficit of DM 117.889.670,29 will be<br />
carried forward to the accounts.<br />
Upon request of the Supervisory Board,<br />
the auditors participated in the meeting<br />
at which the above mentioned documents<br />
were discussed and provided the<br />
information requested of them.<br />
Also the Finance Committee at three<br />
meetings discussed important matters<br />
relating to the development of business<br />
in the group and prepared for consultations<br />
with the full advisory board on<br />
specific agenda items.<br />
The Personnel Committee in two meetings<br />
discussed personnel developments<br />
within the group.<br />
During the past year Dr. jur. Hans F. Vögeli,<br />
Adlikon, Switzerland, retired from<br />
the Supervisory Board on 31 March<br />
19<strong>98</strong>, Mrs. Carola Hahn-Szep as employees'<br />
representative on 23 July
Owner-occupied apartments on the bank of the river Spree on the peninsula Stralau,<br />
opposite Treptower Park: “Fine view”<br />
7
Report of the Supervisory Board<br />
19<strong>98</strong>, Mr. Jean-Paul Dumortier, Paris,<br />
on 4 September 19<strong>98</strong>, and Mrs. Helena<br />
Rohde as employees' representative on<br />
23 February 1999. The Supervisory<br />
Board thanks the retired members for<br />
their commitment and cooperation.<br />
Dr. Hanno Marquardt and Dr. Peter<br />
von Woedtke were appointed members<br />
of the Supervisory Board of our<br />
company with effect from 30 July<br />
19<strong>98</strong>.<br />
Mrs. Gabriele Ronge retired from the<br />
Board of Directors as of 31 January<br />
19<strong>98</strong>. Mr. Hans-Georg Thiebes was<br />
appointed to the Board of Directors<br />
with effect from 1 March 1999.<br />
8<br />
We should like to express our thanks<br />
and appreciation to the Board of Directors<br />
and all employees for their work<br />
during the financial year.<br />
Oberhausen, July 1999<br />
The Supervisory Board<br />
Ulrich Hocker, Chairman
Inner area of the “Podbi-Park“ in Hanover: Renovated office, business and hotel centre<br />
with new constructions on the site of the former “Bahlsen“ biscuit factory<br />
9
Report of the Board of Directors<br />
Strategic orientation<br />
Concordia Bau und Boden <strong>AG</strong> was<br />
floated as a mining company in 1850<br />
and has changed its corporate purpose<br />
a number of times since then. This is reflected<br />
in the company name. The body<br />
of shareholders likewise has a completely<br />
different structure. Since 1<strong>98</strong>6 the<br />
new Concordia Bau und Boden <strong>AG</strong> has<br />
operated exclusively in the real estate<br />
sector. With the range of real-estate-related<br />
investment services which it offers<br />
on the market the company is numbered<br />
amongst the few large public<br />
real-estate companies quoted on the<br />
stock exchange.<br />
Concordia's core operations are<br />
■ project development<br />
■ management and commercial<br />
utilisation of residential and commercial<br />
property<br />
■ floating and management of<br />
closed-end real-estate funds.<br />
Services are provided on the company's<br />
own account and to third-party<br />
order over a broad spectrum covering<br />
almost all the sectors of real estate: rented<br />
and owner-occupied apartments,<br />
office and business property, multifunctional<br />
shopping and adventure centres,<br />
hotels, specialist discount stores<br />
and industrial parks.<br />
The opportunities, and also the risks,<br />
for our company depend upon the economic<br />
environment. Cyclical and structural<br />
fluctuations in this area of the economy<br />
disturb market forces and prevent<br />
steady development. What is indisputable<br />
is that real estate as a tangible<br />
investment exercises a price-stabilising<br />
function and thus has a future.<br />
The fact that a number of competitors<br />
are entering the market at present underlines<br />
the excellent future prospects<br />
offered by the real estate business and<br />
10<br />
View of the Treptowers of the Allianz group from the owner-occupied apartment building on<br />
the Spree bank of the Stralau peninsula: Living and working by the waterside.
1<br />
1<br />
1<br />
Berlin-Mitte: Owner-occupied<br />
apartments “Luisenhof“ (r.)<br />
Berlin-Mitte: Office complex<br />
Alte Jakobstrasse (l.)<br />
Strategic orientation<br />
Berlin-Weissensee:<br />
DGZ office city<br />
Berlin-Prenzlauer Berg:<br />
Owner-occupied residential<br />
building: “Goldpunkt“<br />
Berlin-Stralau:<br />
“Spreeufer-Residenz“<br />
(above)<br />
11
Report of the Board of Directors<br />
its capacity to generate earnings. The<br />
favourable development over time of<br />
the US Real Estate Investment Trusts<br />
(Reits) and the readiness of English and<br />
US pension funds to invest in real estate<br />
emphasise that real estate as a scarce<br />
resource offers opportunities for a real<br />
increase in value. The development of<br />
the Euro favours stable-value forms of<br />
investment, and those are the tangible<br />
assets of shares and real estate. As a<br />
public real estate company, Concordia<br />
Bau und Boden <strong>AG</strong> has the advantage<br />
over competitors not only of a stock<br />
exchange listing, but also of an extensively<br />
completed consistent restructure.<br />
Our marketing strategy is guided by<br />
the changes in the requirements of the<br />
target groups, for example:<br />
■ greater emphasis on revenue than<br />
on tax benefits from property<br />
ownership<br />
12<br />
ARD<br />
Studio Berlin<br />
ABN<br />
Amro Bank<br />
Hotel<br />
Adlon<br />
Deutsche<br />
Post <strong>AG</strong><br />
Pro 7<br />
Leipziger<br />
Messe<br />
American<br />
Express<br />
n-tv<br />
Nachrichtenfernsehen<br />
CNN<br />
Nachrichtenfernsehen<br />
Bundesrat<br />
Focus<br />
Finanzministerium<br />
■ trend towards real estate as part of<br />
the provision for old age<br />
■ increased range of services<br />
■ expanded range of services for<br />
major investors.<br />
It is here that we want to make full use<br />
of our market strengths to gain competitive<br />
advantages. In order to absorb<br />
external fluctuations on the real estate<br />
market we shall be focussing our core<br />
operations on real estate management<br />
to increase net-asset value, low-risk<br />
project planning and the expansion of<br />
services yielding higher earnings.<br />
To this end the following strategic<br />
guidelines were laid down by the Board<br />
of Directors:<br />
■ cost cutting by utilisation of all the<br />
synergetic effects set up in the<br />
company<br />
■ lasting safeguarding of liquid funds<br />
Dresdner Bank Deutsche Bank Hotel Unter den Linden<br />
Leipziger Straße<br />
Friedrichstraße<br />
Unter den Linden<br />
Spreeinsel<br />
Focussing on<br />
core operations<br />
Spittelmarkt<br />
The Economist The Financial Times Reuters Justizministerium<br />
Sotheby's<br />
Museumsinsel<br />
Deutsche<br />
Staatsoper<br />
Nikolai-<br />
Viertel<br />
Berliner<br />
Bank<br />
Haus der<br />
Wirtschaft<br />
Süddeutsche<br />
Zeitung<br />
Galeriés<br />
Lafayette<br />
Außenministerium<br />
Berlin<br />
Hilton
Range of services based<br />
on experience<br />
“Luisenhof” owner-occupied apartment building,<br />
front and rear, right at the centre of Berlin<br />
■ consistent utilisation of know-how<br />
advantages and potential for earnings<br />
in the core sectors<br />
■ expansion of profitable services<br />
■ value-oriented company management<br />
The basis for the realisation of the undertaking<br />
concept is the net-asset<br />
strength of the company and a performance<br />
based upon experience. The<br />
financial strength and competence of<br />
Concordia Bau und Boden <strong>AG</strong> are demonstrated<br />
by: equity capital of 206,9<br />
million DM, the portfolio of commercial<br />
and residential property, including<br />
the fund companies with about<br />
487.000 m 2 of useful space, including<br />
the space still under construction.<br />
The aim of a value-oriented company<br />
management is an appropriate return<br />
on capital employed. The<br />
company is still a long way from a<br />
lasting and continuous increase in<br />
the value of the undertaking. In 1999<br />
too, the undertaking will continue to<br />
depend upon supporting measures taken<br />
by the shareholders. In accordance<br />
with the concept of shareholder value<br />
we shall make every effort to optimise<br />
the potential for generating earnings<br />
in all areas of business.<br />
Strategic orientation<br />
A tight organisation and consistent<br />
cost-reduction are the prerequisites for<br />
a profit-oriented management. We<br />
shall continue to slim down the administration.<br />
Overheads can be reduced by<br />
the purchase of services and specialist<br />
knowledge. When it comes to the expansion<br />
of real-estate-related services<br />
for third parties the concept of outsourcing<br />
is not alien to us.<br />
Benchmarking – the permanent measuring<br />
of our work against the best of<br />
the competitors in the respective market<br />
segments – is a means of achie-
Report of the Board of Directors<br />
Urban development project Spittelmarkt district: Concordia Bau und Boden <strong>AG</strong> with partners<br />
14<br />
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Completion commercial/residential<br />
Outside investors<br />
ving goals and a spur to the employees<br />
to give of their best. To this end we are<br />
putting into effect personnel development<br />
and qualification programmes.<br />
Changing one's way of thinking and<br />
the change to a company culture based<br />
upon it is without doubt a long, slow<br />
process. It can be accompanied and accelerated<br />
only by intensive change management.<br />
Specifically we have defined the core<br />
operations for the divisions of business<br />
as follows: real estate development extends<br />
from acquisition of land through<br />
usage planning and development to<br />
the handing over of the property to the<br />
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cd�cdcdcdcd�cd�ddcdcdcd�dd dd�cddd dccddddc�cddccd�dd�dd�cd�cddcdddd cdcddccddd�cddcdddccddccdcd cddc ddcdcdddcdcd�dcdcdddddddddddddd�dccd�dcdddcdddddddddddddd�dc�ddddddcddcdddddddddddd�dcdc�dcdcddddcddc�cddcdc�dddcdcdcdddcdd�dcdddccd�cd�dc�dc dc dc�dddccd�dddd dc�dd�ddcdcd dc cd<br />
cd�cdcdcdcd�cd�ddcdcdcd�dd<br />
Commercial/residential in preparation<br />
investor for immediate occupancy. We<br />
also provide assistance with the provision<br />
of end financing for the projects<br />
developed by us.<br />
We distinguish between two forms of<br />
project development:<br />
■ project planning on group-owned<br />
land<br />
■ project planning for and with thirdparties<br />
on non-group-owned land<br />
or land acquired jointly.<br />
Concordia Bau und Boden <strong>AG</strong> is in all<br />
cases the general contractor for the<br />
projects managed by it or under construction.<br />
To fulfil its obligations as a<br />
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Modernisation of residential<br />
and commercial real estate<br />
general contractor it regularly avails<br />
itself of primary contractors, as in the<br />
case of the projects at present under<br />
construction.<br />
We anticipate additional results from<br />
the trade in undeveloped and developed<br />
land due to our nationwide presence<br />
and years of experience. We see<br />
promising prospects in the area of real<br />
estate acquisition and management.<br />
The provision of non-group-owned<br />
real estate, the conventional agency<br />
work, is being further expanded as a<br />
real estate related service. These activities<br />
are carried out for undeveloped<br />
land, commercial and residential buildings<br />
and shopping centres.<br />
The conversion of residential buildings<br />
to part ownership and the sale of the<br />
refurbished units are numbered<br />
amongst the activities with earnings<br />
prospects. Modernised portfolio dwellings<br />
are also affordable by low-wage<br />
earners and young families. We shall<br />
modernise, convert into owner-occupied<br />
apartments and sell residential<br />
apartment buildings on our own account<br />
and to the order of third-parties.<br />
Besides the new construction of residential<br />
and commercial real estate we<br />
are turning increasingly to the modernisation<br />
and re-utilisation of commercial<br />
property in our own and in thirdparty<br />
portfolios. In Berlin-Pankow, for<br />
example, Concordia Bau und Boden<br />
<strong>AG</strong> owns the land and the building once<br />
belonging to the former Berliner Zigarettenfabrik<br />
(Bezifa). The commercial<br />
and residential property is in the<br />
planning permit phase, but will not be<br />
begun until users have been found for<br />
the planned commercial space.<br />
We make it a principle to convert only<br />
attractive commercial property<br />
which also offers variable options for<br />
use in future.<br />
Strategic orientation<br />
The portfolio properties are at attractive<br />
locations in central Berlin, Frankfurt,<br />
Stuttgart, Düsseldorf, Munich<br />
and Hamburg. Both, commercial and<br />
residential properties are being developed.<br />
Altogether the project planning<br />
is expected to have been completed<br />
by 2004.<br />
In the case of some pieces of land<br />
which we are acquiring for purchase<br />
and our own development the preliminary<br />
study has been completed.<br />
Purchase agreements and planning<br />
permission for this property assessed<br />
as especially profitable are currently<br />
being examined. The development of<br />
property of this kind is being carried<br />
out entirely with a view to earnings.<br />
In the case of larger projected developments<br />
we shall reduce risk by<br />
means of collaborations.<br />
Primarily from the local government<br />
sector partnerships are being sought<br />
with the private sector for the construction,<br />
conversion and management<br />
of publicly owned real estate.<br />
The provision of these services too will<br />
be overseen by us.<br />
In the case of new construction or<br />
conversion of commercial or residential<br />
property for third parties on nongroup-owned<br />
land we can put our<br />
considerable experience as project developers<br />
to best use. Owing to the<br />
current state of the market and the<br />
high technical, legal and commercial<br />
requirement by investors this field of<br />
business offers excellent earnings prospects.<br />
Concordia Bau und Boden <strong>AG</strong>'s<br />
human and organisational resources<br />
and business contacts nation-wide are<br />
at the disposal of this clientele.<br />
Basic agreements are currently being<br />
negotiated nation-wide with the aim<br />
of managing property in densely populated<br />
urban centres. Commercial<br />
15
Report of the Board of Directors<br />
and technical coordination and control<br />
functions are to be taken over.<br />
We are developing project-linked<br />
fund models: the investor retains 51%<br />
of the property, the remaining shares<br />
are placed with a broad spread of investors<br />
at various levels via closed-end<br />
real estate funds. For Concordia Bau<br />
und Boden <strong>AG</strong>, the effect in such cases<br />
is a double one: the company has the<br />
opportunity of participating in the property<br />
development business and in both<br />
the floating and distribution of funds.<br />
With regard to the only foreign project<br />
at North Miami Beach (Florida, USA) so<br />
far, four apartment buildings (“Towers<br />
16<br />
I to IV”) have been completed and over<br />
600 flats sold. The sale of flats for<br />
Tower V under construction is outpacing<br />
the progress of construction.<br />
Besides its classical functions like the management<br />
of own and third-party residential<br />
and commercial property, leasing<br />
and sale, shopping centre and hotel<br />
management, the real estate management<br />
division will in future be offering<br />
other services relating to real estate. We<br />
consider this to be a profitable business.<br />
The package of services includes:<br />
■ technical and commercial real<br />
estate management<br />
Newly created Berlin garden<br />
atmosphere between Wallhöfen<br />
and Alte Jakobstrasse: Living in<br />
the city centre.
Office and commercial building in Berlin-Mitte, Alte Jakobstrasse:<br />
Within walking distance to the Ministry of Foreign Affairs and to the Industrial Associations<br />
Strategic orientation<br />
17
Report of the Board of Directors<br />
■ preventive building maintenance<br />
■ handling of external service<br />
providers.<br />
The aim of this sector remains the expansion<br />
of the portfolio on a case by<br />
case basis to increase the net-asset value<br />
of the company. Land and buildings<br />
which are due for sale but do not meet<br />
our expectations with respect to earnings<br />
will be sold at market prices.<br />
In the real estate funds sector too, there<br />
are plans for expansion. There is potential<br />
in our know-how and competence<br />
in the floating and management<br />
of closed-end real estate funds for third<br />
parties. The general concern felt by<br />
many Germans – and increasingly by<br />
younger purchasers – about adequate<br />
provision for old age favours forms of<br />
investment with continuous and rising<br />
dividends.<br />
With the concentration on core operations<br />
and the expansion of service operations<br />
Concordia Bau und Boden <strong>AG</strong><br />
relies on its strengths: It is using its<br />
long experience to good effect in the<br />
real estate sector. From project planning<br />
through realisation to management<br />
the company covers the entire<br />
value-added chain. The services are offered<br />
through companies operating<br />
independently on the market and<br />
managed as profit centres. Those<br />
successfully launched are<br />
■ GBS Gebäude Betreuungs-Service<br />
GmbH. This offers services relating<br />
to real estate such as caretaker services,<br />
cleaning and security, to minor<br />
repairs and other services for<br />
the management of property and<br />
management for property owners<br />
or tenants in the residential and<br />
commercial sector.<br />
■ VKK Versicherungs-Kontor Köln<br />
GmbH. It manages the company's<br />
own assurance business and offers<br />
its agency services to third parties.<br />
18<br />
It is precisely from this new entity<br />
that we anticipate cross-selling effects<br />
through the use of all possibilities<br />
in the areas of operation<br />
through their contacts and clientele.<br />
With the entry into the facility management<br />
and financial services sectors<br />
we are following the market trend and<br />
offering more service ranges. The expansion<br />
of our service spectrum goes<br />
hand in hand with the improvement of<br />
the internal structures and procedures.<br />
With the available human resources,<br />
specialist knowledge and close contacts<br />
with potential purchasers and service<br />
providers, there are sufficient possibilities<br />
for extending business activities<br />
profitably.<br />
Grevenbroich: Montanushof<br />
Nation-wide management of centres<br />
and shopping malls:<br />
Competence through experience<br />
Leverkusen: Luminaden
Hanover: Shopping arcade in the Podbi-Park Stuttgart: Eberhard Passage<br />
Strategic orientation<br />
19
Report of the Board of Directors<br />
Corporate performance 19<strong>98</strong><br />
The development of company business<br />
and results of Concordia Bau und<br />
Boden <strong>AG</strong> in 19<strong>98</strong> were largely determined<br />
by the general economic setting,<br />
the still unfavourable environment<br />
of the real estate business and<br />
the further restructuring of the company.<br />
The company has asserted itself positively<br />
in the market and rationalised its<br />
organisation. We are nearer to the set<br />
goal of becoming a lean, effective competitor<br />
in a market hard fought for due<br />
to slack demand.<br />
The general improvement in the economy<br />
has not yet worked through to<br />
the real estate sector.<br />
The impetus for the general economic<br />
recovery in 19<strong>98</strong> came from exports,<br />
but failed to impart any movement to<br />
sub-sectors like consumption, investment<br />
and the real estate business.<br />
Despite historically low mortgage interest<br />
rates and a variety of government<br />
aid both of a direct and a fiscal nature,<br />
the real estate motor did not run in the<br />
desired manner.<br />
In the market segment of housing construction<br />
the number of completions<br />
nation-wide fell by 58.000 from the<br />
level in 1997 to 520.000. Only owneroccupied<br />
houses and flats provided<br />
what movement there was. While the<br />
Federal Republic still lags behind the<br />
rest of Europe in levels of home ownership,<br />
nevertheless the desire of<br />
many, particularly younger families, to<br />
live inside "their own four walls" is<br />
clearly being fulfilled. The current<br />
strong government promotion of home<br />
ownership is politically desirable<br />
and a spur to purchase.<br />
With regard to commercial property,<br />
primarily offices, the recessionary trend<br />
20<br />
Architecture and malls:<br />
Lit throughout by domes<br />
of many years eased in the<br />
heavily populated urban centres<br />
of Western Germany. The<br />
difficulties in the new Federal<br />
Länder with high oversupply<br />
and the consequent effects of a<br />
sharp fall in rents and the stock of<br />
properties standing unoccupied are<br />
not likely to be overcome in the foreseeable<br />
future.<br />
The special situation in Berlin, where<br />
Concordia Bau und Boden <strong>AG</strong> is especially<br />
committed, was marked in 19<strong>98</strong><br />
by restrained demand. However, real<br />
estate agents report that there are various<br />
institutions, companies and associations<br />
which hope to profit from possibly<br />
even lower rents and purchase prices<br />
before parliament moves location<br />
in mid-1999.<br />
In the market for rental appartments<br />
levels continued to fall in 19<strong>98</strong>. The<br />
average decline across Federal Germany<br />
being 1,4% to new lettings, but<br />
almost twice that figure in densely populated<br />
areas.<br />
Only the market for property-related<br />
services developed contrary to the<br />
stagnating trend in the business. The<br />
demand by third parties for services related<br />
to real estate is growing, both in<br />
the public and in the private sector. In<br />
all areas of the business, there was<br />
an increased requirement for liquid<br />
funds, which was necessary<br />
due to the market situation,<br />
financing costs and the specific<br />
rent situation for commercial<br />
buildings. As in<br />
previous years, this could<br />
not be fully met from sources<br />
outside the group.
