Annual Report 2011-2012

Portfolio Germany

Portfolio development

The renovation of the “Stadtfenster” office building in Dortmund is now complete. The rentable space is 3845 m². As of 31. March 2012 1147 m² was still available. After balance sheet date the remaining space was successfully fully let. The vacancy rate has reduced by a further 2.0% through new lettings and extensions of rental agreements. During the financial year the company sold the office property in Berlin, the residential part of the property in Monheim and the retail property in Deggendorf. Shortly after the year-end the company also sold the logistics property in Frechen.

The local asset management team was successfully able to extend the lease contract with the main tenant at Nagelsweg 37–39, Hamburg, with rentable space of 5100 m², to the end of 2016. At the same time it was invested in upgrading the property's energy sustainability footprint. These two measures boosted the value of the property by 3.7% to EUR 19.7 million.

Market development

The German real estate market performed well in 2011. Investment volumes of around EUR 23 billion were up around 20% on 2010, putting them on a par with volumes in 2005. Only in the two boom years of 2006 and 2007 investment volumes were significantly higher. Core properties in particular remain very popular. Around half of all transactions were registered in the top six property centres (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne and Munich); ZIAG Immobilien AG's strategy is to focus on the core markets of North Rhine Westphalia and Hamburg. The transaction market was very much dominated by sales of individual properties against portfolio deals.

As a safe asset class, real estate is currently highly attractive for investors in comparison with potential alternative investments. Yields reached their high for this market cycle in the second half of 2009 and then fell steadily over the following quarters. This trend continued until mid-2011, with yields stabilizing since then. The outlook for the German real estate market is good. The conditions for the German economy to continue growing are in place. These include strong business sentiment and full order books, the continued decline in unemployment in 2012 and a further rise in disposable income by around 2.5%.

Portfolio overview

Portfolio overview
CHF/EUR in million 31.3.2012 31.3.2011
     
Market value in CHF 330.8 360.5
Market value in EUR 274.7 277.2
Annual rental income in CHF 23.5 25.5
Annual rental income in EUR 19.5 19.6
Vacancy rate 13.5% 15.5%

Major tenants

Major tenants
Tenant Sector   % share of annual rental income
    Portfolio Germany Total
       
Antalis GmbH, Frechen Distribution/paper 10.0% 3.7%
Praktiker Vierte Baumärkte GmbH, Jettingen/Neumünster DIY/supermarket 6.8% 2.5%
Spar Leasing- und Vermietungsgesellschaft GmbH, Halle Supermarket 4.4% 1.6%
Robert Bosch GmbH, Stuttgart Technology 3.4% 1.3%
Panalpina Welttransport (G) GmbH, Hamburg Forwarding 3.4% 1.2%
Total   28.0% 10.3%

Lease contract analysis EUR in million

Lease contract analysis
EUR in million
Prop. No. City, address Property certificates Züblin EMS Date of acquisition Year of construction/ renovation Annual rental income CHF 1000 Vacancy (CHF) % Ownership Discount rate % Plot size m2 Office m2 Retail m2 Trade/ logistics m2 Other space m2 Total usable space m2 Vacancy m2 Vacancy (m2) % No. of parking spaces
Office                                  
18 Hamburg, A.-Einstein-Ring 17–21   1.1.1999 1992 1 825 7.6 6.00 7 538 13 590 340 13 930 629 4.5 246
19 Hamburg, Nagelsweg 37, 39   1.1.1999 1986 1 374 6.8 5.50 4 616 8 873 490 9 363 245 2.6 191
20 Hamburg, Wandsbeker Zollstr. 11–19   1.1.1999 1970 2002 1 105 2.9 5.60 2 901 6 531 782 7 313 235 3.2 100
  Total region of Hamburg         4 304 6.2     15 055 28 994 1 612 30 606 1 109 3.6 537
                                     
21 Düsseldorf, Rossstrasse 96   1.11.2001 1984 2009 1 213 1.6 5.10 1 315 6 393 46 6 439 0.0 75
22 Dortmund, Hansastrasse 30 DGNB 1.7.2004 1986 2011 460 27.5 5.10 627 3 015 544 286 3 845 1 147 29.8 0
23 Witten, Marktstrasse 2   1.7.2004 2002 478 12.0 6.20 687 1 780 1 110 620 3 510 779 22.2 0
  Total region of Düsseldorf         2 150 10.7     2 629 11 188 1 654 952 13 794 1 926 14.0 75
                                     
