OFFICEFIRST Immobilien – Launch of new real estate company
Bonn/ Frankfurt, 06/30/2016
- Strategic core real estate activities of IVG Immobilien AG to operate on a stand-alone basis
- Strategic focus on economically strong metropolitan regions in Germany
- OFFICEFIRST Immobilien combines stability of a large office portfolio with the potential for a sustainable increase in value
The strategic core real estate portfolio of IVG Immobilien AG will enter the market on July 1, 2016, as a stand-alone corporation under the name OFFICEFIRST Immobilien. As announced, IVG has therefore pooled its most promising German properties in the new subsidiary. OFFICEFIRST Immobilien focusses on the most important metropolitan regions in Germany with a wide portfolio of office properties. Due to a balanced tenant base, long contractual terms, a high occupancy rate and the extensive know-how of the entire team, the company combines stability with the potential for a sustainable increase in value.
"We have reached an important milestone in our corporate development: As a legally separate, stand-alone entity, we can now fully exploit our entrepreneurial potential that is a solid basis for our company", says Michiel Jaski, CEO of OFFICEFIRST Immobilien. “The name OFFICEFIRST Immobilien represents our self-conception – we want to establish the new company as one of the leading players for office properties in Germany. As already announced, the launch of OFFICEFIRST Immobilien as a stand-alone corporation is the next important step on the way to our capital market viability.”
As at March 31, 2016, the portfolio of 97 properties was valued at EUR 3.245bn. OFFICEFIRST Immobilien thereby owns and operates one of the largest office real estate portfolios in Germany. The regional focus is set on the six economically strong German metropolitan regions Frankfurt, Munich, Hamburg, Stuttgart, Dusseldorf and Berlin, where approximately 96 per cent of the properties are located. The balance of the OFFICEFIRST Immobilien portfolio between these areas is beneficial and broadly diversified: the twelve most valuable assets represent 58 per cent of the portfolio value.
The occupancy rate amounted to about 91.6 per cent as at March 31, 2016, while the total annualised in-place rent was about EUR 207m* at the end of the first quarter 2016. Thanks to renowned tenants in the portfolio like Allianz, Daimler or Siemens and a weighted average unexpired lease term (WAULT) of 5.5 years*, the business of OFFICEFIRST Immobilien features high stability and predictability of turnover. This is the basis for OFFICEFIRST Immobilien’s business model, which aims to achieve sustainable increase in terms of profit and value.
The deep knowledge of the German real estate market resulting from many years of experience and the evolved internal structures are the company’s key success factors. OFFICEFIRST Immobilien runs five local offices in the important metropolitan regions Frankfurt, Munich, Hamburg, Dusseldorf and Berlin and features distinctively assigned regional asset managers as contacts for all matters regarding rental space or individual objects.
“We do not only focus on the properties and locations, but also on the realisation of promising opportunities in our development pipeline and a service-oriented approach towards our tenants”, says Oliver Priggemeyer, COO of OFFICEFIRST Immobilien. “Our tenants appreciate that the landlord is available on-site for their concerns. They are aware that they can directly talk to us being the owner.” The direct contact with tenants is a distinct competitive advantage and will be expanded
continuously. Already today, OFFICEFIRST Immobilien is working with great added-value depth of its resources. For the future, the company aims to cover further aspects of the real estate industry without relying on additional third party support. In particular, this also includes the property management.
About OFFICEFIRST Immobilien
OFFICEFIRST Immobilien is focussing on the purchase, management, development and sale of office properties in Germany. This focus is set on selected metropolitan regions with a major emphasis on Frankfurt, Munich, Hamburg, Stuttgart, Dusseldorf and Berlin. With a total value of EUR 3.245bn (as at March 31, 2016), OFFICEFIRST Immobilien is one of the largest owners of office properties in Germany. The company’s objective is to sustainably increase the value of individual objects through great value depth of its own resources regarding all property management activities and the value of the owned property portfolio through active portfolio management.
* Including the net result of the Hilton Hotels in THE SQUAIRE, which are operated under a long term management contract and excluding. c. €2.0m rent from existing non-operating assets.