Report of the Board of Directors<br />
The equity relationships for the 19<strong>98</strong><br />
financial year are as follows:<br />
■ The share of votes in Concordia<br />
Bau und Boden <strong>AG</strong> held directly<br />
and indirectly by the Unifina <strong>Holding</strong><br />
<strong>AG</strong>, Winterthur, Switzerland, is<br />
48 per cent.<br />
■ Sopaco Beteiligungs- und Verwaltungsgesellschaft<br />
mbH, Frankfurt<br />
am Main, has a share of 26 per cent<br />
of the votes. They are to be allocated<br />
in full to the parent company,<br />
Caisse de Dépôts et Consignations,<br />
Paris.<br />
■ Bankgesellschaft Berlin Aktiengesellschaft,<br />
Berlin, holds a 7,53 per<br />
cent share in our company.<br />
The registered offices of the company<br />
are in Oberhausen. There are branches<br />
in Cologne, which is at the same<br />
time the central administration, and in<br />
Berlin. There are local offices in Dortmund,<br />
Hamburg, Hanover, and Stuttgart.<br />
The only overseas office of Concordia<br />
Bau und Boden <strong>AG</strong> – the<br />
"Oceania Island" owner-occupied<br />
apartment building – is located in<br />
North Miami, Florida, USA.<br />
Turnover in the 19<strong>98</strong> financial year was<br />
down on the previous year due to fewer<br />
completions and hand-overs. While<br />
gross annual receipts in the group<br />
from buildings management remained<br />
relatively constant at about DM 47 million<br />
(1997: DM 53 million), we recorded<br />
a drop from DM 309 million in<br />
1997 to about DM 132 million on the<br />
sale of land.<br />
Other deliveries and services, which reflect<br />
the projects set up by us as general<br />
contractor, fell to DM 87 million<br />
(1997: DM 180 million).<br />
22<br />
Cologne City: Office and business<br />
building in the shopping area<br />
Concordia property portfolio in city<br />
centre locations: Favourable rents and<br />
increased-value potential
Stuttgart City: Residential buildings<br />
and Eberhard Passage<br />
Corporate performance<br />
23
Report of the Board of Directors<br />
Project Development Division<br />
Again, no new development projects<br />
were undertaken during the financial<br />
year owing to the tight situation of the<br />
company and the difficult market.<br />
The division concentrated on the completion<br />
of projects already under construction.<br />
This applies to the Goldpunkt<br />
apartment building in Berlin-Prenzlauer<br />
Berg and the Luisenhof, an apartment<br />
and business complex in the historic<br />
Spittelmarkt quarter in the centre<br />
of Berlin. On the Stralau peninsula, one<br />
of the sought after city development<br />
areas of Berlin, we realised an owneroccupier<br />
apartment complex immediately<br />
by the Spree opposite the Treptower<br />
Park.<br />
Prestigious apartment complexes in<br />
Düsseldorf, Munich and Frankfurt were<br />
extended and completed in sections.<br />
In the case of commercial property the<br />
buildings in Berlin-Mitte, Alte Jakobstrasse,<br />
were completed and handed<br />
over to the owners, an institutional<br />
investor and real estate fund.<br />
In the case of some buildings there were<br />
temporary stoppages and delays in<br />
hand-over, which resulted in penalties<br />
in 19<strong>98</strong>. With real estate funds completion<br />
and rent guarantees became<br />
payable. The costs of projects under<br />
construction were appreciably reduced<br />
in 19<strong>98</strong>.<br />
The refurbishment of the portfolio<br />
building of the former Goldpunkt shoe<br />
factory in the Greifswalder Strasse in<br />
Berlin-Prenzlauer Berg was completed,<br />
the offices were occupied and the extension<br />
was begun at the end of the<br />
year. Delays – but ones which could be<br />
made up – due to official measures were<br />
experienced in relation to the new<br />
construction at the front of the property<br />
of an office and business buil-<br />
24<br />
ding, which has been assigned to a<br />
real estate fund.<br />
In parallel to property extensions, the<br />
division developed portfolio sites, for<br />
example, the owner-occupied apartment<br />
building Hamburger Billwerder<br />
Neuer Deich, to the stage of marketability.<br />
The “Oceania Island” overseas project<br />
by the beach and on the private island<br />
in the Intercoastal Waterway at North<br />
Miami Beach, Florida, USA, continues<br />
to be developed in several stages on<br />
schedule. Construction work began on<br />
the fifth tower in 19<strong>98</strong> after the sale of<br />
the owner-occupied flats in the twin<br />
building for completion in the year<br />
2000.<br />
150 large-dimension owner-occupied<br />
apartments in the luxury class are for<br />
sale at prices between US $ 250.000<br />
and US $ 1,2 million. The complex also<br />
comprises a private beach club, a<br />
fitness centre, restaurants, indoor<br />
swimming-pool, other pools and its<br />
own boat marina. The management<br />
organises all the conceivably desirable<br />
services.<br />
Independent agents have on several<br />
occasions rated the Oceania Island<br />
holiday or retirement resort as the best<br />
in South Florida.
Goldpunkt owner-occupied apartments in<br />
Berlin-Prenzlauer Berg: Capital investment at<br />
a location with a future in this most typical of<br />
Berlin areas. (l. + r.)<br />
The Goldpunkt centre located in front of the<br />
owner-occupied apartment building: Restored<br />
portfolio building and new-construction project<br />
with offices and shops in the Greifswalder<br />
Strasse<br />
Project Development Division<br />
25
Report of the Board of Directors<br />
Project Development Summary – Residential buildings<br />
Project Usage Investor Total usable Completion date Project<br />
area m 2 status<br />
%<br />
Berlin-Friedrichshain Owners’<br />
Alt-Stralau Residential association 8.443 Dec. <strong>98</strong> 100%<br />
Berlin-Mitte Owners’<br />
Alte Jakobstr. 76-78a Residential association 11.842 Dec. <strong>98</strong> 99%<br />
Berlin, Prenzlauer Berg Owners’<br />
Erich-Weinert-Strasse Residential association 18.401 Dec. <strong>98</strong> 99%<br />
Frankfurt-Niederursel Owners’<br />
Praunheimer Weg Residential association 5.258 Sep. <strong>98</strong> 99%<br />
(Constr. section II)<br />
München-Haidhausen Owners’<br />
Balanstrasse Residential with association 5.543 June 2000 6%<br />
St. Wolfgangsplatz commercial spaces<br />
Düsseldorf-Bilk Owners’<br />
Sternwart-/Fleherstr. Residential association 29.739 Sep. <strong>98</strong> 90%<br />
Miami Beach Residential Owners’ approx.<br />
Oceania Island as Tower V association 150 apartm. 2000 5%<br />
26<br />
Owner-occupied residential building in Düsseldorf-Bilk: Media, Ministries and Management
Project Development Summary – Commercial buildings<br />
Project Development Division<br />
Project Usage Investor Total usable Completion Project<br />
area m 2 status<br />
%<br />
Berlin-Mitte Real estate fund<br />
Alte Jakobstrasse 83/84 Offices 5.333 Dec. <strong>98</strong> <strong>98</strong>%<br />
Berlin-Mitte / Seydel- Offices and Institutional<br />
strasse 15/ Neue Gruen- shops with investor 2.433 April <strong>98</strong> 100%<br />
strasse 38 residential<br />
Berlin-Mitte<br />
Alte Jakobstrasse 77 Offices Real estate fund 1.<strong>98</strong>6 Aug. <strong>98</strong> 100%<br />
Berlin-Mitte<br />
Alte Jakobstrasse 78 Offices Real estate fund 1.645 Dec. 97 97%<br />
Berlin-Mitte<br />
Alte Jakobstr. 79/80 Offices Real estate fund 6.466 Oct. <strong>98</strong> <strong>98</strong>%<br />
Berlin-Mitte<br />
Alte Jakobstr. 96/99 Offices Real estate fund 2.321 Dec. <strong>98</strong> <strong>98</strong>%<br />
Berlin, Prenzlauer Berg<br />
Erich-Weinert-Strasse Offices Real estate fund 7.580 from Dec. <strong>98</strong> 85%<br />
(existing building remaining spaces,<br />
and extension) existing building<br />
and extension<br />
Berlin-Weissensee<br />
Gustav-Adolf-Strasse Offices Real estate fund 15.997 Dec. 97 <strong>98</strong>%<br />
Constr. section A2<br />
Berlin-Weissensee<br />
Gustav-Adolf-Strasse Offices Real estate fund 9.435 April 2000 65%<br />
Constr. section W2<br />
Berlin, Prenzlauer Berg Offices and<br />
Greifswalder Strasse shops Real estate fund 12.449 July 2001 3%<br />
Berlin-Weissensee<br />
Gustav-Adolf-Strasse Offices Real estate fund 5.681 late 2001 0%<br />
Constr. section C<br />
27
Report of the Board of Directors<br />
Project Development Summary – Planning phase<br />
Project Project Usage Investors Total usable Construction<br />
name area m 2 permit<br />
Berlin-Pankow Modernisation commercial/ Institutional approx. 31.000 Constr. permit<br />
Berliner Strasse and new building residential investor being prepared<br />
buildings<br />
Berlin-Mitte New building commercial/ Owners’ approx. 24.600 Prelim. constr. permit<br />
Spittelmarkt residential association/ in 1999, constr. per-<br />
Quartier I buildings institutional mit being prepared<br />
investor<br />
Berlin-Mitte New building commercial/ Owners’ approx. 16.280 Construct. permit<br />
Spittelmarkt residential association/ being prepared<br />
Quartier II buildings institutional<br />
investor<br />
Berlin-Mitte New building commercial/ Owners’ approx. 24.780 Construct. permit<br />
Spittelmarkt residential association/ being prepared<br />
Quartier III buildings Institutional<br />
investor<br />
Dresden New building commercial/ Owners’ approx. 16.000 Premises<br />
Reichenbach- residential association/ for sale<br />
strasse buildings institutional<br />
investor<br />
28<br />
Project realised in Berlin: Owner-occupied residential building on the bank of the Spree
Project Development Summary – Planning phase<br />
Project Development Division<br />
Project Project Usage Investors Total usable Construction<br />
name area m 2 permit<br />
Markt New building Owner-occupied Institutional approx. 69.200 Premises<br />
Schwaben residences investor for sale<br />
near Munich<br />
Dachau New building Shopping Institutional approx. 49.000 Premises<br />
Münchner centre investor for sale<br />
Strasse<br />
Hamburg New building Residential Owners’ approx. 28.000 planning permission<br />
Billwerder buildings association in 1999<br />
Neuer Deich<br />
Frankfurt New building Commercial Institutional approx. 22.000 Prelim. constr.<br />
August-Schanz- buildings investor permit in 1999<br />
Strasse<br />
Stuttgart New building Residential Owners’ approx. 4.900 Constr. permit<br />
Leinfelden- building/hotel association granted,<br />
Echterdingen prelim. constr. perm.<br />
for hotel in 1999<br />
Planned project in Hamburg: Owner-occupied apartment buildings<br />
29
Report of the Board of Directors<br />
Real Estate Management<br />
Division<br />
The Division comprises management,<br />
letting and sales.<br />
Concordia Bau und Boden <strong>AG</strong> owns<br />
real estate and manages third party residential<br />
and commercial real estate.<br />
At present there is a portfolio of residential<br />
and commercial buildings with<br />
usable space of about 452.000 m 2 ,<br />
which bring in rents amounting to DM<br />
116 millions. The largest buildings in<br />
the company's own portfolio or owned<br />
jointly with an investment partner are<br />
located in Hanover (Podbi-Park,<br />
about 52.000 m 2 ), Grevenbroich<br />
(Montanushof, about 28.000 m 2 ),<br />
Dortmund (Alte Post, 21.000 m 2 ) and<br />
Stuttgart (Eberhard Passage, about<br />
17.000 m 2 ).<br />
Concordia Bau und Boden <strong>AG</strong> also has<br />
current assets in the form of small portfolios<br />
of completed residential buildings<br />
for sale to individual investors.<br />
All the property held as fixed and current<br />
assets are managed by Concordia<br />
Bau und Boden <strong>AG</strong>. In addition there is<br />
the property contributed (or to be contributed<br />
after completion) to the nine<br />
real estate funds formed by Concordia<br />
Bau und Boden <strong>AG</strong> and various buildings<br />
in the portfolio of subsidiary companies,<br />
which are likewise managed by<br />
us.<br />
The management operation includes<br />
the maintenance of all the properties,<br />
their letting, the collection of rents and<br />
the accounting for owners and tenants.<br />
In Oberstaufen, Allgäu, we operate a<br />
first-class hotel offering fitness and Thalasso-treatment<br />
and other therapies. In<br />
19<strong>98</strong> it achieved 85 per cent occupancy.<br />
Further hotels are leased to operating<br />
companies, for example, Dorint<br />
30<br />
<strong>AG</strong> in Erfurt and Hanover or Astron<br />
<strong>Holding</strong> <strong>AG</strong> in Dortmund.<br />
A list of the portfolio properties (undeveloped,<br />
developed and under construction)<br />
provides information about<br />
the individual buildings (page 34).<br />
For shopping centres Concordia Bau<br />
und Boden <strong>AG</strong> undertakes the centre<br />
management and thus the professional<br />
oversight of the buildings, for example,<br />
by means of marketing measures. “Experience<br />
shopping“ as a leisure activity,<br />
currently employed by trading<br />
groups as a panacea against declining<br />
consumption, is something we have<br />
been practising for many years. That<br />
was, for example, the idea behind the<br />
successful Montanushof in Grevenbroich<br />
realised by us 15 years ago. Many<br />
first-time tenants are today still in the<br />
fully let building, which belongs to real<br />
estate fund 6.<br />
The result for Concordia Bau und<br />
Boden <strong>AG</strong> from real estate held as fixed<br />
assets has been negatively affected by<br />
the company's financial difficulties in<br />
previous years. Existing deficiencies<br />
could not be remedied in time, and this<br />
led to a decline in lettings or hindered<br />
new lettings. Additional vacancies occured<br />
in the meantime due to the recession<br />
in the real estate market.<br />
By remedying the deficiencies and letting<br />
the unoccupied space, however,<br />
considerable progress was made, particularly<br />
in the 19<strong>98</strong> year under review.<br />
Thus at the end of the year about 80<br />
per cent of the space in the office and<br />
shopping centre in Stuttgart, 86 per<br />
cent of that in Hanover and 90 per cent<br />
of that in Dortmund was let. In Berlin<br />
about 19.000 m 2 of office and commercial<br />
space were newly let.<br />
Letting in the residential and commercial<br />
sectors varied according to the different<br />
developments in sectors and re-
Report of the Board of Directors<br />
Hotel Concordia, Oberstaufen: Own portfolio and with own management Dorint-Hotel, Hanover: Architecture award<br />
(above), the interior with the old machinery of<br />
the former Bahlsen biscuit factory (bottom).<br />
Despite the decrease in space by about<br />
17.000 m 2 the net rent from residential<br />
space rose to DM 15.565 million as<br />
against 15.027 million in 1997. The net<br />
rent from commercial property rose<br />
from DM 94.337 million to DM<br />
100.437 million.<br />
In the 19<strong>98</strong> year under review a total of<br />
65.462 m 2 (1997: 43.244 m 2 ) of space<br />
was let for the first time. Both for portfolio<br />
lettings (40.076 m 2 ) and for firsttime<br />
lettings (25.386 m 2 ) the previous<br />
year's levels of 25.711 m 2 and 17.533<br />
m 2 were appreciably exceeded.<br />
The net monthly rent per m 2 achieved<br />
on newly let space, including car parking<br />
space, fell slightly in the year under<br />
review, from DM 17,55 in 1997 to<br />
DM 16,51. The reason for this was<br />
that the rents achievable on new buildings<br />
in East Berlin and at the extremely<br />
difficult office location in Leipzig did<br />
not come fully up to expectations. In<br />
19<strong>98</strong> they stood at DM 14,80 per m 2 as<br />
against DM 18,24 per m 2 in 1997.<br />
By contrast the further letting of portfolio<br />
property falling vacant did not<br />
32<br />
present problems: slight rental increases<br />
were achieved – from DM 17,08<br />
per m 2 to DM 17,59 per m 2 in 19<strong>98</strong>.<br />
The average rent on all residential<br />
space was DM 11,73 per m 2 (1997:<br />
10,34 per m 2 ) and on commercial space<br />
DM 24,54 per m 2 (1997: 23,57 per<br />
m 2 ) – a gratifying improvement in both<br />
categories.<br />
The sale of owner-occupied flats and<br />
parking spaces as well as land and<br />
buildings from the portfolio achieved a<br />
sales figure of DM 71,2 million as against<br />
DM 66 million in the previous year.<br />
Hotel Montanushof, Grevenbroich
Hotel Astron, Dortmund:<br />
Style at the central railway station<br />
Sale of owner-occupied apartments<br />
■ DM 33,3 million (1997: DM 12,4<br />
million) from owner-occupied<br />
apartments and underground garage<br />
spaces nationwide<br />
■ DM 37,4 million (1997: DM 32,46<br />
million) from owner-occupied flats<br />
in the Oceania building, Florida,<br />
based on an exchange rate of<br />
1 US $ = DM 1,80.<br />
Sales efforts in the year under review<br />
concentrated on the residential properties<br />
in Berlin. Here thanks to the 25<br />
per cent tax concession for capital investors<br />
allowed under the Development<br />
Areas Act and expiring at the end<br />
of 19<strong>98</strong> marketing successes with correspondingly<br />
high levels of sales were<br />
achieved in Berlin:<br />
Sales levels in East Berlin as at<br />
31.12.19<strong>98</strong><br />
■ Alte Jakobstrasse apartments<br />
100 per cent<br />
■ Berlin-Weissensee apartment<br />
building: 99 per cent<br />
■ Spree-Ufer-Residenz Alt-Stralau<br />
<strong>98</strong> per cent<br />
■ Spittelmarkt Luisenhof residence<br />
<strong>98</strong> per cent<br />
■ Prenzlauer Berg apartment building:<br />
68 per cent.<br />
Real Estate Administration Division<br />
Although certain beneficial effects deriving<br />
from tax advantages played a<br />
part, it is doubtless the favourable location<br />
in each case, the attractive architecture<br />
and the superior quality of<br />
the fixtures and fittings that have decisively<br />
influenced decisions to buy. This<br />
is all the more gratifying as the amount<br />
of residential space available in the capital<br />
in the year under review was exceptionally<br />
large.<br />
As in East Berlin, clients in Western Germany,<br />
too, are mostly buying only<br />
completed flats or after viewing model<br />
homes in earlier construction phases.<br />
The times when homes were bought<br />
straight from the drawing board are<br />
over and gone.<br />
Sales levels in the old Federal Länder<br />
as at 31.12.19<strong>98</strong><br />
■ Munich apartment building<br />
Balanstrasse A + B<br />
99 per cent<br />
■ Frankfurt-Niederursel apartment<br />
building<br />
95 per cent<br />
■ Stuttgart apartment building<br />
Nesenbachstrasse<br />
87 per cent<br />
■ Düsseldorf-Benrath apartment<br />
building, Steinkribbenstrasse<br />
73 per cent<br />
■ Düsseldorf-Benrath apartment<br />
building, Benrather Schlossallee<br />
61 per cent<br />
■ Stuttgart apartment building<br />
Christophstrasse<br />
52 per cent<br />
■ Düsseldorf-Bilk apartment<br />
building<br />
46 per cent<br />
■ Munich apartment building<br />
Balanstrasse C<br />
16 per cent.<br />
In Landstuhl/Kaiserslautern, Concordia<br />
Bau und Boden <strong>AG</strong> is offering from its<br />
portfolio subdivided owner-occupied<br />
apartments in family sizes of up to<br />
124 m 2 . The Burgblick apartment<br />
building comprises 145 units with a<br />
usable space of about 17.000 m 2 .<br />
12 per cent were sold.<br />
33
Report of the Board of Directors<br />
Portfolio property assets<br />
(with and without buildings, and buildings under constructions) Situation: 31.12.19<strong>98</strong><br />
Location Usage/housing Building units/ Usable space Plot Parking Annual net<br />
units buildings (sections) m 2 m 2 spaces rent /TDM<br />
Schedule of total property<br />
A. Land without buildings<br />
Concordia Bau und Boden <strong>AG</strong> 16.878<br />
B. Land with buildings<br />
I. Residential property<br />
1. Concordia Bau und Boden <strong>AG</strong> 11 1 781 307 - 82<br />
2. <strong>C<strong>AG</strong></strong> (1) & Co. 8. Immobilien-Fonds-Gesellschaft KG2) 3) 2.032 265 109.712 223.662 919 15.483<br />
Total residential property 2.043 266 110.493 223.969 919 15.565<br />
(1) 2) Concordia Bau und Boden <strong>AG</strong> Grundrendite Liegenschaften & Co. Wohnbauten KG is the owner of the buildings<br />
3) Annual net rent as per general lease<br />
II. Commercial property<br />
1. Concordia Bau und Boden <strong>AG</strong> 30 19.066 39.728 60 2.575<br />
2. <strong>AG</strong> für Industriebeteiligungen & Co. Stuttgart-Zentrum KG 5 6 21.538 11.369 296 7.558<br />
3. Concordia Bauträger GmbH & Co. KG 1 11.251 11.876 175 2.837<br />
4. Süsswarenfabrik Berlin-Weissensee GmbH 1 2.632 1.109 8 912<br />
5. Grundrendite Liegenschaften & Co. Beteiligungs KG 7 72.817 26.814 846 18.996<br />
6. <strong>C<strong>AG</strong></strong> (1) & Co. Objekt Berlin, Alte Jakobstrasse KG 1 5.333 1.643 43 3.656<br />
7. <strong>C<strong>AG</strong></strong> (1) & Co. 2. Immobilien-Fonds-Gesellschaft KG 1 3 24.766 13.701 264 5.522<br />
8. <strong>C<strong>AG</strong></strong> (1) & Co. 3. Immobilien-Fonds-Gesellschaft KG 6 41.685 17.255 563 11.005<br />
9. <strong>C<strong>AG</strong></strong> (1) & Co. 4. Immobilien-Fonds-Gesellschaft KG 1 4 24.056 10.347 592 7.533<br />
10. <strong>C<strong>AG</strong></strong> (1) & Co. 5. Immobilien-Fonds-Gesellschaft KG 3 19.324 6.642 249 5.764<br />
11. <strong>C<strong>AG</strong></strong> (1) & Co. 6. Immobilien-Fonds-Gesellschaft KG 7 40.394 30.881 1.076 15.901<br />
12. <strong>C<strong>AG</strong></strong> (1) & Co. 7. Immobilien-Fonds-Gesellschaft KG 4 69 27.084 24.056 382 7.176<br />
13. Grundrendite Liegenschaften & Co. Immobilien-Fonds-Gesellschaft KG 2 31.110 17.599 510 11.002<br />
Total commercial property 11 140 341.056 213.020 5.064 100.437<br />
(1) Concordia Bau und Boden <strong>AG</strong><br />
C. Property under construction<br />
I. Commercial buildings<br />
1. <strong>C<strong>AG</strong></strong> (1) & Co. 7. Immobilien-Fonds-Gesellschaft KG 9.435 4.749 163<br />
2. <strong>C<strong>AG</strong></strong> (1) & Co. 8. Immobilien-Fonds-Gesellschaft KG 26.108 12.640 293<br />
Total property under construction 35.543 17.389 456<br />
(1) Concordia Bau und Boden <strong>AG</strong><br />
Total real estate<br />
Land (with and without buildings, and under construction) 2.054 406 487.092 471.256 6.439 116.002<br />
Schedule of individual properties<br />
B. II. Land with buildings – Commercial property<br />
1. Concordia Bau und Boden <strong>AG</strong> (participation: 100 %)<br />
Frankfurt, Rebstöcker Strasse 56 (1) Commercial 2 5.044 2.585 38 47<br />
Hamburg, Welckerstrasse/Dammtorstrasse (2) Office, shop, restaurant 1 3.942 1.114 1.500<br />
Düsseldorf, Sternwartstrasse 42 (2) Offices 1 1.565 2.147 22 326<br />
Meckenheim, Heidestrasse/Eichelkampstrasse (2) Light industry 9 2.588 8.048 211<br />
Kerpen-Sindorf, Am Gewerbehof (2) (3) Light industry 5 1.576 10.564 137<br />
Dortmund, Giesweg/Walter-Welp-Strasse (2) Light industry 3 900 3.926 83<br />
Unna, Heisenbergstrasse (2) Light industry 9 3.451 11.344 271<br />
Total 30 19.066 39.728 60 2.575<br />
(1) Refurbished in 19<strong>98</strong> (2) As per 31.12.19<strong>98</strong> subsumed by Concordia Bau und Boden <strong>AG</strong> (3) In 19<strong>98</strong>, 3 buildings were sold<br />
34
Real Estate Administration Division<br />
Location Usage/housing Building units/ Usable space Plot Parking Annual net<br />
units buildings (sections) m 2 m 2 spaces rent /TDM<br />
2. Aktiengesellschaft für Industriebeteiligungen & Co. Stuttgart-Zentrum KG (participation: 100 %)<br />
Stuttgart, Eberhardstr./Tübinger Str./Christophstr. (1) Office, shop 5 5 17.192 8.052 244 6.303<br />
Oberstaufen, In Pfalzen Hotel, Practice 1 4.346 3.317 52 1.255<br />
Total 5 6 21.538 11.369 296 7.558<br />
(1) Annual net rent for total area<br />
3. Concordia Bauträger GmbH & Co. KG (participation: 50 %)<br />
Rastatt, Karlsruher Strasse Hotel, restaurant, practice, DIY market 1 11.251 11.876 175 2.837<br />
4. Süsswarenfabrik Berlin-Weissensee GmbH (participation: 100 %)<br />
Düsseldorf, Stresemannstr. 12 Offices, residential 7 1 2.632 1.109 8 912<br />
5. Grundrendite Liegenschaften & Co. Beteiligungs KG (participation: 50 %)<br />
Dortmund,Königswall 1 (1) Offices, shopping, hotel 3 21.215 6.9<strong>98</strong> 243 6.471<br />
Hannover, Lister Str. 6-18 (1) Offices, shopping, hotel 4 51.602 19.816 603 12.525<br />
Total 7 72.817 26.814 846 18.996<br />
(1) Annual net rent for total area<br />
6. Concordia Bau und Boden <strong>AG</strong> & Co. Objekt Berlin Alte Jakobstrasse KG (participation: 50 %)<br />
Berlin-Mitte, Alte Jakobstrasse 83/84 Offices, shopping 1 5.333 1.643 43 3.656<br />
7. Concordia Bau und Boden <strong>AG</strong> & Co. 2. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Hamburg, Stresemannstrasse 342 (1) Offices, shopping 1 1 9.358 5.026 185 3.617<br />
Berlin-Weissensee, DGZ, Wassily-Kandinsky-Bau Offices 1 15.408 8.636 1.782<br />
Berlin-Weissensee, DGZ-Ring, parking spaces Parking spaces 1 39 79 123<br />
Total 1 3 24.766 13.701 264 5.522<br />
(1) Annual net rent incl. rental guarantee<br />
8. Concordia Bau und Boden <strong>AG</strong> & Co. 3. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Cologne, Breite Strasse 100 Offices, shopping 1 5.290 1.417 3 1.463<br />
Cologne, Höninger Weg 115 Offices, shopping 2 6.270 1.500 96 525<br />
Cologne, Sibille-Hartmann-Strasse 2 - 8 Offices 2 16.805 6.635 190 3.028<br />
Berlin-Weissensee, Andreas-Feininger-Bau, DGZ (1) Offices 1 13.320 7.703 274 5.<strong>98</strong>9<br />
Gesamt 6 41.685 17.255 563 11.005<br />
(1) Annual net rent incl. rental guarantee<br />
9. Concordia Bau und Boden <strong>AG</strong> & Co. 4. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Cologne, Graeffstrasse 35/Subbelratherstrasse 24 Shopping, offices 1 1 5.652 1.956 113 1.614<br />
Cologne, Graeffstrasse 5 (1) Offices 2 8.969 3.579 316 2.014<br />
Berlin-Weissensee, Werner-Graeff-Bau, DGZ (1) Offices 1 9.435 4.812 163 3.905<br />
Total 1 4 24.056 10.347 592 7.533<br />
(1) Annual net rent incl. rental guarantee<br />
10. Concordia Bau und Boden <strong>AG</strong> & Co. 5. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Cologne, Bernhard-Feilchenfeld-Strasse 9 - 11 (1) Offices 2 13.024 3.666 190 2.928<br />
Erfurt, Futterstrasse/Meienbergstrasse Hotel, shopping 1 6.300 2.976 59 2.836<br />
Total 3 19.324 6.642 249 5.764<br />
(1) Annual net rent incl. rental guarantee<br />
35
Report of the Board of Directors<br />
Location Usage Housing Building units/ Usable Plot Parking Annual net<br />
units building(sections) space m 2 m 2 spaces rent/TDM<br />
11. Concordia Bau und Boden <strong>AG</strong> & Co. 6. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Montanushof, Grevenbroich, Ostwall 31 (1) Shopping centre, hotel 3 27.<strong>98</strong>5 27.000 847 8.806<br />
Berlin, Alte Jakobstrasse 77 (2) Offices, shopping 1 1.<strong>98</strong>5 839 76 1.212<br />
Berlin, Alte Jakobstrasse 78 (2) Offices, shopping 1 1.645 687 49 977<br />
Berlin, Alte Jakobstrasse 96-99 (2) Offices, shopping 1 2.313 450 23 1.284<br />
GbR Berlin, Alte Jakobstrasse 79/80 (2) Offices, shopping 1 6.466 1.905 81 3.622<br />
Total 7 40.394 30.881 1.076 15.901<br />
(1) Annual net rent as per general lease<br />
(2) Annual net rent incl. rent guarantee<br />
12. Concordia Bau und Boden <strong>AG</strong> & Co. 7. Immobilien-Fonds-Gesellschaft KG (participation: 50 %)<br />
Hagen-Hohenlimburg Shopping 1 889 1.731 19 136<br />
Düsseldorf-Benrath, Schlossallee (1) Offices 2.140 1.678 32 709<br />
Cologne (div.) Shopping, offices, social institute 24 4.378 2.778 861<br />
Leverkusen, Wiesdorfer Platz Shopping 11 4.706 2.086 1.438<br />
Oberhausen (div.)/ (1) for one building Shopping, residential 2 7 4.043 4.060 153 993<br />
Oberhausen, Bebelstrasse 212 Shopping 1 1.483 4.197 65 257<br />
Düsseldorf-Bilk, Sternwartstrasse (2) Office, wtih shop 1.347 720 217<br />
Bremen, Schnoor-Viertel, Wüstestätte 1 Shopping 1 120 76 81<br />
Wesseling, An Sankt Germanus Shopping 2 1.135 360 245<br />
Bensberg, Engelbertstrasse/Schlosstrasse (1) Shopping, offices 4 296 76 71<br />
Paffrath, Paffrather Strasse (1) Shopping 3 1.140 696 17 219<br />
Frankfurt-Niederursel I, (div.)/Praunheimerweg 2Shop, offices, residential 2 6 1.271 1.454 18 388<br />
Frankfurt-Niederursel II Shop, offices, residential 1.639 2.866 36 692<br />
Stuttgart, Fellbach-Schmiden Shopping 9 1.115 672 38 300<br />
Berlin-Weissensee, DGZ (1) Shopping <strong>98</strong>8 491 357<br />
Berlin-Mitte, Alte Jakobstrasse 76-77a (2) Shopping, offices 395 115 4 212<br />
Total 4 69 27.084 24.056 382 7.176<br />
(1) Annual net rent incl. guarantee cost until completion<br />
(2) After handing-over rental guarantee<br />
13. Grundrendite Liegenschaften & Co. Immobilien-Fonds-Gesellschaft KG (participation: indirect 50 %)<br />
Berlin-Weissensee, DGZ, “Umbo 1” (1) Offices 1 15.555 9.341 255 5.501<br />
Berlin-Weissensee, DGZ, “Umbo 2” (1) Offices 1 15.555 8.258 255 5.501<br />
Total 2 31.110 17.599 510 11.002<br />
(1) Annual net rent incl. rental guarantee<br />
C. I. Property under construction – Commercial buildings<br />
1. Concordia Bau und Boden <strong>AG</strong> & Co. 7. Immobilien-Fonds-Gesellschaft KG<br />
(for completed projects refer to the individual presentation B. II Pos. 12) (participation: 50 %<br />
Berlin-Weissensee, Gustav-Adolf-Strasse, DGZ, “Marianne-Brandt“-Bau offices 9.435 4.749 163<br />
Total 9.435 4.749 163<br />
2. Concordia Bau und Boden <strong>AG</strong> & Co. 8. Immobilien-Fonds-Gesellschaft KG<br />
(for completed projects refer to the individual presentation B. I Pos. 2)<br />
(participation: 50 %)<br />
Berlin-Prenzlauer Berg, Greifswalder Str., “Goldpunkt Center“ (1) offices, shopping 20.472 8.821 204<br />
Berlin-Weissensee, DGZ, “Louis-Held-Bau“ offices 5.636 3.819 89<br />
Total 26.108 12.640 293<br />
(1) The shopping units Erich-Weinert-Strasse and the first construction phase of the portfolio project have already been completed and<br />
handed over<br />
36
New office and hotel building “Alte Post” in Dortmund: Central situation, and 100 % let<br />
Real Estate Administration Division<br />
37
Report of the Board of Directors<br />
Real Estate Funds Division<br />
Between 1993 and 1995 Concordia<br />
Bau und Boden <strong>AG</strong> initiated and placed<br />
nine closed-end real estate funds. All<br />
the funds were set up as limited partnerships.<br />
Concordia Bau und Boden <strong>AG</strong><br />
holds a 50 per cent participation, either<br />
directly or through investment companies.<br />
The general and the limited partners<br />
contributed about DM 233 million<br />
each, bringing the volume of investment<br />
to about DM 1,5 billion.<br />
38<br />
DGZ office city Berlin-Weissensee:<br />
A successful union of refurbished existing<br />
and newly constructed modern buildings<br />
Our company thus ranks among the<br />
leading promoters of closed-end real<br />
estate funds in Germany.<br />
All the Concordia funds own real estate<br />
in East Germany, mainly in the former<br />
East Berlin. Seven of the funds have<br />
been enhanced by portfolio buildings,<br />
mainly fully let, in West Germany.<br />
After completion of the projects still<br />
under construction, the funds will have<br />
at their disposal a total of about<br />
360.000 m 2 of usable space.
Real estate funds use<br />
know-how potential<br />
Of the planned new-construction projects<br />
more than 72 per cent have been<br />
completed. That represents about<br />
87.000 m 2 . The fund management<br />
companies now have at their disposal a<br />
further four newly constructed buildings.<br />
Altogether 16 new-construction<br />
and modernisation projects, some as<br />
part-owned units, have been completed.<br />
Including the portfolio properties,<br />
324.000 m 2 of usable space have been<br />
completed. A further 36.000 m 2 or so<br />
are in the process of completion.<br />
The tax schemes for the funds, with<br />
high tax benefits on newly constructed<br />
properties under the Development<br />
Areas Act, have meanwhile been confirmed<br />
by the fiscal administration<br />
through government tax audits.<br />
Concordia Bau und Boden <strong>AG</strong> became<br />
liable to make payments under guarantees<br />
on completions and first-time<br />
lettings in the year under review. Guarantees<br />
on first-time lettings run in<br />
each case for 5 years from transfer of<br />
the property.<br />
Closed-end real estate funds<br />
Usable area in m 2<br />
■ East<br />
■ West<br />
■ Total<br />
16.000<br />
224.000 240.000<br />
Portfolio<br />
115.000<br />
5.000<br />
New building or<br />
modernisation<br />
120.000 131.000<br />
Real Estate Funds Division<br />
Vacancies in the Berlin properties, rental<br />
shortfall from projects not yet completed<br />
and lower than forecast rents<br />
mean that guarantee payments will also<br />
be necessary in future.<br />
The division is currently concentrating<br />
its efforts on completion of the remaining<br />
projects and conversion of rent<br />
guarantee payments into real rent<br />
agreements. The independence of the<br />
fund management companies is largely<br />
already assured even when rents are<br />
achieved which are lower than the<br />
guaranteed rents, through the guarantees.<br />
Letting successes in the current<br />
1999 financial year are easing Concordia<br />
Bau und Boden <strong>AG</strong>'s guarantee obligations<br />
considerably.<br />
The division will play a strategically important<br />
role in the future of the company.<br />
The core activity will not be restricted<br />
to the administration of the<br />
nine funds, but will also include the exploitation<br />
of know-how potential.<br />
Total<br />
229.000<br />
360.000<br />
39
Report of the Board of Directors<br />
Major Participations<br />
Concordia Bau und Boden <strong>AG</strong> has<br />
share participations in more than 70<br />
companies in Germany, the Netherlands<br />
and the USA. These are companies<br />
which hold and manage land and buildings<br />
(real estate investment companies),<br />
project development companies which<br />
carry out real estate projects, and the<br />
nine real estate funds initiated by<br />
Concordia Bau und Boden <strong>AG</strong>. Various<br />
companies were already subsumed into<br />
the group in 1997.<br />
The major group companies and participation<br />
interests are set out below.<br />
Within the framework of the further restructuring,<br />
the following companies<br />
have belonged to the <strong>AG</strong> since the<br />
19<strong>98</strong> financial year:<br />
■ Lingenbrink Grundstücks GmbH<br />
Gesellschaft für Beteiligungen und<br />
40<br />
Grundstücksverwaltung KG,<br />
Hamburg<br />
■ GfG Gesellschaft für Gewerbeliegenschaften<br />
& Co. KG, Cologne<br />
■ Concordia Wohnungsgesellschaft<br />
mbH & Co. Liegenschaften KG,<br />
Leipzig<br />
■ Gebrüder Vetter GmbH & Co. KG,<br />
Cologne<br />
■ Concordia Bau und Boden <strong>AG</strong> &<br />
Co. Objekt St. Wolfgangplatz KG,<br />
Munich<br />
■ GbR Düsseldorf, Sternwartstr./<br />
Fleher Str., Cologne<br />
■ GbR Hamburg, Welckerstrasse 10,<br />
Cologne.<br />
The sale of companies with portfolio<br />
buildings and of project development<br />
and operational companies is planned<br />
in the current financial year, also.<br />
Glass façade of the buildings “Umbo 1“ and<br />
“Umbo 2“ in the DGZ office city Berlin-Weissensee
Real Estate and Investment Fund Companies<br />
Montanushof Einkaufszentren Beratungs- und<br />
Vermietungsgesellschaft mbH,<br />
Cologne 100,0%<br />
Meteor Immobilienverwaltungsgesellschaft<br />
mbH,<br />
Cologne 95,0%<br />
Mundus Immobilienverwaltungsgesellschaft<br />
mbH,<br />
Cologne 95,0%<br />
Concordia Bauträger GmbH & Co. KG,<br />
Cologne<br />
Key participations of Concordia Bau und Boden <strong>AG</strong><br />
50,0%<br />
Grundrendite Liegenschaften & Co.<br />
Beteiligungs KG,<br />
Oberhausen 50,0%<br />
Concordia Bau und Boden <strong>AG</strong> & Co. Objekt Berlin,<br />
Alte Jakobstrasse KG,<br />
Oberhausen 50,0%<br />
Concordia Bau und Boden <strong>AG</strong> & Co. 2.-8. Immobilien<br />
Fonds-Gesellschaften KG,<br />
Oberhausen 50,0%*<br />
Grundrendite Liegenschaften GmbH & Co.<br />
Immobilien-Fonds-Gesellschaft KG,<br />
Oberhausen 50,0%*<br />
Participations<br />
Project Development and Operating Companies<br />
Aktiengesellschaft für Industriebeteiligungen<br />
& Co. Objekt Stuttgart-Zentrum KG,<br />
Stuttgart 100,0%*<br />
Aktiengesellschaft für Industriebeteiligungen,<br />
Stuttgart<br />
Hedvigsborg B.V.,<br />
Apeldoorn, Netherlands<br />
99,0%<br />
95,0%<br />
Goldpunkt Beteiligungs- und Grundstücksverwaltungsgesellschaft<br />
mbH,<br />
Berlin 95,0%<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
Markt Schwaben Burgerfeld KG,<br />
Cologne 95,0%<br />
Concordia Florida Properties Inc.,<br />
Miami, Florida<br />
75,0%<br />
* including the interests held by an investment company<br />
belonging to Concordia Bau und Boden <strong>AG</strong>.<br />
41
Report of the Board of Directors<br />
Employees<br />
Restructuring measures to maintain<br />
and increase competitiveness were not<br />
carried out without serious consequences<br />
also for the personnel structure.<br />
The acquisition and sale of companies,<br />
the merging of established positions in<br />
the interest of cost synergy, the reorganisation<br />
of business sectors such as<br />
marketing and letting and the building<br />
up of new operations resulted in changes<br />
in operating personnel in the group.<br />
Where personnel changes were not<br />
possible through natural personnel<br />
turnover, redundancies were effected<br />
in accordance with agreed redundancy<br />
schemes.<br />
The Board of Directors thanks all employees<br />
for their readiness to effect<br />
changes in the company and their determination<br />
to further the progress of<br />
the company with energy and commitment<br />
at a difficult time. The Supervisory<br />
Board has also by its constructive<br />
Analysis of number of employees<br />
Group 1995 to 19<strong>98</strong><br />
■ Salaried<br />
■ Non-salaried<br />
296<br />
42<br />
62<br />
1995 1996<br />
212<br />
123<br />
1997<br />
200<br />
154<br />
cooperation shared in the painful decisions<br />
of the Board of Directors.<br />
An average of 339 employees, male<br />
and female, were employed in the<br />
group in 19<strong>98</strong>, as against 354 the previous<br />
year. Various operations were<br />
contracted out to third parties.<br />
We shall in the future be relying even<br />
more on the personal responsibility and<br />
self-reliance of our employees. In so far<br />
as they see themselves as entrepreneurs<br />
working within an enterprise and<br />
conduct themselves accordingly they<br />
will perform decisive work for the outside<br />
presentation and competitiveness<br />
of their enterprise – and thus safeguard<br />
their jobs for the future.<br />
19<strong>98</strong><br />
201<br />
138<br />
Thanking employees for their<br />
commitment and energy
Central Administration Office of Concordia Bau und Boden <strong>AG</strong> in Cologne<br />
Berlin branch office of Concordia<br />
Bau und Boden <strong>AG</strong>:<br />
Tenant in the DGZ office city<br />
Employees<br />
43
Report of the Board of Directors<br />
Outlook<br />
The Federal German real estate market<br />
is about to undergo a change. The low<br />
point has been passed. Slightly better<br />
general economic conditions than in<br />
19<strong>98</strong> are anticipated in the current<br />
year.<br />
Low interest rates still favour home<br />
ownership. On the other hand, allowances<br />
will be lost as a result of the tax<br />
reform.<br />
Market participants hope that the situation<br />
will improve just as it is doing in<br />
the major cities of our European neighbours.<br />
Owing to the boom created by<br />
German reunification the cycle of development<br />
in the real estate business<br />
was delayed, so that the German market<br />
is still lagging behind development<br />
in the rest of Europe.<br />
The “old” real estate axiom that property<br />
in favourable locations with concepts<br />
aimed at target-groups will be in<br />
heavy demand is confirmed in the foreign<br />
capital cities and heavily populated<br />
areas. This is as true of the residential<br />
as it is of the commercial sector. To<br />
this extent we anticipate a correspondingly<br />
favourable development, since<br />
the property we offer for sale or for<br />
new and first-time letting meets the<br />
above criteria admirably.<br />
The change of trend, but also the quality<br />
of our property is reflected in the<br />
success of our lettings during the current<br />
year. In the first half of the year we<br />
let new and portfolio property totalling<br />
40.800 m 2 .<br />
At the location in Rebstöcker Strasse<br />
(near Gallus-Park), Frankfurt, a tenancy<br />
agreement was concluded with the<br />
WWF-Deutschland environmental<br />
foundation, a national organisation of<br />
the World Wildlife Fund for Nature, for<br />
1.800 m 2 . The property in Rebstöcker<br />
44<br />
Strasse is a portfolio building undergoing<br />
conversion with the agreement<br />
of the present user. The agreement<br />
concluded is for 12 years.<br />
In Stresemannstrasse, Hamburg-Altona,<br />
860 m 2 have been let to a financial<br />
services provider. As at all other West<br />
German sites, a revival of the market is<br />
detectable, so that altogether 65 per<br />
cent of the space in the Gustav-Stresemann<br />
building has now been let.<br />
In Cologne both the property at the location<br />
of Breite Strasse and Auf dem<br />
Berlich as well as the Colonius Centre at<br />
the junction of Subbelrather Strasse<br />
and Graeffstrasse has once again been<br />
fully let. Stadtwerke GmbH became<br />
the major lessee with over 3.500 m 2 at<br />
the Colonius-Center.<br />
It is to be assumed that in Berlin and<br />
Leipzig the rental property market is a<br />
classically structured one. However, in<br />
the government metropolis we are already<br />
detecting the new effects of the<br />
move of the parliament and government.<br />
Despite gloomy prophecies associations,<br />
lobbyists, organisations and<br />
institutions from home and abroad<br />
who have so far not chosen a place to<br />
live are already renting space.<br />
At Alte Jakobstrasse in the centre of<br />
Berlin and the DGZ office city Berlin-<br />
Weissensee new tenants moved in.<br />
Here altogether about 10.300 m 2<br />
have been let since the beginning of<br />
the year.<br />
A user concept with service provisions<br />
of every kind was developed and<br />
marketed for the full letting and the<br />
letting management of the DGZ office<br />
city development project located<br />
near the city. At the Impulse Centre<br />
created by us in the DGZ, young entrepreneurs<br />
are finding ideal starting<br />
conditions. At the German business<br />
start-up conference in Berlin in May
1999, the DGZ Impulse Centre was<br />
given an honourable mention as the<br />
first privately financed business startup<br />
centre in Berlin by its patron, the<br />
Federal Economics Minister, Werner<br />
Müller, and his counterparts from<br />
Berlin and Brandenburg.<br />
Our letting successes in Leipzig, one of<br />
the most difficult office locations with<br />
high vacancy levels should also be emphasised.<br />
At the Seemann-Karree located<br />
in the Grafisches Viertel we let<br />
3.400 m 2 during the first six months.<br />
That says much for the good location<br />
and the attractive concept of the office<br />
and business property.<br />
The Centre and Hotel Management<br />
sector reports progress both in letting<br />
and results. Our most extensive letting<br />
at the Eberhard Passage in Stuttgart is<br />
gratifying. In the Strauss-Innovation<br />
retail chain we have found a major<br />
lessee (about 2.000 m 2 ) who will attract<br />
further business and at the same time<br />
bring in more customers.<br />
The only hotel operated by us in<br />
Oberstaufen continues to be well patronised.<br />
That also applies to the hotel<br />
buildings leased to operating compa-<br />
Space let over the period in m 2<br />
1994<br />
69.667<br />
1995<br />
61.721<br />
1996<br />
43.807<br />
1997<br />
43.244<br />
Outlook<br />
nies like Dorint <strong>AG</strong> in Hanover and Erfurt<br />
and Astron <strong>Holding</strong> <strong>AG</strong> in Dortmund.<br />
As regards the marketing of owner-occupied<br />
flats we anticipate strong sales<br />
in the second half of the year. The sluggish<br />
run of business in the first few<br />
months has its causes in the general<br />
unease resulting from fiscal policy and<br />
“tax deferal” effects at the end of last<br />
year.<br />
We are developing a new marketing<br />
concept for the Goldpunkt residential<br />
owner-occupied building in the increasingly<br />
popular Prenzlauer Berg district<br />
in the centre of Berlin following the expiry<br />
of the tax concession under the<br />
Development Areas Act. The ready-tooccupy<br />
apartments are of interest both<br />
to owner-occupiers and capital investors.<br />
The sale and progress of the third construction<br />
phase of a residential building<br />
in the desirable Haidhausen district of<br />
Munich are running parallel and on<br />
schedule. In Düsseldorf-Benrath also,<br />
close to the castle, potential customers<br />
can view model homes in the completed<br />
construction phases.<br />
19<strong>98</strong><br />
65.462<br />
1–6 /1999<br />
40.800<br />
45
Report of the Board of Directors<br />
We anticipate that planning permission<br />
will be granted in the final quarter<br />
of 1999 for the Hamburg Billwerder<br />
Neuer Deich owner-occupied<br />
apartment building to be developed<br />
by us.<br />
To stimulate the sale of units in the<br />
exclusive Oceania Island apartment<br />
building, North Miami, Florida, we are<br />
developing a marketing strategy in<br />
Germany for potential purchasers.<br />
The wish of individuals to have a holiday<br />
or prestigious retirement home is<br />
driven as much by having an investment<br />
in the sunlight country of the<br />
USA as by other factors of economic<br />
and political stabilitiy. High taxes of<br />
home and an unstable Euro make it<br />
still easier to make the step to having<br />
an investment with growth potential.<br />
By restructuring our marketing system<br />
into a client-oriented and project or<br />
property-related organisation we are<br />
optimising our market position. We<br />
anticipate additional purchase impulses<br />
from the measures, such as<br />
satisfaction schemes, taken to retain<br />
46<br />
customers. External marketing partners<br />
are utilised, according to the property.<br />
In the Project Development Division<br />
work on residential and commercial<br />
property is proceeding on schedule.<br />
The project plans at the historic Spittelmarkt<br />
site in the centre of Berlin are<br />
taking on concrete forms for realisation.<br />
Concordia Bau und Boden <strong>AG</strong><br />
owns a number of select plots of land<br />
within walking distance of the ministries,<br />
places of cultural interest, business<br />
associations and business quarters<br />
like Friedrichstrasse, Gendarmenmarkt<br />
and Unter den Linden.<br />
Work will begin with an investment<br />
partner during the year on the construction<br />
of an area complex. Apartments,<br />
offices and a hotel are planned<br />
for this site.<br />
As part of the optimisation strategy<br />
reductions will be made in the administration<br />
sector personnel during<br />
1990. In the EDP sector we are currently<br />
expanding capacities to meet<br />
Portfolio building in Berlin-Pankow:<br />
User-oriented project development<br />
Prestigious owner-occupied apartments in<br />
Munich-Haidhausen: a desirable residence
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dc�cd�cddc��dd<br />
Sales project “Burgblick” in Landstuhl/<br />
Kaiserslautern: Low-price portfolio apartments<br />
with a space up to 124 m 2<br />
the additional requirements in the<br />
areas of tenant management, apartment<br />
administration and services related<br />
to real estate.<br />
In preparation for the changeover of<br />
EDP systems to the millennium and<br />
the Euro the necessary measures have<br />
been taken to guarantee the operability<br />
of these systems.<br />
As part of our expansion of the real<br />
estate-related service sector we have<br />
with the creation of the VKK Versicherungs-Kontor<br />
Köln GmbH also<br />
gained a foothold in the financial services<br />
sector. This company is of interest<br />
from an earnings point of view for two<br />
reasons:<br />
■ It is managed as a company-owned<br />
insurance agency and administers<br />
the parent company's agreements<br />
with brokerages.<br />
■ It operates in the external market as<br />
an independent insurance broker<br />
with emphasis on commercial risks.<br />
The GBS Gebäude-Betreuungs-Service<br />
GmbH renamed in 19<strong>98</strong> is being expanded<br />
step by step, also with the aid<br />
of its regional bases. At the same time<br />
we are investing increasingly in logistics<br />
systems and equipment.<br />
Outlook<br />
Sales project “Oceania Island“ in North Miami/Florida:<br />
Capital investment and retirement residence<br />
47
Report of the Board of Directors Outlook<br />
Making good use of the capital resources<br />
secured the further restructuring<br />
measures and our strategic reorientation<br />
we shall use the potential earnings<br />
available within the company`s divisions<br />
to open up new fields of business<br />
in the sector of services related to real<br />
estate.<br />
We view the company's prospects for<br />
1999 favourably and are looking forward<br />
to a better future.<br />
48<br />
Prominent tenants of Concordia Bau und Boden <strong>AG</strong>: McDonald’s and Strauss Innovation<br />
Sunny terrace of an apartment in the Oceania Tower: View into a sunny future
19<strong>98</strong> Management Report<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Management Report <strong>AG</strong><br />
49
Management Report <strong>AG</strong><br />
19<strong>98</strong> Management Report<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Development of the business<br />
In 19<strong>98</strong> the process of general economic recovery in Germany was<br />
driven mainly by the export economy and to a lesser extent by sectors<br />
of the domestic economy like consumption and investments.<br />
The improvement in general economic conditions barely touched<br />
the real estate sector. Nor did the historically low mortgage interest<br />
rates and direct and fiscal government aid do anything to generate<br />
an appreciable upswing here.<br />
In the 19<strong>98</strong> financial year the business activity and development<br />
of Concordia Bau und Boden <strong>AG</strong> were decisively influenced by the<br />
general economic background conditions, the still difficult economic<br />
environment in the real estate business and the continuing restructuring<br />
of the company.<br />
The conditions specific to this business also affected the operations<br />
of Concordia Bau und Boden <strong>AG</strong> as a public limited company operating<br />
nationwide in the sectors of project development, real estate<br />
management and real estate funds.<br />
In our project development division the priority in the financial year<br />
centred on the completion of the residential and commercial projects<br />
still under construction despite unsatisfactory sales expectations<br />
and on the continuation of planning and other measures for<br />
future project development. However, no new projects could be<br />
undertaken on the scale planned.<br />
In our real estate management division the goals set for the letting<br />
of space were achieved and to some extend even exceeded.<br />
Apartment rentals were satisfactory despite the fall in new lettings<br />
on the national average. As regards commercial property the difficulties<br />
consisted as before with over-supply in the new Federal<br />
Länder and the effects it is having on the level of rentals.<br />
In Berlin, where Concordia Bau und Boden <strong>AG</strong> is especially committed,<br />
major individual contracts were concluded in the commercial<br />
lettings sector in 19<strong>98</strong>. On the whole the situation with the new<br />
letting of commercial property in the 19<strong>98</strong> financial year was characterised<br />
by potential enquirers about commercial property hoping<br />
to profit from the low level of rentals before parliament moved location<br />
after mid-1999.<br />
In the real estate funds division there remain obligations from the<br />
guarantees given to the nine real estate funds set up by us. As in<br />
previous years, the funds companies were in a position to pay out<br />
dividends to the shareholders.<br />
The measures to restructure our company continued to be implemented<br />
in the financial year and adapted to fit projects and build-<br />
50<br />
ings. This gave rise to an additional financial requirement and a further<br />
charge on results. The restructuring measures also include the<br />
integration of associated companies through accrual to Concordia<br />
Bau und Boden <strong>AG</strong>.<br />
Through further placement of the bonds of the 100 %-held subsidiary<br />
company CCP Commercial City Properties N.V., Amsterdam,<br />
Netherlands, there was a further inflow of funds to cover liquidity<br />
requirements. Further contributions to liquid funds and the results<br />
were made by the shareholders during the financial year.<br />
During the financial year our company maintained, besides the registered<br />
offices of our company in Oberhausen, branches in Cologne<br />
(central administration) and Berlin and local offices in Dortmund,<br />
Hanover, Hamburg, and Stuttgart.<br />
Assets, Finance and Revenue<br />
The completion and hand-over of commercial buildings and<br />
owner-occupied apartments influences directly the level of sales results<br />
connected with them. The sales results from housing management<br />
were at KDM 24.154 relatively constant by comparison with<br />
the previous year, whereas returns from the sale of land fell to KDM<br />
48.624 owing to the reduction of completions. Also other deliveries<br />
and services, which include the projects set up by us as general<br />
contractor, fell to KDM 87.992.<br />
For the first time since the beginning of the company restructuring<br />
an annual retained profit of KDM 1.339 was shown for the 19<strong>98</strong><br />
financial year. Also, again, the measures carried out principally in<br />
connection with further restructuring and reorganisation and compensated<br />
for by contributions made by the shareholders were reflected<br />
in the results from ordinary business.<br />
The balance sheet total increased by 13 % over the previous year<br />
owing to the accrual of further subsidiary companies. Fixed assets<br />
now contribute a share of 23 % and current assets a share of 77<br />
% of the increased balance sheet total.<br />
The share capital now amounts to KDM 180.172. The capital reserve<br />
is shown at KDM 50.379 and the revenue reserves unchanged<br />
at KDM 23.300. The equity capital shown in the balance<br />
sheet has increased by KDM 1.883 by comparison with the previous<br />
year and represents a share of 15 % of the substantially increased<br />
balance sheet total. The annual retained profit of KDM<br />
1.339 has the effect that the balance sheet deficit is reduced to<br />
KDM 117.890 and the equity capital has increased to KDM<br />
206.854.
As in the previous year, the increased liquid funds requirement in<br />
the project development division could not be financed by borrowing<br />
to the required extent owing principally to the state of the economy<br />
in general, the financing charges and the rental situation for<br />
commercial buildings in the new Federal Länder.<br />
Fixed-interest bonds up to a total value of KDM 175.000 and convertible<br />
bonds up to a value of KDM 87.336 were facilitated<br />
through our subsidiary company CCP Commercial City Properties<br />
N.V. After full placement of the convertible bonds liquid funds of<br />
up to KDM 117.150 are accruing to us from the further placement<br />
of the fixed-interest bonds and serve to consolidate the financing<br />
of the operating assets.<br />
Long-term loans for the property investments (portfolio properties)<br />
and short-term loans for the purchase of land and short-term interim<br />
loans for project development measures have all been<br />
secured by entry in the Land Register. The loans granted by the<br />
banks were maintained in the financial year.<br />
Development and Forecast<br />
Better economic background conditions than in the previous year<br />
are anticipated for the German real estate market in the current financial<br />
year. Low interest rates and an altogether improved economic<br />
climate with prospects of growth favour the acquisition of<br />
commercial property and even of residential property.<br />
Already a change of trend for the German real estate market is discernible.<br />
The cycle of real estate business in Germany was arrested<br />
by the boom following German reunification, so that the German<br />
real estate market continues to lag behind the upward trend<br />
in neighbouring European countries. On the office and commercial<br />
property lettings market there was a clear increase in demand<br />
for newly constructed space in our East German properties. The<br />
level of unoccupied space was reduced, although the rentals<br />
achieved did not come up to the level of those in the West.<br />
In the project development division the work on residential and<br />
commercial property under construction is continuing on schedule.<br />
In this division also in the future core sector of company operations<br />
the plans for realising projects in the Spittelmarkt quarter in the<br />
centre of Berlin are taking a definite shape. Further, the work on<br />
and planning for three construction projects in Munich and Berlin<br />
are being continued.<br />
Also the development of projects on non-group-owned sites is<br />
taking on a definite shape as a further profit-oriented field of business<br />
in the project development sector. In the current financial year we<br />
shall be carrying out a project in a major West German city for an<br />
outside investor.<br />
Management Report <strong>AG</strong><br />
The management of the company's own real estate and the management<br />
of the closed-end real estate funds is being further expanded<br />
by the acceptance of outside orders.<br />
The range of services related to real estate was expanded by the<br />
creation of the VKK Versicherungs-Kontor Köln GmbH.<br />
Also, in the EDP sector we are expanding capacity in order to meet<br />
the increased requirements of tenant management, apartment<br />
management and services related to real estate.<br />
In order to be able to put the company goals into effect successfully,<br />
support will also be required on the part of the shareholders<br />
to supplement the improved general economic environmental conditions<br />
in the real estate management sector. In the current financial<br />
year the profit contributions of the various business sectors are<br />
still being influenced by existing charges arising from the restructuring.<br />
As part of the optimisation strategy in the various company<br />
divisions a further reduction in the level of employees will be<br />
unavoidable.<br />
We nevertheless consider the company's prospects in 1999 to be<br />
favourable and view the future with confidence. Through the capital<br />
increase to be approved by the general meeting of shareholders,<br />
a further capital provision and further restructuring measures<br />
borne by the shareholders and the re-oriented corporate strategy<br />
we shall further enhance the profit potential available in the<br />
company divisions and also gain new areas of business in the real<br />
estate services sector.<br />
Despite the restructuring measures already implemented Concordia<br />
Bau und Boden <strong>AG</strong> will continue to be dependent on developments<br />
in the German real estate market, particularly in Berlin, and<br />
on the options for financing and the adequate provision of liquid<br />
funds.<br />
An information system is being further developed for the management<br />
to enable risks from the diversified business operations and<br />
developments which could jeopardise the continuing existence of<br />
the company to be recognised and better assessed in time. To ensure<br />
the functionability of the EDP systems the necessary measures<br />
have been taken to prepare the EDP systems for the changeover<br />
to the new millennium and the Euro.<br />
Again an improved result on the previous year is anticipated for the<br />
1999 financial year.<br />
51
Management Report <strong>AG</strong><br />
Personnel<br />
211 salaried and non-salaried employees were employed at Concordia<br />
Bau und Boden <strong>AG</strong> in the course of the financial year, as<br />
against 214 the previous year.<br />
The restructuring measures to maintain the company and increase<br />
its competitiveness could not be implemented without negative<br />
effects for the personnel structure.<br />
The Board of Directors thanks all the employees for their willingness<br />
and commitment to further the progress of the company at a<br />
difficult time. Our thanks are also due to the employee representatives<br />
for their work during the financial year.<br />
Relations with associated companies<br />
According to notifications dated 9 September 1996 and 20 January<br />
1997 and publication dated 4 March 1997 the share of the voting<br />
rights of Concordia Bau und Boden <strong>AG</strong> held by Unifina <strong>Holding</strong><br />
<strong>AG</strong>, Winterthur, Switzerland, is 26,42 %.<br />
According to notifications dated 22 and 29 April 1997 the share of<br />
the voting rights of Concordia Bau und Boden <strong>AG</strong>, Oberhausen,<br />
held by the Caisse des Dépôts et Consignations had fallen below<br />
25 % to 0 %. In the same notification Sopaco Beteiligungs- und<br />
Verwaltungsgesellschaft mbH, Frankfurt am Main, advised that its<br />
share of the voting rights of Concordia Bau und Boden <strong>AG</strong> had risen<br />
above 25 % to 26 %. Under Art. 22 (1) No. 2 WpHG these<br />
voting rights must be assigned in full to the Caisse des Dépôts et<br />
Consignations.<br />
Bankgesellschaft Berlin Aktiengesellschaft, Berlin, as parent company,<br />
advised on 14 May 1999 that the share of the voting rights<br />
in our company transferred under the terms of the fusion with Berliner<br />
Bank <strong>AG</strong>, Berlin, is 7,53 %. The Senatsverwaltung für Finanzen<br />
made notification in a letter dated 21 April 19<strong>98</strong> that these<br />
voting rights must be assigned to it.<br />
Oberhausen, 5 July 1999<br />
52<br />
Concordia Bau und Boden Aktiengesellschaft<br />
Board of Directors<br />
Vogel Ditterich Thiebes
Financial Statements 19<strong>98</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Financial Statements <strong>AG</strong><br />
Notes to the Financial Statements<br />
Concordia Bau und Boden <strong>AG</strong> 54<br />
Changes in Fixed Assets<br />
Concordia Bau und Boden <strong>AG</strong> 62<br />
Balance sheet<br />
Concordia Bau und Boden <strong>AG</strong> 64<br />
Profit and Loss Account<br />
Concordia Bau und Boden <strong>AG</strong> 66<br />
Participations<br />
Concordia Bau und Boden <strong>AG</strong>/Group 82<br />
53
Financial Statements <strong>AG</strong><br />
Notes to the Financial Statements 19<strong>98</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
General Information<br />
On the basis of the circumstances prevailing at the balance sheet<br />
date, Concordia Bau und Boden <strong>AG</strong> is regarded pursuant to Art.<br />
290 HGB as the parent company of a group with its registered office<br />
in Germany. It is accordingly required to draw up group financial<br />
statements and a group management report as at the end of<br />
the financial year.<br />
At the same time Concordia Bau und Boden <strong>AG</strong> is an associated<br />
company of Unifina <strong>Holding</strong> <strong>AG</strong>, Winterthur, Switzerland, the<br />
Caisse des Dépôts et Consignations, Paris, France, through its 100 %<br />
subsidiary company Sopaco Beteiligungs- und Verwaltungsgesellschaft<br />
mbH, Frankfurt am Main, and of Bankgesellschaft Berlin <strong>AG</strong>,<br />
Berlin.<br />
Comments on the Financial Situation<br />
A stabilisation was discernible in the still difficult real estate market<br />
in the 19<strong>98</strong> financial year. The over-supply of commercial property<br />
in the new Federal Länder continued to affect real estate purchase<br />
prices and the level of property rentals. These general background<br />
conditions also influenced the financial situation of Concordia Bau<br />
und Boden <strong>AG</strong>. Taking into account property and project-related<br />
adjustments, the measures to reorganise and restructure the company<br />
were continued. This entailed a charge on results and a further<br />
finance requirement.<br />
In the financial year a patronage agreement was concluded between<br />
the shareholders and Concordia Bau und Boden <strong>AG</strong>, which,<br />
if called upon, provides for restitution. Our company was supported<br />
during the financial year by further measures taken by shareholders<br />
regarding results.<br />
The effects of the economic situation, the measures taken to reorganise<br />
the company and the contributions made by the shareholders<br />
with regard to results and capital are reflected in the balance<br />
sheet and the expenditure and revenue items, particularly the<br />
entry of claims on shareholders, valuation of stocks, the creation<br />
and retransfer of provisions and the extraordinary result and are<br />
explained in greater detail in the following paragraphs.<br />
Accounting and Valuation Principles<br />
The balance sheet and the profit and loss account are classified in<br />
accordance with the provisions of 6 March 1<strong>98</strong>7, prescribed for<br />
residential property companies.<br />
The profit and loss account was drawn up in accordance with the<br />
total-cost method.<br />
54<br />
The valuations have been made in accordance with the going concern<br />
concept. The basis for this is the forecast of the continuation<br />
and the degree of realization of the restructuring and development<br />
plan at the balance sheet date, taking into consideration the<br />
changes in guidelines and measures agreed by the shareholders under<br />
the modified restructuring plan.<br />
Intangible assets are valued as a matter of principle at purchase<br />
cost, less scheduled straight-line amortization.<br />
Tangible fixed assets are valued at purchase or manufacturing cost,<br />
less scheduled depreciation taking into account.<br />
Scheduled depreciation of buildings is recorded straight-line and by<br />
the declining balance method on the basis of the tax regulations<br />
under Art. 7 EStG [German Income Tax Act].<br />
In the case of moveable assets, depreciation is recorded straightline<br />
and by the declining balance method within the framework of<br />
the German tax regulations. In this connection, a full year's depreciation<br />
is applied to additions during the first half of the year, and<br />
half the annual charge to additions during the second half of the<br />
year.<br />
Minor value assets are written off completely in the year acquired,<br />
and recorded as a disposal.<br />
Investments are recorded at cost, current book value and at the<br />
lower values attributable to them; interest-free loans are discounted<br />
as a matter of principle to their present value.<br />
Write-downs were necessary in respect of participations, where not<br />
value-guaranteed, as a result of the sale of property in associated<br />
undertakings.<br />
Interests in associated undertakings and shares in participations,<br />
where the going concern principle was abandoned in the business<br />
year with regard to the properties carried by the subsidiaries, are<br />
shown at their liquidation values.<br />
Land intended for sale, buildings and other stocks are recorded as<br />
a matter of principle at purchase or manufacturing cost. Manufacturing<br />
cost includes, in addition to the directly attributable costs,<br />
a share of the administrative overheads, interest on borrowings and<br />
other financial costs capable of being capitalized for the period of<br />
construction. The principle of lower of cost or net realizable value<br />
is observed.<br />
Debtors and other assets are shown at face value. Where not<br />
value-guaranteed, appropriate provisions are recorded to cover<br />
foreseeable risks.
Marketable securities are shown at the lower of purchase cost or<br />
stock market prices.<br />
Participating rights capital was valued at the issue price including<br />
proportionate premium.<br />
The capital reserve comprises amounts contributed in the previous<br />
year in connection with the increase in the equity for cash and by<br />
conversion of loans and realized on the issue by a subsidiary of<br />
bonds with option rights for conversion into shares in Concordia<br />
Bau und Boden <strong>AG</strong> and the conversion of bonds of a subsidiary into<br />
shares in Concordia<br />
Write-downs made for tax purposes are shown under untaxed special<br />
reserves in accordance with German legal provisions.<br />
Provisions for pensions and similar obligations are calculated at actuarial<br />
present value, applying an interest rate of 6 %. The company<br />
has by virtue of the statement by the Main Committee of the<br />
Institute of German Certified Public Accountants on the use of the<br />
guide tables for calculation of pension provisions made use of the<br />
right to distribute the allocation requirement in stages over a period<br />
of four years on the basis of the modified guide tables.<br />
The remaining provisions for liabilities and charges take into account<br />
contingent losses, as well as all foreseeable risks under contracts<br />
which have still to be fulfilled, and uncertain obligations.<br />
Creditors are recorded at the repayment amounts.<br />
Assets and liabilities in foreign currencies are valued as a matter of<br />
principle at the exchange rate as of the date of the business transaction<br />
or at the closing rate, observing the principle of lower of cost<br />
or market value.<br />
Financial Statements <strong>AG</strong><br />
55
Financial Statements <strong>AG</strong><br />
Notes and Explanations to the Balance Sheet<br />
Fixed Assets<br />
The breakdown and changes of the fixed assets are shown in the<br />
fixed asset movements schedule, which forms part of the notes to<br />
the financial statements.<br />
The schedule of significant investments held by Concordia Bau und<br />
Boden <strong>AG</strong> as of 31 December 19<strong>98</strong> is presented separately, and<br />
will be filed at the Local Court in Oberhausen.<br />
Land intended for sale and other stocks<br />
The stocks primarily comprise land intended for sale for project development<br />
purposes and services rendered under general contractor<br />
contracts. The whole of any advance payments received are deducted<br />
from the stocks. The advance payments received for property<br />
with uncompleted buildings are completely secured by cash deposits.<br />
Debtors and other assets<br />
The debtors and other assets in the amount of KDM 645.642 have<br />
a remaining term up to one year. The amounts owed by undertakings<br />
in which participations are held amounting to KDM<br />
346.336 are due within one year.<br />
56<br />
Liquid funds<br />
In order to secure advance payments received and bank loans,<br />
liquid funds of KDM 258.293 are held on deposit.<br />
Deferred items<br />
The deferred items relate to a disagio in in the amount of KDM<br />
1.221 from loans granted to associated companies.<br />
Capital and reserves<br />
Subscribed capital<br />
The company’s share capital has been increased in the year under<br />
review as follows:<br />
KDM<br />
As at 1 January 19<strong>98</strong> 180.000<br />
Increase of capital by exchange of<br />
convertible bonds into shares 172<br />
As at 31 December 19<strong>98</strong> 180.172<br />
The share capital was converted into no par value shares pursuant<br />
to a resolution of the General Meeting of 23 July 19<strong>98</strong>. The share<br />
capital is thus divided into 36.034.418 individual share certificates.<br />
The shares are bearer shares. 34.418 ordinary shares with a calculated<br />
value of DM 172.090 have been created by conversion of<br />
convertible bonds in the framework of the capital increase‚.<br />
As at 31 December 19<strong>98</strong> the capital authorized for issuance up to<br />
15 July 2002 amounts to KDM 45.000 and the capital authorized<br />
for issuance up to 23 July 2003 amounts to KDM 45.000. The capital<br />
authorized for issuance therefore totals KDM 90.000. The<br />
authorized but unissued capital amounts to KDM 90. 000; a portion<br />
of this capital is restricted to drawing by bearers of convertible<br />
debentures issued by the company, a portion of this capital,<br />
amounting to KDM 30.000 is available up to 15 July 2002 and a<br />
further portion up to 15 July 2003.<br />
Participating rights capital<br />
140.000 participating right certificates with an original nominal<br />
value of KDM 140.000 were issued, and recorded under the capital<br />
and reserves in accordance with the issuance terms, since the<br />
criteria of subordinate ranking, long-term nature and participation<br />
in losses are fulfilled. They were issued at an issue price of<br />
DM <strong>98</strong>9,80 per nominal amount of DM 1.000,00. The term of<br />
the participating certificates will expire at the latest on 31 December<br />
2011. In the year under review participating right certificates
with a nominal value of KDM 77.000 were exchanged into share<br />
capital as an increase in capital other than for cash.<br />
An amount of KDM 8.450 of the 1995/2000 bond with warrants<br />
issued by CCP Commercial City Properties N.V. and passed through<br />
as a loan to Concordia Bau und Boden <strong>AG</strong> after legal amendments,<br />
was recorded additionally as participating rights capital.<br />
Capital reserve<br />
The company’s capital reserve developed in the year under review<br />
as follows:<br />
KDM<br />
As at 1 January 19<strong>98</strong> 50.050<br />
Addition from<br />
Premium for the exchange of<br />
convertible bonds into shares 329<br />
As at 31 December 19<strong>98</strong> 50.379<br />
The capital reserves include KDM 23.000, paid in by way of premium<br />
in connection with the increase of the share capital, as well<br />
as by way of further payment by the shareholders in the amount<br />
of KDM 24.050. A further amount of KDM 3.000 relates to the remuneration<br />
paid by CCP Commercial City Properties N.V., for the<br />
transfer of 1.500.000 convertible debentures which entitle the<br />
holders to subscribe for 1.500.000 shares in Concordia Bau und Boden<br />
<strong>AG</strong>, each with a nominal value of DM 5,00 as well as premium<br />
in connection with the exchange of convertible bonds into shares.<br />
Revenue reserves<br />
The legal reserves and the other revenue reserves were unchanged<br />
during the year under review.<br />
Untaxed special reserves<br />
The tax-privileged revaluations (Reserve under Art. 6b EStG)<br />
amount to KDM 1.394 after retransfer of a partial amount (as<br />
against KDM 1.569 in 1997).<br />
Provisions for liabilities and charges<br />
Financial Statements <strong>AG</strong><br />
The tax provisions total KDM 11.287 after retransfer of a partial<br />
amount for deferred taxes and the addition for other tax risks<br />
(KDM 4.000).<br />
The provisions for mining damage set up for damage to the environment<br />
from earlier mining activities primarily relate to provisions<br />
for permanent damage, and for preservation and supplementary<br />
measures carried out by the Emscher Co-operative Association.<br />
The other provisions for liabilities and charges have primarily been<br />
constituted for:<br />
31.12.19<strong>98</strong> 31.12.1997<br />
KDM KDM<br />
Unbilled construction work 39.365 51.773<br />
Litigation risks and costs 9.636 12.547<br />
Outstanding fund expenses 7.674 10.917<br />
Risks from comfort letters<br />
for subsidiaries 4.882 4.206<br />
Guarantee obligations 4.080 1.190<br />
Lettings risks 4.033 5.678<br />
Likely transfer of losses from<br />
associated companies 500 49.338<br />
57
Financial Statements <strong>AG</strong><br />
Creditors<br />
The repayment schedule of creditors is as follows:<br />
19<strong>98</strong> 1997<br />
total repayment schedule total repayment schedule<br />
less than more than less than more than<br />
1 year 5 years 1 year 5 years<br />
KDM KDM KDM KDM KDM KDM<br />
Bank loans<br />
and overdrafts 5<strong>98</strong>.655 574.6001) 21.458 428.790 402.579 20.076<br />
Trade creditors<br />
Amounts owed to<br />
65.682 65.682 0 54.387 54.387 0<br />
associated undertakings<br />
Amounts owed to undertakings<br />
308.973 22.738 0 256.276 46.841 0<br />
in which participations are held 67.630 67.630 0 54.435 54.435 0<br />
Other creditors<br />
-of which taxes<br />
KDM 1.217 (1997 KDM 753)-<br />
-of which social security<br />
KDM 371 (1997 KDM 373)-<br />
25.433 25.433 0 31.561 31.561 0<br />
1.066.373 756.083 21.458 825.449 589.803 20.076<br />
1) The bank loans and overdafts falling due within one year relate to purchases of land and intermediate construction loans for project<br />
development measures in the amount of KDM 506.828.<br />
The bank loans and overdrafts are almost fully secured in the amount of KDM 549.447 by land charges and other securities such as cash<br />
deposits, assignments and guarantees.<br />
Contingent liabilities<br />
Guarantees<br />
Guarantees have been granted to banks for loans in the amount<br />
of KDM 234.419 (1997 KDM 2<strong>98</strong>.426), of which KDM 184.100<br />
(1997 KDM 243.250) are for associated undertakings structured<br />
as limited partnerships (KG) or private corporations.<br />
Liabilities resulting from guarantee agreements<br />
An irrevocable and unconditional guarantee declaration has been<br />
given by the company to CCP Commercial City Properties N.V.,<br />
Amsterdam, Netherlands, in connection with the following<br />
convertible bonds issued by the latter:<br />
KDM<br />
Bonds with warrants 1995/2000 150.000<br />
Bond 1997/2002 (part of) 57.850<br />
Convertible bond 1997/2004 86.835<br />
58<br />
CCP Commercial City Properties N.V. has granted interest bearing<br />
loans from the proceeds of the issuance of the bonds to Concordia<br />
Bau und Boden <strong>AG</strong>.<br />
Legal joint and several liability as co-guarantor exists in favour of<br />
banks for loans of undertakings in which participations are held<br />
– structured as limited partnerships (KG) or private corporations<br />
(GbR) – in the amount of KDM 1.372.390. The related contractual<br />
joint and several liability as co-guarantor amounts to<br />
KDM 203.030.<br />
The <strong>AG</strong> has contractually guaranteed employment and investments<br />
in connection with the sale of interests in three undertakings<br />
in which participations were held. Concordia thereby incurred<br />
guarantee obligations in the original amount of KDM 134.006, of<br />
which KDM 24.506 are for group undertakings.<br />
Concordia Bau und Boden <strong>AG</strong> has also issued comfort letters for<br />
various undertakings in which participations are held.
Other financial commitments<br />
The financial commitments under long-term rental, leasing and service<br />
agreements are payable as follows:<br />
1999 2000 2001<br />
KDM KDM KDM<br />
27.977 28.163 23.276<br />
The long-term rental agreements include rental agreements with<br />
associated undertakings (in 1999: KDM 26.851), for which there<br />
are corresponding rental revenues.<br />
The potential obligations relating to dormant claims in connection<br />
with the obligation to provide coal free of charge to employees of<br />
former mining operations amount to KDM 1.007 at 31 December<br />
19<strong>98</strong> (31.12.97 KDM 1.020).<br />
The obligations for project development purposes within the<br />
framework of general contractors' services and investments (capital<br />
commitments) amount to KDM 133.668 (31.12.97 KDM<br />
185.852).<br />
Further, there are contingent liabilities arising out of guarantees to<br />
undertakings in which participations are held, and in favour of<br />
banks.<br />
Notes and Explanatory Comments<br />
to the Profit and Loss Account<br />
Revenues<br />
The breakdown of revenues by types of activities is presented by<br />
the section headings in the profit and loss account.<br />
Other operating income<br />
The other operating income mainly comprises proceeds from the<br />
release of provisions for liabilities and charges pursuant to exemption<br />
(KDM 40.745), from amounts charged elsewhere (KDM<br />
51.757), assumption of accrual losses (KDM 27.478) and liabilities<br />
(KDM 11.359).<br />
Other operating charges<br />
Other operating charges primarily comprise allocations to other<br />
provisions for liabilities and charges (KDM 37.376)), accrual losses<br />
(KDM 27.478), administrative expenses (KDM 18.355), fund costs<br />
(KDM 4.116), cost of sales (3.953) and allowance for bad or doubt-<br />
Financial Statements <strong>AG</strong><br />
ful accounts (KDM 3.887) as well additions to other reserves,<br />
especially provisions for:<br />
KDM<br />
Litigation risks and costs 2.566<br />
Risks from agreements to be fulfilled<br />
with real-estate funds and from<br />
project development activities 1.814<br />
Letting risks 1.297<br />
Mining damages 1.118<br />
Amounts written off long-term and short-term investments<br />
This section heading includes unscheduled depreciation in the<br />
amount of KDM 5.896 on the lower value of shares held in associated<br />
undertakings and participations. These are primarily due to<br />
property sales.<br />
Extraordinary income<br />
The extraordinary income includes KDM 33.630 from the amounts<br />
charged elsewhere for indemnification as well as earnings contributions<br />
pursuant to contractual stipulations with shareholders.<br />
Extraordinary expenditure<br />
The extraordinary expenditure results from indemnifications<br />
granted.<br />
59
Financial Statements <strong>AG</strong><br />
Other information<br />
Company Boards and Committees<br />
Board of Directors<br />
Kay Vogel, Düsseldorf<br />
--Chairman--<br />
Franz C. Ditterich, Cologne (w.e.f. 1 February 19<strong>98</strong>)<br />
Gabriele Ronge, Berlin (1 February 19<strong>98</strong> – 31 January 1999)<br />
Hans-Georg Thiebes, Eschweiler (w.e.f. 1 March 1999)<br />
60<br />
Supervisory Board<br />
Ulrich Hocker, Düsseldorf<br />
--Chairman--<br />
Dr. Ottokarl Finsterwalder, Vienna, Austria<br />
--Vice Chairman--<br />
Jean-Paul Dumortier, Paris, France (until 4 September 19<strong>98</strong>)<br />
Rolf P. Erb, Winterthur, Switzerland<br />
Klaus von der Heyde, Berlin<br />
Dr. Rainer C. Kahrmann, London, Great Britain<br />
Dr. Hanno Marquardt, Bonn (w.e.f. 30 July 19<strong>98</strong>)<br />
Dr. Hans F. Vögeli, Winterthur, Switzerland (until 31 March 19<strong>98</strong>)<br />
Dr. Peter von Woedtke, Meerbusch (w.e.f. 30 July 19<strong>98</strong>)<br />
Rolf Austel, Lohmar<br />
--Employee representative--<br />
Karola Hahn-Szep, Cologne (until 23 July 19<strong>98</strong>)<br />
--Employee representative--<br />
Karl-Heinz Notthoff, Niederkassel<br />
--Employee representative--<br />
Helena Rohde, Cologne (28 August 19<strong>98</strong> – 23 February 1999)<br />
--Employee representative--<br />
Gero Spellerberg, Cologne<br />
--Employee representative--
Information in accordance with Art. 285 No. 9 HGB<br />
The total remuneration of the Board of Directors for activities related<br />
to the parent company and subsidiaries amounts to KDM<br />
1.580 (31.12.97 KDM 1.096); the remuneration of the Supervisory<br />
Board amounts to KDM 54 (31.12.97 KDM 54). The expenses relating<br />
to former members of the Board of Directors and their surviving<br />
dependents amount to KDM 187 (31.12.97 KDM 186).<br />
The provision for pensions payable to former members of the<br />
Board of Directors and their surviving dependents amounts to<br />
KDM 761 (31.12.97 KDM 728).<br />
Employees<br />
The average number of staff employed during the business year<br />
amounted to 211 (31.12.97: 214), of whom 45 (31.12.97: 47)<br />
were non-salaried, and 166 (31.12.97: 167) salaried.<br />
Impact of tax regulations<br />
The financial statements were not significantly affected by the<br />
application of available German tax benefits.<br />
Notification in accordance with Art. 21 WpHG (Securities Trading<br />
Act), Notification in accordance with Art. 20 (5) AktG<br />
(Stock Companies Act)<br />
According to the notification dated 9 September 1996 and 20<br />
January 1997 and publication dated 4 March 1997 the interest<br />
held by Unifina <strong>Holding</strong> <strong>AG</strong>, Winterthur, Switzerland, in the voting<br />
rights of Concordia Bau und Boden <strong>AG</strong> is 26,42 %.<br />
According to notifications dated 22 and 29 April 1997, under Section<br />
21 (1) WpHG the share the of the voting rights of Concordia<br />
Bau und Boden <strong>AG</strong>, Oberhausen, held by the Caisse des Dépôts et<br />
Consignations had fallen below 25 % to 0 %.<br />
In the same notification, Sopaco Beteiligungs- und Verwaltungsgesellschaft<br />
mbH, Frankfurt am Main, advised that its share of the<br />
voting rights of Concordia Bau und Boden <strong>AG</strong> had risen above<br />
25 % to 26 %. Under Art. 22 (1) No. 2 WpHG (Securities Trading<br />
Act) these voting rights must be assigned to the Caisse des Dépôts<br />
et Consignations in full.<br />
The Bankgesellschaft Berlin Aktiengesellschaft, Berlin, advised on 14<br />
May 1999, that the share of the voting rights in the company held<br />
by the Berliner Bank <strong>AG</strong>, transferred in the scope of the merger of<br />
the Berliner Bank <strong>AG</strong>, Berlin, is 7,53 %. The Senatsverwaltung für<br />
Finanzen, Berlin, advised by notification dated 21 April 19<strong>98</strong>, that<br />
this share of the voting rights must likewise be assigned.<br />
Proposal on appropriation of results<br />
Financial Statements <strong>AG</strong><br />
The financial year is closed with a retained profit for the year of<br />
KDM 1.339. The accumulated deficit in the amount of KDM<br />
117.890 is carried forward.<br />
Oberhausen, 5 July 1999<br />
Audit opinion<br />
Concordia Bau und Boden Aktiengesellschaft<br />
Board of Directors<br />
Vogel Ditterich Thiebes<br />
“The accounting records and the financial statements which we<br />
have audited in accordance with professional standards, comply<br />
with the German legal regulations. The financial statements present<br />
a true and fair view of the net worth, financial position and<br />
earnings situation of the company, in compliance with the accounting<br />
principles generally accepted in Germany. The management<br />
report is consistent with the financial statements.”<br />
Cologne, 9 July 1999<br />
KPMG Deutsche Treuhand-Gesellschaft<br />
Aktiengesellschaft<br />
Wirtschaftsprüfungsgesellschaft<br />
Früh Döker<br />
Public Accountant Public Accountant<br />
61
Changes in Fixed Assets <strong>AG</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Changes in Fixed Assets (gross presentation)<br />
as at 31 December 19<strong>98</strong><br />
I. Intangible assets<br />
62<br />
Purchase and manufacturing cost<br />
Additions Changes Reclassi- Dis- as at<br />
01.01.19<strong>98</strong> current from fications posals 31.12.19<strong>98</strong><br />
fin. year accruals<br />
KDM KDM KDM KDM KDM KDM<br />
Rights 387 150 0 0 0 537<br />
II. Tangible fixed assets<br />
1. Land with residential and<br />
commercial buildings 29.701 1.022 34.850 -18.491 0 47.082<br />
2. Land without buildings 57 0 0 0 0 57<br />
3. Mineral rights<br />
4. Other plant, operational<br />
0 0 0 0 0 0<br />
and office equipment 1.029 483 19 0 214 1.317<br />
30.787 1.505 34.869 -18.491 214 48.456<br />
III. Financial assets<br />
1. Shares in<br />
group undertakings<br />
2. Loans to<br />
224.419 2.600 -85.708 1.038 0 142.349<br />
group undertakings 5.006 338 0 0 0 5.344<br />
3. Participations<br />
4. Loans to undertakings<br />
212.222 0 0 -1.038 12.587 1<strong>98</strong>.597<br />
in which participations are held 1.943 175 0 0 0 2.118<br />
5. Other loans 283 0 0 0 18 265<br />
443.873 3.113 -85.708 0 12.605 348.673<br />
475.047 4.768 -50.839 -18.491 12.819 397.666
Changes in Fixed Assets <strong>AG</strong><br />
Accumulated depreciation, amortization and write-downs Net book value<br />
Depreciation Changes Reclassi- Dis- as at as at as at<br />
01.01.19<strong>98</strong> in the year from fications posals 31.12.19<strong>98</strong> 31.12.19<strong>98</strong> 31.12.1997<br />
under review accruals<br />
KDM KDM KDM KDM KDM KDM KDM KDM<br />
200 127 0 0 0 327 210 187<br />
5.759 176 2.793 -5.531 0 3.197 43.885 23.942<br />
0 0 0 0 0 0 57 57<br />
0 0 0 0 0 0 0 0<br />
800 224 17 0 207 834 483 229<br />
6.559 400 2.810 -5.531 207 4.031 44.425 24.228<br />
137.458 5.946 -79.504 0 0 63.900 78.449 86.961<br />
0 0 0 0 0 0 5.344 5.006<br />
18.717 0 0 0 10.000 8.717 189.880 193.505<br />
0 0 0 0 0 0 2.118 1.943<br />
161 0 0 0 0 161 104 122<br />
156.336 5.946 -79.504 0 10.000 72.778 275.895 287.537<br />
163.095 6.473 -76.694 -5.531 10.207 77.136 320.530 311.952<br />
63
Balance sheet <strong>AG</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Balance sheet as at 31 December 19<strong>98</strong><br />
Assets 31.12.19<strong>98</strong> 31.12.1997<br />
KDM KDM<br />
Outstanding payments on subscribed capital<br />
A. Fixed assets<br />
0 3<br />
I. Intangible assets<br />
Rights<br />
II. Tangible fixed assets<br />
210 187<br />
1. Land with residential and commercial buildings 43.885 23.942<br />
2. Land without buildings 57 57<br />
3. Mineral rights 0 0<br />
4. Other plant, operational and office equipment 483 229<br />
III. Financial assets<br />
44.425 24.228<br />
1. Shares in group undertakings 78.449 86.961<br />
2. Loans to group undertakings 5.344 5.006<br />
3. Participations<br />
4. Loans to undertakings<br />
189.880 193.505<br />
in which participations are held 2.118 1.943<br />
5. Other loans 104 122<br />
275.895 287.537<br />
B. Current assets<br />
320.530 311.952<br />
I. Land intended for sale and other stock<br />
1. Land without buildings 20.990 16.338<br />
2. Land with uncompleted buildings 184.006 113.951<br />
3. Work in progress 124.834 193.286<br />
4. Advance payments made 2.065 4.109<br />
331.895 327.684<br />
5. Advance payments received -181.801 -262.919<br />
II. Debtors and other assets<br />
150.094 64.765<br />
1. Debtors relating to rents 1.596 1.264<br />
2. Debtors relating to sale of land 19.1<strong>98</strong> 14.778<br />
3. Amounts owed by group undertakings<br />
4. Amounts owed by undertakings<br />
196.107 255.459<br />
in which participations are held 354.594 253.710<br />
5. Other assets 82.405 66.917<br />
III. Marketable securities<br />
653.900 592.128<br />
Other marketable securities<br />
IV. Liquid funds<br />
15 522<br />
Cash in hand and at banks 268.245 260.592<br />
1.072.254 918.007<br />
C. Prepaid expenses and deferred charges 1.279 606<br />
64<br />
1.394.063 1.230.568
Balance sheet <strong>AG</strong><br />
Liabilities 31.12.19<strong>98</strong> 31.12.1997<br />
A. Capital and reserves<br />
KDM KDM<br />
I. Subscribed capital 180.172 180.000<br />
II. Profit participation rights capital 70.893 70.850<br />
III. Capital reserves 50.379 50.050<br />
IV. Revenue reserves<br />
1. Legal reserve 5.000 5.000<br />
2. Other revenue reserves 18.300 18.300<br />
V. Accumulated deficit<br />
- of which loss brought forward KDM -119.229<br />
(1997: KDM -119.229) -<br />
-117.890 -119.229<br />
206.854 204.971<br />
B. Untaxed special reserves<br />
Tax depreciation 1.394 1.569<br />
C. Provisions for liabilities and charges<br />
1. Provisions for pensions<br />
and similar obligations 7.781 7.604<br />
2. Tax provisions 11.287 23.172<br />
3. Provisions for mining damage 13.414 12.587<br />
4. Other provisions 77.392 144.626<br />
109.874 187.<strong>98</strong>9<br />
D. Liabilities<br />
1. Bank loans and overdrafts 5<strong>98</strong>.655 428.790<br />
2. Trade creditors<br />
3. Amounts owed to<br />
65.682 54.387<br />
group undertakings<br />
4. Amounts owed to undertakings<br />
308.973 256.276<br />
in which participations are held 67.630 54.435<br />
5. Other creditors<br />
- of which taxes KDM 1.217 (1997: KDM 753) -<br />
- of which social security<br />
KDM 371 (1997: KDM 373) -<br />
25.433 31.561<br />
1.066.373 825.449<br />
E. Deferred income 9.568 10.590<br />
1.394.063 1.230.568<br />
65
Profit and Loss Account <strong>AG</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Profit and loss account<br />
for the year ended 31 December 19<strong>98</strong><br />
19<strong>98</strong> 1997<br />
KDM KDM<br />
1. Revenues<br />
a) from property management 24.154 26.588<br />
b) from sale of property 48.624 141.154<br />
c) from other activities and services<br />
2. Decrease in stock of land intended for sale<br />
87.992 179.911<br />
with uncompleted buildings, and work in progress -88.080 -150.299<br />
3. Other operating income 146.921 77.659<br />
4. Cost of purchased goods and services<br />
a) cost of property management 33.167 27.670<br />
b) cost of sale of property 18.010 60.222<br />
c) cost of other activities and services 50.342 93.204<br />
5. Staff cost<br />
a) wages and salaries 15.844 14.045<br />
b) social security and pension costs<br />
- of which pension costs KDM 1.824 (1997: KDM 1.068)--<br />
6. Depreciation, amortization and write-downs<br />
4.348 3.549<br />
on tangible and intangible assets 527 348<br />
7. Other operating costs 122.208 122.139<br />
8. Income from participations<br />
- of which from group undertakings KDM 8.672 (1997: KDM 26.693)--<br />
8.716 26.717<br />
9. Income from long-term financial investments<br />
- of which from group undertakings KDM 378 (1997: KDM 348)--<br />
561 524<br />
10. Other interest and similar income<br />
- of which from group undertakings KDM 12.168 (1997: KDM 8.555)--<br />
11. Amounts written-off long-term and<br />
25.272 21.226<br />
short-term investments, and marketable securities 5.946 3.158<br />
12. Interest and similar charges<br />
- of which to group undertakings KDM 25.915 (1997: KDM 17.844)--<br />
53.285 37.720<br />
13. Charges relating to loss transfer under agreement 0 15.822<br />
14. Result from ordinary activities -49.517 -54.397<br />
15. Extraordinary income 73.630 53.808<br />
16. Extraordinary expenditure 33.630 0<br />
17. Extraordinary result 40.000 53.808<br />
18. Taxes on income -11.151 -601<br />
19. Other taxes 295 12<br />
20. Retained profit for the year (1997: Result of the year) 1.339 0<br />
21. Loss brought forward from previous year -119.229 -119.229<br />
22. Accumulated deficit -117.890 -119.229<br />
66
19<strong>98</strong> Consolidated Management Report<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Consolidated Management Report<br />
67
Consolidated Management Report<br />
Group Management Report 19<strong>98</strong><br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Development of the business<br />
In 19<strong>98</strong> the process of general economic recovery in Germany was<br />
driven mainly by the export economy and to a lesser extent by sectors<br />
of the domestic economy like consumption and investments.<br />
The improvement in general economic conditions barely touched<br />
the real estate sector. Nor did the historically low mortgage interest<br />
rates and direct and fiscal government aid do anything to generate<br />
an appreciable upswing here.<br />
In the 19<strong>98</strong> financial year the business activity and development<br />
of Concordia Bau und Boden <strong>AG</strong> and the group were decisively influenced<br />
by the general economic background conditions, the still<br />
difficult economic environment in the real estate business and the<br />
continuing restructuring of the company.<br />
The conditions specific to this business also affected the operations<br />
of Concordia Bau und Boden <strong>AG</strong> and the group which is also operationg<br />
nationwide in the sectors of project development, real estate<br />
management and real estate funds.<br />
In the Project Development division the priority in the financial year<br />
centred on the completion of the residential and commercial projects<br />
still under construction despite unsatisfactory sales expectations<br />
and on the continuation of planning and other measures for<br />
future project development. However, no new projects could be<br />
undertaken on the scale planned.<br />
In the real estate management division the goals set for the letting<br />
of space were achieved and in some extent even exceeded.<br />
Apartment rentals were satisfactory despite the fall in new lettings<br />
on the national average. As regards commercial property the difficulties<br />
consisted as before with over-supply in the new Federal<br />
Länder and the effects it is having on the level of rentals.<br />
In Berlin, where Concordia Bau und Boden <strong>AG</strong> is especially committed,<br />
major individual contracts were concluded in the commercial<br />
lettings sector in 19<strong>98</strong>. On the whole the situation with the new<br />
letting of commercial property in the 19<strong>98</strong> financial year was characterised<br />
by potential enquirers about commercial property hoping<br />
to profit from the low level of rentals before parliament moved location<br />
after mid-1999.<br />
In the real estate funds division there remain obligations from the<br />
guarantees given to the nine real estate funds set up by us. As in<br />
previous years, the funds companies were in a position to pay out<br />
dividends to the shareholders.<br />
The measures to restructure our companies continued to be implemented<br />
in the financial year and adapted to fit projects and<br />
68<br />
buildings. This gave rise to an additional financial requirement and<br />
a further charge on results. The restructuring measures also include<br />
the integration of associated companies through accrual to<br />
Concordia Bau und Boden <strong>AG</strong>.<br />
Through further placement of the bonds of the group company<br />
CCP Commercial City Properties N.V., Amsterdam, Netherlands,<br />
there was a further inflow of funds to cover liquidity requirements.<br />
Further contributions to liquid funds and the results were made by<br />
the shareholders during the financial year.<br />
During the financial year the group maintained, besides the registered<br />
offices of Concordia Bau und Boden <strong>AG</strong> in Oberhausen,<br />
branches in Cologne (central administration) and Berlin and offices<br />
in Dortmund, Hanover, Hamburg and Stuttgart.<br />
Assets, Finance and Revenue<br />
The completion and hand-over of commercial buildings and<br />
owner-occupied apartments influences directly the level of sales results<br />
connected with them. The sales results from housing management<br />
were at KDM 46.154 relatively constant by comparison with<br />
the previous year, whereas returns from the sale of land fell to KDM<br />
132.077 owing to the reduction of completions. Also other deliveries<br />
and services, which include the projects set up as general<br />
contractor, fell to KDM 74.317.<br />
For the first time since the beginning of the company restructuring<br />
an almost breakeven consolidated result (KDM -485) was shown<br />
for the 19<strong>98</strong> financial year. Also, again, the measures carried out<br />
principally in connection with further restructuring and reorganisation<br />
and compensated for by contributions made by the shareholders<br />
were reflected in the results from ordinary business for<br />
the group.<br />
The balance sheet total increased by 5 % on the previous year<br />
owing to the first consolidation of subsidiary companies. Fixed assets<br />
now contribute a share of 25 % and current assets a share of<br />
75 % of the increased balance sheet total.<br />
The share capital of Concordia Bau und Boden <strong>AG</strong> now amounts<br />
to KDM 180.172. The equity capital in the group shown on the balance<br />
sheet has increased by KDM 1.016 by comparison with the<br />
previous year and represents a share of 3 % of the substantially increased<br />
balance sheet total. The annual retained profit at Concordia<br />
Bau und Boden <strong>AG</strong> of KDM 1.339 has the effect that the balance<br />
sheet deficit is reduced to KDM 117.890. In total the equity<br />
capital has increased to KDM 42.612.<br />
As in the previous year, the increased liquid funds requirement in<br />
the project development division could not be financed by borrow-
ing to the required extent owing principally to the state of the economy<br />
in general, the financing charges and the rental situation for<br />
commercial buildings in the new Federal Länder.<br />
Fixed-interest bonds up to a total value of KDM 175.000 and convertible<br />
bonds up to a value of KDM 87.336 were facilitated<br />
through our group undertaking CCP Commercial City Properties<br />
N.V. After full placement of the convertible bonds liquid funds of<br />
up to KDM 117.150 are accruing to us from the further placement<br />
of the fixed-interest bonds and serve to consolidate the financing<br />
of the operating assets.<br />
Long-term loans for the property investments (portfolio properties)<br />
and short-term loans for the purchase of land and short-term interim<br />
loans for project development measures have all been<br />
secured by entry in the Land Register. The loans granted by the<br />
banks were maintained in the financial year.<br />
Development and Forecast<br />
Better economic background conditions than in the previous year<br />
are anticipated for the German real estate market in the current financial<br />
year. Low interest rates and an altogether improved economic<br />
climate with prospects of growth favour the acquisition of<br />
commercial property and even of residential property.<br />
Already a change of trend for the German real estate market is discernible.<br />
The cycle of real estate business in Germany was arrested<br />
by the boom following German reunification, so that the German<br />
real estate market continues to lag behind the upward trend<br />
in neighbouring European countries. On the office and commercial<br />
property lettings market there was a clear increase in demand<br />
for newly constructed space in our East German properties. The<br />
level of unoccupied space was reduced, although the rentals<br />
achieved did not come up to the level of those in the West.<br />
In the project development division the work on residential and<br />
commercial property under construction is continuing on schedule.<br />
In this division also in the future core sector of company operations<br />
the plans for realising projects in the Spittelmarkt quarter in the<br />
centre of Berlin are taking a definite shape. Further, the work on<br />
and planning for three construction projects in Munich and Berlin<br />
are being continued.<br />
Also the development of projects on non-group-owned sites is<br />
taking on a definite shape as a further profit-oriented field of business<br />
in the project development sector. In the current financial year we<br />
shall be carrying out a project in a major West German city for an<br />
outside investor.<br />
Consolidated Management Report<br />
The management of the company's own real estate and the management<br />
of the closed-end real estate funds is being further expanded<br />
by the acceptance of outside orders.<br />
The range of services related to real estate was expanded by the<br />
creation of the VKK Versicherungs-Kontor Köln GmbH.<br />
Also, in the EDP sector we are expanding capacity in order to meet<br />
the increased requirements of tenant management, apartment<br />
management and services related to real estate.<br />
In order to be able to put the company goals into effect successfully,<br />
support will also be required on the part of the shareholders<br />
to supplement the improved general economic environmental conditions<br />
in the real estate management sector. In the current financial<br />
year the profit contributions of the various business sectors are<br />
still being influenced by existing charges arising from the restructuring.<br />
As part of the optimisation strategy in the various company<br />
divisions a further reduction in the level of employees will be<br />
unavoidable.<br />
We nevertheless consider the group's prospects in 1999 to be favourable<br />
and view the future with confidence. Through the capital<br />
increase to be approved by the general meeting of shareholders<br />
of Concordia Bau und Boden <strong>AG</strong>, a further capital provision and<br />
further restructuring measures borne by the shareholders and the<br />
re-oriented group strategy we shall further enhance the profit potential<br />
available in the company divisions and also gain new areas<br />
of business in the real estate services sector.<br />
Despite the restructuring measures already implemented Concordia<br />
Bau und Boden <strong>AG</strong> and the group undertakings will continue<br />
to be dependent on developments in the German real estate market,<br />
particularly in Berlin, and on the options for financing and the<br />
adequate provision of liquid funds.<br />
An information system is being further developed for the management<br />
to enable risks from the diversified business operations and<br />
developments which could jeopardise the continuing existence of<br />
the undertakings to be recognised and better assessed in time. To<br />
ensure the functionability of the EDP systems the necessary measures<br />
have been taken to prepare the EDP systems for the changeover<br />
to the new millennium and the Euro.<br />
Again an improved result on the previous year is anticipated for the<br />
1999 financial year.<br />
69
Consolidated Management Report<br />
Personnel<br />
339 salaried and non-salaried employees were employed at<br />
Concordia Bau und Boden <strong>AG</strong> and the group undertakings in the<br />
course of the financial year, as against 354 the previous year.<br />
The restructuring measures to maintain the group undertakings<br />
and increase their competitiveness could not be implemented without<br />
negative effects for the personnel structure.<br />
The Board of Directors thanks all the employees for their willingness<br />
and commitment to further the progress of the company at a<br />
difficult time. Our thanks are also due to the employee representatives<br />
for their work during the financial year.<br />
Relations with associated companies<br />
According to notifications dated 9 September 1996 and 20 January<br />
1997 and publication dated 4 March 1997 the share of the voting<br />
rights of Concordia Bau und Boden <strong>AG</strong> held by Unifina <strong>Holding</strong><br />
<strong>AG</strong>, Winterthur, Switzerland, is 26,42 %.<br />
According to notifications dated 22 and 29 April 1997 the share of<br />
the voting rights of Concordia Bau und Boden <strong>AG</strong>, Oberhausen,<br />
held by the Caisse des Dépôts et Consignations had fallen below<br />
25 % to 0 %. In the same notification Sopaco Beteiligungs- und<br />
Verwaltungsgesellschaft mbH, Frankfurt am Main, advised that its<br />
share of the voting rights of Concordia Bau und Boden <strong>AG</strong> had<br />
risen above 25 % to 26 %. Under Art. 22 (1) No. 2 WpHG these<br />
voting rights must be assigned in full to the Caisse des Dépôts et<br />
Consignations.<br />
Bankgesellschaft Berlin Aktiengesellschaft, Berlin, as parent company,<br />
advised on 14 May 1999 that the share of the voting rights<br />
in our company transferred under the terms of the fusion with Berliner<br />
Bank <strong>AG</strong>, Berlin, is 7,53 %. The Senatsverwaltung für Finanzen<br />
made notification in a letter dated 21 April 19<strong>98</strong> that these<br />
voting rights must be assigned to it.<br />
Oberhausen, 8 July 1999<br />
70<br />
Concordia Bau und Boden Aktiengesellschaft<br />
Board of Directors<br />
Vogel Ditterich Thiebes
19<strong>98</strong> Consolidated Financial Statements<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Consolidated Financial Statements<br />
Notes to the<br />
Consolidated Financial Statements 72<br />
Changes in Fixed Assets<br />
Group 80<br />
Investment <strong>Holding</strong>s<br />
Group/<strong>AG</strong> 82<br />
Consolidated<br />
Balance Sheet 86<br />
Consolidated<br />
Profit and Loss Account 88<br />
71
Consolidated Financial Statements<br />
19<strong>98</strong> Consolidated Financial Statements<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
General information<br />
On the basis of the circumstances prevailing at the balance sheet<br />
date, Concordia Bau und Boden <strong>AG</strong> is regarded pursuant to Art.<br />
290 HGB as the parent company of a group with its registered office<br />
in Germany. It is accordingly required to draw up group financial<br />
statements and a group management report as at the end of<br />
the financial year.<br />
At the same time Concordia Bau und Boden <strong>AG</strong> is an associated<br />
company of Unifina <strong>Holding</strong> <strong>AG</strong>, Winterthur, Switzerland, the<br />
Caisse des Dépôts et Consignations, Paris, France, through its 100 %<br />
subsidiary company Sopaco Beteiligungs- und Verwaltungsgesellschaft<br />
mbH, Frankfurt am Main, and of Bankgesellschaft Berlin <strong>AG</strong>,<br />
Berlin.<br />
Consolidated undertakings<br />
In addition to Concordia Bau und Boden <strong>AG</strong>, 17 group undertakings<br />
with registered offices in Germany and 8 subsidiaries with registered<br />
offices abroad, in which Concordia Bau und Boden <strong>AG</strong> directly<br />
or indirectly holds a majority of the voting rights or over<br />
which Concordia Bau und Boden <strong>AG</strong> exercises uniform control, are<br />
included in the consolidated financial statements. The number of<br />
consolidated undertakings was increased by 2 domestic undertakings<br />
in 19<strong>98</strong>. In addition 11 subsidiaries have been subsumed<br />
by Concordia Bau und Boden <strong>AG</strong> or by other subsidiaries.<br />
The companies included and other primary holdings are shown in<br />
the schedule of shareholdings.<br />
Not consolidated under Art. 296, (2) HGB (German Commercial<br />
Code) were a further 6 domestic and 4 foreign subsidiary companies<br />
which are of lesser importance for the statement of the Group’s<br />
net worth and financial position.<br />
In accordance with the requirements for associated companies<br />
16 domestic holdings and one foreign holding were included.<br />
Principles of consolidation<br />
The financial statements of the undertakings included in the consolidated<br />
financial statements are drawn up in accordance with the<br />
accounting and valuation principles applicable to Concordia Bau<br />
und Boden <strong>AG</strong>.<br />
The capital consolidation is carried out in accordance with the<br />
book value method, by offsetting the purchase price against the<br />
amount which the interest held represents in the equity of the subsidiary<br />
undertaking at the date at which the subsidiary is consolidated<br />
for the first time. To the extent possible, differences arising<br />
72<br />
as a result are allocated to the assets affected, and amortized together<br />
with these assets. Any remaining debit differences are<br />
shown separately as goodwill on capital consolidation and amortised<br />
over 15 years but not set against net income. A credit difference<br />
arising upon the first inclusion of a subsidiary undertaking in<br />
the amount of KDM 2.671 is allocated to the revenue reserves due<br />
to its balance character.<br />
The valuation of associated undertakings in accordance with the<br />
equity method follows the same principles.<br />
On account of the uniform valuation within the group, adjustments<br />
are made in accordance with Art. 312 (5) sentence 1 HGB to comply<br />
with the valuation methods applied by the group. These relate<br />
in particular to the reversal of special depreciation recorded in the<br />
individual sets of financial statements in accordance with Art. 4 of<br />
the Development Areas Act and, in the case of three undertakings,<br />
to the capitalization of fund fees, which are written off proportionately<br />
over the following years.<br />
The results of Concordia Bau und Boden <strong>AG</strong> are recorded in the<br />
balance sheet of the <strong>AG</strong> and the consolidated balance sheet in the<br />
same amount. For this purpose, an amount representing the consolidation<br />
adjustments affecting income and the results of the subsidiaries,<br />
and the excess amounts are shown as a negative result<br />
brought forward.<br />
Intercompany loans, debtors, creditors, revenues, expenses and income<br />
are offset. Intercompany profits and losses between undertakings<br />
included in the consolidated financial statements by the full<br />
consolidation method are eliminated.<br />
Foreign currency conversion<br />
The assets and liabilities of foreign undertakings included in the<br />
consolidated financial statements, and the results for the year<br />
and the depreciation charge as recorded in the profit and loss accounts,<br />
are converted at the mid-market rate on the balance<br />
sheet date. Expenses and revenues are converted applying the<br />
average rate for the year. The difference on conversion resulting<br />
from using the mid-market rate at the balance sheet date and<br />
the average rate is shown under other operating income or other<br />
operating charges.<br />
Comments on the Financial Situation<br />
A stabilisation was discernible in the still difficult real estate market<br />
in the 19<strong>98</strong> financial year. The over-supply of commercial property<br />
in the new Federal Länder continued to affect real estate purchase<br />
prices and the level of property rentals. These general background<br />
conditions also influenced the financial situation of Concordia Bau
und Boden <strong>AG</strong> and the group. Taking into account property and<br />
project-related adjustments, the measures to reorganise and restructure<br />
the group were continued. This entailed a charge on results<br />
and a further finance requirement.<br />
In the financial year a patronage agreement was concluded between<br />
the shareholders and Concordia Bau und Boden <strong>AG</strong>, which,<br />
if called upon, provides for restitution. Our group was supported<br />
during the financial year by further measures taken by shareholders<br />
regarding results.<br />
The effects of the economic situation, the measures taken to reorganise<br />
the company and the contributions made by the shareholders<br />
with regard to results and capital are reflected in the balance<br />
sheet and the expenditure and revenue items, particularly the<br />
entry of claims on shareholders, valuation of stocks, the creation<br />
and retransfer of provisions and the extraordinary result and are explained<br />
in greater detail in the following paragraphs.<br />
Accounting and Valuation Principles<br />
The balance sheet and the profit and loss account are classified in<br />
accordance with the provisions of 6 March 1<strong>98</strong>7, prescribed for<br />
residential property companies.<br />
The profit and loss account was drawn up in accordance with the<br />
total-cost method.<br />
The valuations have been made in accordance with the going concern<br />
concept. The basis for this is the forecast of the continuation<br />
and the degree of realization of the restructuring plan at the<br />
balance sheet date, taking into consideration the changes in guidelines<br />
and measures agreed by the shareholders under the modified<br />
restructuring and reorganization plan.<br />
Intangible assets are valued as a matter of principle at purchase or<br />
manufacturing cost, less scheduled straight-line amortization, taking<br />
into account value guarantees. Unscheduled write-downs are<br />
recorded in the consolidated financial statements in the event of<br />
an expected permanent diminution in value.<br />
Scheduled depreciation of buildings is recorded straight-line and by<br />
the declining balance method on the basis of the tax regulations<br />
under Art. 7 EStG [German Income Tax Act].<br />
Special depreciation for German tax purposes is not recorded in the<br />
consolidated financial statements against assets subject to wear<br />
and tear.<br />
Consolidated Financial Statements<br />
In the case of moveable assets, depreciation is recorded straightline<br />
and by the declining balance method within the framework of<br />
the German tax regulations. In this connection, a full year's depreciation<br />
is applied to additions during the first half of the year, and<br />
half the annual charge to additions during the second half of the<br />
year.<br />
Minor value assets are written off completely in the year acquired,<br />
and recorded as a disposal.<br />
Investments are recorded at cost, current book value and at the lower<br />
values attributable to them; interest-free loans are discounted<br />
as a matter of principle to their present value.<br />
Land intended for sale, buildings and other portfolio property are<br />
recorded as a matter of principle at purchase or manufacturing cost.<br />
Manufacturing cost includes, in addition to the directly attributable<br />
costs, a share of the administrative overheads, interest on borrowings<br />
and other financial costs capable of being capitalized for<br />
the period of construction. The principle of lower of cost or net<br />
realizable value is observed.<br />
The economic situation on the market and the amended planning<br />
for individual projects made special depreciation necessary for indivdual<br />
properties, where not value-guaranteed.<br />
Debtors and other assets are shown at face value. Where not<br />
value-guaranteed, appropriate provisions are recorded to cover<br />
foreseeable risks.<br />
Marketable securities are shown at the lower of purchase cost or<br />
stock market prices.<br />
Participating rights capital was valued at the issue price, including<br />
proportionate premium.<br />
The capital reserve comprises amounts contributed in connection<br />
with the increase in the equity for cash and by conversion of loans<br />
effected the previous year and realised on the issue through a subsidiary<br />
company of bonds with option rights for conversion into<br />
shares in Concordia Bau und Boden <strong>AG</strong> and the exchange of convertible<br />
partial debentures of a subsidiary company for shares in<br />
Concordia Bau und Boden <strong>AG</strong>.<br />
Provisions for pensions and similar obligations are calculated at actuarial<br />
present value, applying an interest rate of 6 %. The company<br />
has by virtue of the statement by the Main Committee of the<br />
Institute of German Certified Public Accountants on the use of the<br />
guide tables for calculation of pension provisions made use of the<br />
right to distribute the allocation requirement in stages over a period<br />
of four years on the basis of the modified guide tables.<br />
73
Consolidated Financial Statements<br />
The remaining provisions for liabilities and charges take into account<br />
contingent losses, as well as all foreseeable risks under contracts<br />
which have still to be fulfilled, and uncertain obligations.<br />
Creditors are recorded at the repayment amounts.<br />
Assets and liabilities in foreign currencies are valued as a matter of<br />
principle at the exchange rate as of the date of the business transaction<br />
or at the closing rate, observing the principle of lower of cost<br />
or market value.<br />
Notes and Explanations to the Consolidated Balance Sheet<br />
Fixed Assets<br />
The breakdown and changes of the fixed assets are shown in the<br />
fixed asset movements schedule, which forms part of the notes to<br />
the financial statements.<br />
The schedule of significant investments held by Concordia Bau und<br />
Boden <strong>AG</strong> as of 31 December 19<strong>98</strong> is presented separately, and<br />
will be filed at the Local Court in Oberhausen.<br />
Land intended for sale and other stocks<br />
The stocks primarily comprise land intended for sale for project development<br />
purposes and services rendered under general contractor<br />
contracts. The whole of any advance payments received are deducted<br />
from the stocks. Theadvance payments received on the sale of<br />
land property with uncompleted buildings are completely secured by<br />
cash deposits.<br />
Debtors and other assets<br />
The debtors and other assets totalling KDM 602.404 have a remaining<br />
term up to one year. The amounts owed by undertakings<br />
in which participations are held amounting to KDM 382.659 are<br />
due within one year.<br />
Liquid funds<br />
In order to secure advance payments received and bank loans,<br />
liquid funds of KDM 238.548 are held on deposit.<br />
Deferred items<br />
The deferred items relate to a disagio in in the amount of KDM<br />
1.221 from a loan guaranty relating to associated companies.<br />
74<br />
Capital and reserves<br />
Subscribed capital<br />
The company’s share capital has been increased in the year under<br />
review as follows:<br />
KDM<br />
As at 1 January 19<strong>98</strong> 180.000<br />
Increase of capital by exchange of<br />
convertible bonds into shares 172<br />
As at 31 December 19<strong>98</strong> 180.172<br />
The share capital was converted into no par value shares pursuant<br />
to a resolution of the General Meeting of 23 July 19<strong>98</strong>. The share<br />
capital is thus divided into 36.034.418 individual share certificates.<br />
The shares are bearer shares. 34.418 ordinary shares with a calculated<br />
value of DM 172.090 have been created by conversion of<br />
convertible bonds in the framework of the capital increase‚.<br />
As at 31 December 19<strong>98</strong> the capital authorized for issuance up to<br />
15 July 2002 amounts to KDM 45.000 and the capital authorized<br />
for issuance up to 23 July 2003 amounts to KDM 45.000. The capital<br />
authorized for issuance therefore totals KDM 90.000. The<br />
authorized but unissued capital amounts to KDM 90.000; a portion<br />
of this capital is restricted to drawing by bearers of convertible<br />
debentures issued by the company, a portion of this capital,<br />
amounting to KDM 30.000 is available up to 15 July 2002 and a<br />
further portion up to 15 July 2003.<br />
Participating rights capital<br />
140.000 participating right certificates with an original nominal<br />
value of KDM 140.000 were issued, and recorded under the capital<br />
and reserves in accordance with the issuance terms, since the<br />
criteria of subordinate ranking, long-term nature and participation<br />
in losses are fulfilled. They were issued at an issue price of<br />
DM <strong>98</strong>9,80 per nominal amount of DM 1.000,00. The term of<br />
the participating certificates will expire at the latest on 31 December<br />
2011. In the year under review participating right certificates<br />
with a nominal value of KDM 77.000 were exchanged into share<br />
capital as an increase in capital other than for cash.<br />
An amount of KDM 8.450 of the 1995/2000 bond with warrants<br />
issued by CCP Commercial City Properties N.V. and passed through<br />
as a loan to Concordia Bau und Boden <strong>AG</strong> after legal amendments,<br />
was recorded additionally as participating rights capital.
Capital reserve<br />
The company’s capital reserve developed in the year under review<br />
as follows:<br />
KDM<br />
As at 1 January 19<strong>98</strong> 47.050<br />
Addition from<br />
Premium for the exchange of<br />
convertible bonds into shares 329<br />
As at 31 December 19<strong>98</strong> 47.379<br />
The capital reserves include KDM 23.000, paid in by way of premium<br />
in connection with the increase of the share capital, as well<br />
as by way of further payment by the shareholders in the amount<br />
of KDM 24.050 as well as premium in connection with the exchange<br />
of convertible bonds into shares.<br />
Revenue reserves<br />
The legal reserves were unchanged during the year under review.<br />
Deficit brought forward<br />
In order to show the same result in the balance sheet of the <strong>AG</strong><br />
and the consolidated balance sheet, an amount representing the<br />
consolidation adjustments affecting income and the results of the<br />
subsidiaries, to the extent that these have not been received by the<br />
<strong>AG</strong>, is offset against the group revenue reserves and shown as a<br />
deficit brought forward.<br />
Provisions for liabilities and charges<br />
Consolidated Financial Statements<br />
The tax provisions total KDM 11.889 after retransfer of a partial<br />
amount for deferred taxes and the addition for other tax risks<br />
(KDM 4.000).<br />
The provisions for mining damage set up for damage to the environment<br />
from earlier mining activities primarily relate to provisions<br />
for permanent damage, and for preservation and supplementary<br />
measures carried out by the Emscher Co-operative Association.<br />
The other provisions for liabilities and charges have primarily been<br />
constituted for:<br />
31.12.19<strong>98</strong> 31.12.1997<br />
KDM KDM<br />
Unbilled construction work 44.869 63.269<br />
Outstanding charges 13.147 25.151<br />
Likely transfer of losses from<br />
associated undertakings 18.235 17.614<br />
Litigation risks and costs 10.328 16.156<br />
Warranty obligations 5.431 7.297<br />
Letting risks 4.034 5.678<br />
Risks under contracts to be fulfilles<br />
with real estate funds and relating to<br />
project development measures 585 3.545<br />
75
Consolidated Financial Statements<br />
Creditors<br />
The repayment schedule of creditors is as follows:<br />
19<strong>98</strong> 1997<br />
total repayment schedule total repayment schedule<br />
less than more than less than more than<br />
1 year 5 years 1 year 5 years<br />
KDM KDM KDM KDM KDM KDM<br />
Loans 286.235 0 0 199.050 0 35.000<br />
Bank loans<br />
and overdrafts 854.625 691.808 1 159.197 836.353 673.267 106.194<br />
Amounts owed to<br />
other lenders 11.094 11.094 0 14.425 14.425 0<br />
Tade debtors 76.066 76.066 0 65.329 65.329 0<br />
Amounts owed to<br />
group undertakings 351 351 0 132 132 0<br />
Amounts owed to<br />
associated undertakings 36.904 36.904 0 29.670 29.670 0<br />
Amounts owed to<br />
undertakings in which<br />
participations are held 39.822 39.822 0 33.640 33.640 0<br />
Other creditors 60.580 60.580 0 56.889 56.889 0<br />
- of which taxes<br />
KDM 1.264 (1997: KDM 1.604) -<br />
- of which social security<br />
KDM 456 (1997: KDM 430) -<br />
1.365.677 916.625 159.197 1.235.488 873.352 141.194<br />
1) The bank loans and overdafts falling due within one year mainly relate to purchases of land and intermediate construction loans for<br />
project development measures<br />
The bank loans and overdrafts are almost fully secured by land charges and other securities such as cash deposits, assignments and<br />
guarantees.<br />
Contingent liabilities<br />
Guarantees<br />
Guarantees have been granted to banks for loans in the amount<br />
of KDM 42.433.<br />
Liabilities resulting from guarantee agreements<br />
An irrevocable and unconditional guarantee declaration has been<br />
given by the company to CCP Commercial City Properties N.V.,<br />
Amsterdam, Netherlands, in connection with the following<br />
convertible bonds issued by the latter:<br />
KDM<br />
Bonds with warrants 1995/2000 150.000<br />
Bond 1997/2002 (part of) 57.850<br />
Convertible bond 1997/2004 86.835<br />
76<br />
Legal joint and several liability as co-guarantor exists in favour of<br />
banks for loans of associated undertakings and undertakings in<br />
which participations are held – structured as limited partnerships<br />
(KG) or private corporations (GbR) – in the amount of<br />
KDM 1.149.460. The related contractual joint and several liability<br />
as co-guarantor amounts to KDM 4.481.<br />
The company has contractually guaranteed employment and investments<br />
in connection with the sale of interests in three group<br />
undertakings. The guarantee obligations incurred thereby amount<br />
original to KDM 134.006.<br />
Concordia Bau und Boden <strong>AG</strong> has also issued comfort letters for<br />
various undertakings in which participations are held.
Other financial commitments<br />
The financial commitments under long-term rental, leasing and service<br />
agreements are payable as follows:<br />
1999 2000 2001<br />
KDM KDM KDM<br />
42.402 39.216 34.577<br />
The long-term rental agreements include rental agreements with<br />
associated undertakings (1999: KDM 26.851), for which there are<br />
corresponding rental revenues.<br />
The potential obligations relating to dormant claims in connection<br />
with the obligation to provide coal free of charge to employees of<br />
former mining operations amount to KDM 1.007 at 31 December<br />
19<strong>98</strong> (1997: KDM 1.020).<br />
The obligations for project development purposes within the<br />
framework of general contractors' services and investments (capital<br />
commitments) amount to KDM 133.725 (1997: KDM<br />
150.504).<br />
Further, there are contingent liabilities arising out of guarantees to<br />
undertakings in which participations are held, and in favour of<br />
banks.<br />
Notes and Explanatory Comments<br />
to the Profit and Loss Account<br />
Revenues<br />
The breakdown of revenues by types of activities is presented by<br />
the section headings in the profit and loss account.<br />
Other operating income<br />
The other operating income mainly comprises proceeds from the<br />
release of provisions for liabilities and charges pursuant to exemption<br />
(KDM 20.709), from amounts charged elsewhere (KDM<br />
61.407), assumption of accrual losses (KDM 27.478) and liabilities<br />
(KDM 11.359).<br />
Depreciations of intangible assets included in fixed assets,<br />
and of fixed assets<br />
The depreciation of intangible assets included in fixed assets includes<br />
an amount of KDM 5.474 of unscheduled depreciation.<br />
Other operating charges<br />
Consolidated Financial Statements<br />
Other operating charges primarily comprise allocations to other<br />
provisions for liabilities and charges (KDM 36.264), administrative<br />
expenses (KDM 23.774), fund costs (KDM 4.116), cost of sales<br />
(5.754) and allowance for bad or doubtful accounts (KDM 4.447)<br />
as well additions to other reserves, especially provisions for:<br />
KDM<br />
Litigation risks and costs 2.760<br />
Risks from agreements to be fulfilled<br />
with real-estate funds and from<br />
project development activities 1.994<br />
Letting risks 1.297<br />
Mining damages 1.118<br />
Charges relating to associated undertakings<br />
Charges relating to associated undertakings include charges in the<br />
proportional capital and reserves of the undertakings included<br />
under the equity method, taking into consideration subsequent adjustments<br />
of valuations.<br />
Extraordinary income<br />
The extraordinary income includes KDM 33.630 from the amounts<br />
charged elsewhere for indemnification as well as earnings contributions<br />
pursuant to contractual stipulations with shareholders.<br />
Extraordinary expenditure<br />
The extraordinary expenditure results from indemnifications<br />
granted.<br />
77
Consolidated Financial Statements<br />
Other information<br />
Company Boards and Committees<br />
Board of Directors<br />
Kay Vogel, Düsseldorf<br />
--Chairman--<br />
Franz C. Ditterich, Cologne (w.e.f. 1 February 19<strong>98</strong>)<br />
Gabriele Ronge, Berlin (1 February 19<strong>98</strong> – 31 January 1999)<br />
Hans-Georg Thiebes, Eschweiler (w.e.f. 1 March 1999)<br />
78<br />
Supervisory Board<br />
Ulrich Hocker, Düsseldorf<br />
--Chairman--<br />
Dr. Ottokarl Finsterwalder, Vienna, Austria<br />
--Vice Chairman--<br />
Jean-Paul Dumortier, Paris, France (until 4 September 19<strong>98</strong>)<br />
Rolf P. Erb, Winterthur, Switzerland<br />
Klaus von der Heyde, Berlin<br />
Dr. Rainer C. Kahrmann, London, Great Britain<br />
Dr. Hanno Marquardt, Bonn (w.e.f. 30 July 19<strong>98</strong>)<br />
Dr. Hans F. Vögeli, Winterthur, Switzerland (until 31 March 19<strong>98</strong>)<br />
Dr. Peter von Woedtke, Meerbusch (w.e.f. 30 July 19<strong>98</strong>)<br />
Rolf Austel, Lohmar<br />
--Employee representative--<br />
Karola Hahn-Szep, Cologne (until 23 July 19<strong>98</strong>)<br />
--Employee representative--<br />
Karl-Heinz Notthoff, Niederkassel<br />
--Employee representative--<br />
Helena Rohde, Cologne (28 August 19<strong>98</strong> – 23 February 1999)<br />
--Employee representative--<br />
Gero Spellerberg, Cologne<br />
--Employee representative--
Information in accordance with Art. 314 No. 6 HGB<br />
The total remuneration of the Board of Directors for activities related<br />
to the parent company and subsidiaries amounts to KDM<br />
1.580 (31.12.97 KDM 1.096); the remuneration of the Supervisory<br />
Board amounts to KDM 54 (31.12.97 KDM 54). The expenses relating<br />
to former members of the Board of Directors and their surviving<br />
dependents amount to KDM 187 (31.12.97 KDM 186).<br />
The provision for pensions payable to former members of the<br />
Board of Directors and their surviving dependents amounts to<br />
KDM 761 (31.12.97 KDM 728).<br />
Employees<br />
The average number of staff employed during the business year<br />
amounted to 339 (31.12.97: 354), of whom 138 (31.12.97: 154)<br />
were non-salaried, and 201 (31.12.97: 200) salaried.<br />
Impact of tax regulations<br />
The financial statements were not significantly affected by the<br />
application of available German tax benefits.<br />
Notification in accordance with Art. 21 WpHG (Securities Trading<br />
Act), Notification in accordance with Art. 20 (5) AktG<br />
(Stock Companies Act)<br />
According to the notification dated 9 September 1996 and 20<br />
January 1997 and publication dated 4 March 1997 the interest<br />
held by Unifina <strong>Holding</strong> <strong>AG</strong>, Winterthur, Switzerland, in the voting<br />
rights of Concordia Bau und Boden <strong>AG</strong> is 26,42 %.<br />
According to notifications dated 22 and 29 April 1997, under Section<br />
21 (1) WpHG the share of the voting rights of Concordia Bau<br />
und Boden <strong>AG</strong>, Oberhausen, held by the Caisse des Dépôts et Consignations<br />
had fallen below 25 % to 0 %.<br />
In the same notification, Sopaco Beteiligungs- und Verwaltungsgesellschaft<br />
mbH, Frankfurt am Main, advised that its share of the<br />
voting rights of Concordia Bau und Boden <strong>AG</strong> had risen above<br />
25 % to 26 %. Under Art. 22 (1) No. 2 WpHG (Securities Trading<br />
Act) these voting rights must be assigned to the Caisse des Dépôts<br />
et Consignations in full.<br />
Consolidated Financial Statements<br />
The Bankgesellschaft Berlin Aktiengesellschaft, Berlin, advised on 14<br />
May 1999, that the share of the voting rights in the company held<br />
by the Berliner Bank <strong>AG</strong>, transferred in the scope of the merger of<br />
the Berliner Bank <strong>AG</strong>, Berlin, is 7,53 %. The Senatsverwaltung für<br />
Finanzen, Berlin, advised by notification dated 21 April 19<strong>98</strong>, that<br />
this share of the voting rights must likewise be assigned.<br />
Cologne, 8 July 1999<br />
Audit opinion<br />
Concordia Bau und Boden Aktiengesellschaft<br />
Board of Directors<br />
Vogel Ditterich Thiebes<br />
“The consolidated financial statements which we have audited in<br />
accordance with professional standards, comply with the German<br />
legal regulations. The consolidated financial statements present a<br />
true and fair view of the net worth, financial position and earnings<br />
situation of the company, in compliance with the accounting principles<br />
generally accepted in Germany. The management report is<br />
consistent with the financial statements.”<br />
Cologne, 9 July 1999<br />
KPMG Deutsche Treuhand-Gesellschaft<br />
Aktiengesellschaft<br />
Wirtschaftsprüfungsgesellschaft<br />
Früh Döker<br />
Public Accountant Public Accountant<br />
79
Changes in Fixed Assets Group<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Changes in Fixed Assets (gross presentation)<br />
of the Group as of 31 December 19<strong>98</strong><br />
80<br />
Purchase or manufacturing cost<br />
Changes<br />
Influence consolidated Reclassi- as at<br />
01.01.19<strong>98</strong> currency undertakings Additions fications Disposals 31.12.19<strong>98</strong><br />
KDM KDM KDM KDM KDM KDM KDM<br />
I. Intangible assets<br />
1. Rights 409 0 0 150 0 0 559<br />
2. Goodwill 24.474 -497 0 0 0 9.240 14.737<br />
24.883 -497 0 150 0 9.240 15.296<br />
II. Intangible fixed assets<br />
1. Land and leasehold rights with<br />
commercial and<br />
other buildings 248.665 0 23.532 2.715 -18.491 474 255.947<br />
2. Land without buildings 57 0 0 0 0 0 57<br />
3. Mineral rights<br />
4. Other plant, operational<br />
0 0 0 0 0 0 0<br />
and office equipment 2.947 0 3 565 0 232 3.283<br />
5. Construction in progress 0 0 922 0 0 0 922<br />
251.669 0 24.457 3.280 -18.491 706 260.209<br />
III. Financial assets<br />
1. Shares in<br />
group undertakings<br />
2. Shares in<br />
8.445 0 0 0 0 0 8.445<br />
associated undertakings<br />
3. Loans to<br />
265.959 0 0 0 -4.279 12.586 249.094<br />
associated undertakings 1.943 0 0 175 0 0 2.118<br />
4. Participations 5.801 0 0 0 3.240 0 9.041<br />
5. Other loans 2.312 -134 0 0 0 18 2.160<br />
284.460 -134 0 175 -1.039 12.604 270.858<br />
561.012 -631 24.457 3.605 -19.530 22.550 546.363
Changes in Fixed Assets Group<br />
Accumulated depreciation, amortization and write-downs Net book value<br />
Change<br />
Influence consolidated Depreciation Dis- Reclassi- as at as at as at<br />
01.01.19<strong>98</strong> currency undertakings in year under review posals Additions fications 31.12.19<strong>98</strong> 31.12.19<strong>98</strong> 31.12.1997<br />
KDM KDM KDM KDM KDM KDM KDM KDM KDM KDM<br />
217 0 0 132 0 0 0 349 210 192<br />
23.052 -497 0 175 9.230 0 0 13.500 1.237 1.422<br />
23.269 -497 0 307 9.230 0 0 13.849 1.447 1.614<br />
40.494 0 705 10.829 164 0 -5.531 46.333 209.614 208.171<br />
0 0 0 0 0 0 0 0 57 57<br />
0 0 0 0 0 0 0 0 0 0<br />
1.548 0 2 399 225 0 0 1.724 1.559 1.399<br />
0 0 0 0 0 0 0 0 922 0<br />
42.042 0 707 11.228 389 0 -5.531 48.057 212.152 209.627<br />
8.231 0 0 0 0 0 0 8.231 214 214<br />
85.070 0 0 9.097 12.586 442 -1.038 80.101 168.993 180.889<br />
0 0 0 0 0 0 0 0 2.118 1.943<br />
4.451 0 0 0 0 0 0 4.451 4.590 1.350<br />
2.190 -135 0 0 0 0 0 2.055 105 122<br />
99.942 -135 0 9.097 12.586 442 -1.038 94.838 176.020 184.518<br />
165.253 -632 707 20.632 22.205 442 -6.569 156.744 389.619 395.759<br />
81
Investment <strong>Holding</strong>s Group<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Schedule of significant investments of the <strong>AG</strong> and the Group as at 31 December 19<strong>98</strong><br />
Undertakings Registered <strong>Holding</strong> in Equity Result for the<br />
office capital KDM latest financial year<br />
% /currency in th. KDM/currency in th.<br />
Fully consolidated undertakings (Art. 313 (2) No. 1 HGB)<br />
Germany<br />
82<br />
Aktiengesellschaft für Industriebeteiligungen Cologne 99,00 -5.801 12.034<br />
Aktiengesellschaft für Industriebeteiligungen<br />
& Co. Objekt Stuttgart-Zentrum KG<br />
Stuttgart 100,00 -44.770 -11.462<br />
Berliner Zigarettenfabrik GmbH Berlin 100,00 16.302 -537<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
Gewerbepark KG<br />
Oberhausen 100,00 -12.058 -4.163<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
Objekt Markt Schwaben Burgerfeld KG<br />
Cologne 100,00 -16.366 19.510<br />
Concordia Hotel-Betriebs GmbH Oberhausen 100,00 -2.366 -547<br />
Concordia Mietverwaltungs-GmbH Oberhausen 100,00 100 -1<br />
Concordia Parkhaus Betreibungsgesellschaft mbH Cologne 100,00 -2.009 342<br />
Concordia Wohnungseigentumsverwaltungs-<br />
GmbH<br />
Oberhausen 100,00 96 -5<br />
GBS Gebäude Betreuungs-Service GmbH Cologne 100,00 -176 -25<br />
Goldpunkt Beteiligungs- und<br />
Grundstücksverwaltungsgesellschaft mbH<br />
Berlin 100,00 27.419 10.219<br />
LÜCIFA Lübecker Cigarettenfabrik<br />
Grundstücksgesellschaft mbH<br />
Lübeck 100,00 -3.467 -809<br />
Meteor Immobilienverwaltungsgesellschaft mbH Cologne 100,00 5.127 -19<br />
Montanushof Einkaufszentren Beratungsund<br />
Vermietungsgesellschaft mbH<br />
Cologne 100,00 -399 -433<br />
Mundus Immobilienverwaltungsgesellschaft mbH Cologne 100,00 -665 -363<br />
Süsswarenfabrik Berlin-Weissensee GmbH Berlin 100,00 9.582 -2.385<br />
VKK Versicherungs-Kontor Köln GmbH Cologne 100,00 -383 -278
Investment <strong>Holding</strong>s Group<br />
Undertakings Registered <strong>Holding</strong> in Equity Result for the<br />
office capital KDM latest financial year<br />
% /currency in th. /currency in th.<br />
Abroad<br />
Castaways Management Inc. Miami 50,00 4.052 -218<br />
US$ US$<br />
Castaways Partnership Miami 75,00 12.261 0<br />
US$ US$<br />
CCP Commercial City Properties N.V. Amsterdam 100,00 -716 -2.467<br />
hfl hfl<br />
CCP <strong>Holding</strong> I B.V. Amsterdam 100,00 8.941 2.558<br />
hfl hfl<br />
CCP Objekt I B.V. Amsterdam 100,00 19.909 765<br />
hfl hfl<br />
Concordia Florida Properties Inc. Miami 87,50 10.279 0<br />
US$ US$<br />
Hedvigsborg B.V. Apeldoorn 100,00 5.901 1.411<br />
hfl hfl<br />
Oceania Joint Venture Miami 75,00 9.707 -3.366<br />
US$ US$<br />
Significant group undertakings excluded from the consolidated financial statements pursuant to Art. 296 (2) HGB<br />
and Art. 313 (2) No. 1 s. 2 HGB)<br />
Germany<br />
Concordia Bauträger GmbH Cologne 100,00 25 15<br />
Concordia Wohnungsgesellschaft mbH Cologne 100,00 187 148<br />
GbR Berlin-Mitte, Französische Strasse 45-48 Cologne 52,50 -4975 05 GbR Hamburg, Stresemannstrasse 342 Cologne 100,00 -1.325 137<br />
Immo Conception Werbeagentur GmbH Cologne 100,00 -42 -2<br />
Vetter-Weyersberg GmbH Cologne 100,00 110 9<br />
83
Investment <strong>Holding</strong>s Group<br />
Undertakings Registered <strong>Holding</strong> in Equity Result for the<br />
office capital KDM latest financial year<br />
% /currency in th. KDM/currency in th.<br />
Abroad<br />
CCP <strong>Holding</strong> II B.V. Amsterdam 100,00 28 -6<br />
hfl hfl<br />
CCP Objekt II B.V. Amsterdam 100,00 -14 0<br />
hfl hfl<br />
CCP Objekt III B.V. Amsterdam 100,00 91 0<br />
hfl hfl<br />
CCP Objekt IV B.V. Amsterdam 100,00 -14 0<br />
hfl hfl<br />
Undertakings included in the Consolidated financial statements by the equity method (Art. 313 (2) No. 2 HGB)<br />
Germany<br />
AMBV Atrium-Mall Betriebs- und<br />
Vermietungsgesellschaft mbH<br />
Leverkusen 35,00 4.504 247<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
2. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 -26.331 -4.140<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
3. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 -8.411 -2.100<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
4. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 -5.286 121<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
5. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 -6.395 -962<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
6. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 8.170 -2.406<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
7. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 5.608 995<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
8. Immobilien-Fonds-Gesellschaft KG<br />
Oberhausen 50,00 48.5<strong>98</strong> 5.979<br />
Concordia Bau und Boden <strong>AG</strong> & Co.<br />
Objekt Berlin, Alte Jakobstrasse KG<br />
Oberhausen 50,00 -3.850 321<br />
Concordia Bauträger GmbH & Co. KG Cologne 50,00 -10.272 366<br />
Gaststättenbetriebsgesellschaft<br />
Montanushof mbH<br />
Rastatt 50,00 -1.967 -679<br />
Gewerbepark Markranstädt GmbH<br />
Bauträgergesellschaft<br />
Leipzig 48,00 -794 138<br />
Grundrendite Liegenschaften & Co.<br />
Beteiligungs KG<br />
Oberhausen 50,00 79.597 -1.350<br />
Grundstücksgesellschaft An den Elbbrücken mbH Hamburg 50,00 -625 -21<br />
Abroad<br />
84<br />
Objektgesellschaft Berlin, Kommandantenstrasse GbR Cologne 50,00 78 5 0 5<br />
Panda Schuhfabrik GmbH & Co. KG i.GV. Berlin 50,00 4 4<br />
CCP <strong>Holding</strong> III B.V. Amsterdam 50,00 -21 -6<br />
hfl hfl
Undertakings Registered <strong>Holding</strong> in Equity Result for the<br />
office capital KDM latest financial year<br />
% /currency in th. KDM/currency in th.<br />
Participations<br />
Germany<br />
F.A. Ulrich GmbH & Co. KG Leipzig 0,75 -20.631 1 -2.538 1<br />
GbR Berlin-Mitte, Alte Jakobstrasse 79/80 Cologne 1,00 45.620 2.957<br />
GbR Dortmund, Königswall 1 Cologne 2,95 -59.124 -11.363<br />
GbR Hamburg, Amsinckstrasse 40 Cologne 5,00 111 2 0<br />
GbR Hamburg, Billwerder Neuer Deich Hamburg 5,00 -1.333 -801<br />
GbR Hannover-List Cologne 2,95 -75.717 -13.026<br />
GbR Köln, Hohenstaufenring 42 Cologne 5,00 -2.305 3 199 3<br />
GbR München, Senefelder Strasse 1 Cologne 3,00 - -595 6<br />
Grundrendite Liegenschaften & Co. Oberhausen 1,00 59.177 3.949<br />
Wohnbauten KG<br />
Grundrendite Liegenschaften GmbH & Co. Oberhausen 0,14 3.064 -151<br />
Immobilien-Fonds Gesellschaft KG<br />
Projektgesellschaft Spittelmarkt GbR Propria Berlin 50,00 -4.138 -275<br />
Bauträger- und Verwaltungsgesellschaft und<br />
Concordia Bau und Boden <strong>AG</strong><br />
Projektgesellschaft Spittelmarkt Quartier III GbR Berlin 50,00 -6.<strong>98</strong>8 -1.351<br />
Bilfinger + Berger Projektentwicklungsgesellschaft<br />
mbh und Concordia Bau und Boden <strong>AG</strong><br />
Projektgesellschaft Spittelmarkt Quartier V GbR Berlin 50,00 -6.162 -2.753<br />
Propria Bauträger- und Verwaltungsgesellschaft<br />
mbh und Concordia Bau und Boden <strong>AG</strong><br />
Rolf Ulrich Verwaltungsgesellschaft mbh Halle 25,00 410 1 -38 1<br />
Ross GmbH Munich 10,00 4 4<br />
Wohndomicil Am Henningbach Munich 25,00 4 4<br />
Grundstücksentwicklungs GmbH & Co. Objekt<br />
Markt Schwaben KG<br />
Wohndomicil Am Henningbach Munich 25,00 4 4<br />
Grundstücksentwicklungs GmbH<br />
1 2 3 4 5 preliminary (31.12.1994) (31.12.1993) no details (31.12.1997)<br />
6 result acc. to cash receipts and disbursement method 1997<br />
Investment <strong>Holding</strong>s Group<br />
85
Consolidated Balance Sheet<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Consolidated balance sheet as at 31 December 19<strong>98</strong><br />
Assets 31.12.19<strong>98</strong> 31.12.1997<br />
KDM KDM<br />
Outstanding payments on subscribed capital 0 3<br />
A. Fixed assets<br />
I. Intangible assets<br />
1. Rights 210 192<br />
2. Goodwill 1.237 1.422<br />
1.447 1.614<br />
II. Tangible fixed assets<br />
1. Land and leasehold rights with residential,<br />
commercial and other buildings 209.614 208.171<br />
2. Land without buildings 57 57<br />
3. Mineral rights 0 0<br />
4. Other plant, operational and office equipment 1.559 1.399<br />
5. Construction in progress 922 0<br />
212.152 209.627<br />
III. Financial assets<br />
1. Shares in group undertakings 214 214<br />
2. Participations in associated undertakings 168.993 180.889<br />
3. Loans to associated undertakings 2.118 1.943<br />
4. Participations 4.590 1.350<br />
5. Other loans 105 122<br />
176.020 184.518<br />
Total fixed assets 389.619 395.759<br />
B. Current assets<br />
I. Land intended for sale and other stocks<br />
1. Land without buildings 22.314 17.661<br />
2. Land and leasehold rights with uncompleted buildings 415.664 522.956<br />
3. Land and leasehold rights with completed buildings 13.416 27.089<br />
4. Work in progress 14.165 58.067<br />
5. Advance payments made 2.064 4.109<br />
467.623 629.882<br />
6. Advance payments received -173.117 -291.308<br />
294.506 338.574<br />
II. Debtors and other assets<br />
1. Debtors relating to rents 2.523 2.474<br />
2. Debtors relating to sales of land 24.195 29.674<br />
3. Debtors relating to management services 618 114<br />
4. Other trade debtors 177 167<br />
5. Amounts owed by group undertakings 2.955 16.922<br />
6. Amounts owed by associated undertakings 103.871 107.548<br />
7. Amounts owed by undertakings in which participations are held 390.917 225.741<br />
8. Other assets 85.406 88.683<br />
610.662 471.323<br />
III. Marketable securities<br />
Other marketable securities 15 522<br />
IV. Liquid funds<br />
Cash in hand and at banks 269.165 281.537<br />
Total current assets 1.174.348 1.091.956<br />
C. Prepaid expenses and deferred charges<br />
1. Premiums 1.221 559<br />
2. Other 724 1.035<br />
1.945 1.594<br />
1.565.912 1.489.312<br />
86
Consolidated Balance Sheet<br />
Liabilities 31.12.19<strong>98</strong> 31.12.1997<br />
A. Capital and reserves<br />
KDM KDM<br />
I. Subscribed capital 180.172 180.000<br />
II. Participation rights capital 70.893 70.850<br />
III. Capital reserves<br />
IV. Revenue reserves<br />
47.379 47.050<br />
1. Legal reserve 5.000 5.000<br />
2. Deficit brought forward -144.702 -147.<strong>98</strong>1<br />
V. Accumulated deficit<br />
- of which deficit brought forward KDM -119.229<br />
(1997: KDM -119.229)<br />
-117.890 -119.229<br />
VI. Minority interests 1.760 5.906<br />
42.612 41.596<br />
B. Provisions for liabilities and charges<br />
1. Provisions for pensions and similar obligations 7.781 7.720<br />
2. Tax provisions 11.889 26.221<br />
3. Provisions for mining damage 13.414 12.587<br />
4. Other provisions 114.830 154.661<br />
147.914 201.189<br />
C. Liabilities<br />
1. Loans 286.235 199.050<br />
2. Bank loans and overdrafts 854.625 836.353<br />
3. Amounts owed to other lenders 11.094 14.425<br />
4. Trade creditors 76.066 65.329<br />
5. Amounts owed to group undertakings 351 132<br />
6. Amounts owed to associated undertakings<br />
7. Amounts owed to undertakings<br />
36.904 29.670<br />
in which participations are held 39.822 33.640<br />
8. Other creditors 60.580 56.889<br />
1.365.677 1.235.488<br />
D. Deferred income 9.709 11.039<br />
1.565.912 1.489.312<br />
87
Consolidated Profit and Loss Account<br />
Concordia Bau und Boden <strong>AG</strong>, Oberhausen<br />
Consolidated Profit and Loss Account<br />
for the year ended 31 December 19<strong>98</strong><br />
19<strong>98</strong> 1997<br />
KDM KDM<br />
1. Revenues<br />
a) from property management 46.748 52.747<br />
b) from sale of land 132.077 309.061<br />
c) from project management 681 175<br />
d) from other activities and services 74.317 154.613<br />
2.Decrease in stock of land intended for sale<br />
with uncompleted buildings, and work in progress -111.937 -240.315<br />
3.Other operating income 141.802 105.186<br />
4.Cost of purchased goods and services<br />
a) cost of property management 51.223 48.824<br />
b) cost of land intended for sale 69.117 117.271<br />
c) cost of other goods and services 30.341 80.246<br />
5.Staff costs<br />
a) wages and salaries 21.835 19.409<br />
b) social security and pension cost 5.099 4.070<br />
--of which pension cost KDM 1.824 (1997: KDM 1.072)--<br />
6.Depreciation, amortization and write-downs<br />
a) on intangible and tangible fixed assets 11.351 16.684<br />
b) amounts written off current assets and write-downs<br />
in excess of company practice 33.752 11.864<br />
7.Other operating charges 114.186 145.153<br />
8.Income from associated undertakings 442 2.805<br />
9.Income from participations 45 9.102<br />
10. Income from other long-term investments and loans 183 175<br />
11. Other interests and similar income 21.972 20.417<br />
12. Amounts written off long-term and short-term investments 0 383<br />
13. Interests and similar charges 90.456 81.872<br />
14. Charges relating to loss transfer under agreement 513 758<br />
15. Charges relating to associated undertakings 9.097 13.252<br />
16. Result from ordinary activities -130.640 -125.820<br />
17. Extraordinary income 153.9<strong>98</strong> 79.739<br />
18. Extraordinary expenses 33.630 0<br />
19. Extraordinary result 120.368 79.739<br />
20. Taxes on income -11.471 -1.556<br />
21. Other taxes 1.684 1.419<br />
22. Loss for the year -485 -45.944<br />
23. Loss brought forward from the previous year -119.229 -119.229<br />
24. Amounts allocated to (previous year withdrawn from) deficit brought forward -672 44.395<br />
25. Minority interests in result for the year -2.496 -1.549<br />
26. Accumulated deficit -117.890 -119.229<br />
88
The edition of the information brochure “Quartal“ and the sales magazine “Eigentumswohnungen“ shown here can be ordered free of charge.<br />
Impressum<br />
Concordia Bau und Boden <strong>AG</strong><br />
Graf-Zeppelin-Strasse 10-11<br />
46149 Oberhausen<br />
Telephone 02 08/6 59 19-30<br />
Telefax 02 08/6 59 19-48/49<br />
Internet www.concordia-bau.de<br />
HRB 605 Amtsgericht Oberhausen<br />
Branch offices<br />
Head quarters<br />
50668 Köln<br />
Oppenheimstrasse 9<br />
Telephone 02 21/973 77-0<br />
Telefax 02 21/973 77-110<br />
13086 Berlin<br />
Herbert-Bayer-Strasse 7<br />
Telefphone 0 30/20 22 04 - 0<br />
Telefax 0 30/20 22 04 - 10<br />
Offices<br />
13086 Berlin<br />
Herbert-Bayer-Strasse 4<br />
Telephone 0 30/47 02 33 33<br />
Telefax 0 30/47 02 33 34<br />
44137 Dortmund<br />
Königswall 1<br />
Telephone 02 31/91 30 30-0<br />
Telefax 02 31/91 30 30-10<br />
22761 Hamburg<br />
Stahltwiete 23<br />
Telephone 0 40/851 37 18<br />
Telefax 0 40/850 75 27<br />
30163 Hannover<br />
Lister Strasse 6-18<br />
Telephone 05 11/962 57-10<br />
Telefax 05 11/962 57-15<br />
70178 Stuttgart<br />
Christophstrasse 11<br />
Telephone 07 11/23 94 90<br />
Telefax 07 11/236 04 51<br />
Conception, Design and Realization:<br />
RW Konzept GmbH, Cologne<br />
Translation:<br />
This version of the annual report, prepared<br />
for the convenience of the<br />
English-speaking reader, has been<br />
translated from the original German<br />
version by Düchting Translation Service,<br />
Düsseldorf.<br />
The German version of the annual report<br />
prevails.<br />
Photographs:<br />
Christoff Geissel, Cologne<br />
Matthias Jankowiak, Berlin<br />
Martin Langhorst, Cologne<br />
Marcus Müller, Leverkusen<br />
Printed on environmentally compatible<br />
paper.<br />
89
Concordia Bau und Boden <strong>AG</strong><br />
Graf-Zeppelin-Strasse 10-11<br />
46149 Oberhausen<br />
Telephone 02 08/6 59 19-30<br />
Telefax 02 08/6 59 19-48/49<br />
Internet www.concordia-bau.de
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