24 Stuttgart, Vor dem Lauch 14     1.1.2000 1982 816 32.9 6.50 6 998 7 788 547 333 8 668 3 108 35.9 180
25 Stuttgart, Mittlerer Pfad 2–4     1.12.2000 1991 1 752 35.8 7.00 8 521 19 090 2 625 21 715 8 108 37.3 299
26 Stuttgart, Mittlerer Pfad 9     1.6.2000 1991 1 022 4.9 6.40 3 620 7 348 375 123 7 845 375 4.8 121
  Total region of Stuttgart         3 590 28.5     19 139 34 226 922 3 081 38 228 11 591 30.3 600
                                     
27 Wiesbaden, Kreuzberger Ring 24     1.8.2001 2001 285 43.6 5.70 2 372 3 631 77 3 708 1 327 35.8 98
28 München-Germering, Streiflacher Strasse 7     1.3.2002 1999 390 21.0 6.10 2 512 3 303 225 3 528 777 22.0 70
  Total others         675 32.4     4 884 6 934 302 7 236 2 104 29.1 168
                                     
  Total office         10 719 17.6     41 707 81 342 1 654 922 5 947 89 864 16 730 18.6 1 380

Ownership of 100%

Condominium ownership

Leasehold

M Minergie

DGNB Deutsche Gesellschaft für Nachhaltiges Bauen

HQE Haute qualité environnementale

BREEAM BRE environmental assessment method

Energie-Monitoring-Systems (EMS) existing

Energie-Monitoring-Systems (EMS) in planning

Prop. No. City, address Property certificates Züblin EMS Date of acquisition Year of construction/ renovation Annual rental income CHF 1000 Vacancy (CHF) % Ownership Discount rate % Plot size m2 Office m2 Retail m2 Trade/ logistics m2 Other space m2 Total usable space m2 Vacancy m2 Vacancy (m2) % No. of parking spaces
Logistics                                  
  Region of Düsseldorf                                  
29 Frechen, Europaallee 19     29.12.2006 2006 2 351 0.0 7.10 50 625 3 000 19 740 22 740 0.0 178
Retail                                  
30 Neumünster, Haart 190     1.7.2004 1998 967 0.0 6.20 20 459 368 6 337 1 080 7 785 0.0 207
31 Hannover, Badenstedter Strasse 128     1.7.2004 1998 100.0 8.00 26 443 10 535 10 535 10 535 100.0 262
  Total region of Hannover         967 31.0     46 902 368 16 872 1 080 18 320 10 535 57.5 469
                                     
32 Arnsberg, Zum Schützenhof 1     1.7.2004 1979 1 021 7.0 6.00 6 872 375 7 984 687 9 046 503 5.6 276
33 Dortmund-Aplerbeck, Eggensteinstrasse 7     1.7.2004 1980 491 0.0 6.40 11 865 4 450 4 450 0.0 97
34 Marl, Marler Stern 1–80     1.7.2004 1974 464 20.4 6.70 2 222 2 563 2 563 535 20.9 0
35 Neuwied-Niederbieber, Neuer Weg 53     1.7.2004 1981 173 0.0 6.30 4 933 1 600 1 600 0.0 59
36 Korschenbroich, An der alten Post 1–9     1.7.2004 1990 429 22.2 6.10 4 035 925 1 843 3 267 6 035 1 300 21.5 96
37 Langenfeld, Marktplatz 2–6     1.7.2004 1991 532 12.7 6.10 2 347 1 025 1 702 1 710 4 437 774 17.4 64
38 Mönchengladbach, Hindenburgstrasse 75     1.7.2004 1983 2 343 17.0 6.00 7 578 2 423 6 239 1 287 9 949 2 490 25.0 406
39 Monheim, Rathausplatz 2A, 6–12     1.7.2004 1992 603 5.7 6.20 3 575 1 055 2 537 767 4 359 946 21.7 66
  Total region of Düsseldorf         6 057 13.1     43 427 5 803 28 918 7 718 42 439 6 548 15.4 1 064

Ownership of 100%

Condominium ownership

Leasehold

M Minergie

DGNB Deutsche Gesellschaft für Nachhaltiges Bauen

HQE Haute qualité environnementale

BREEAM BRE environmental assessment method

Energie-Monitoring-Systems (EMS) existing

Energie-Monitoring-Systems (EMS) in planning

Prop. No. City, address Property certificates Züblin EMS Date of acquisition Year of constuction/ rennovation Annual rental income CHF 1000 Vacancy (CHF) % Ownership Discount rate % Plot size m2 Office m2 Retail m2 Trade/ logistics m2 Other space m2 Total usable space m2 Vacancy m2 Vacancy (m2) % No. of parking spaces
  Region of Frankfurt                                  
40 Wiesbaden, Hagenauer Str. 23, 23 a–c     1.7.2004 1998 478 0.0 6.30 6 909 2 393 205 2 598 0.0 98
  Region of Stuttgart                                  
41 Jettingen, Heilbergstrasse 5     1.7.2004 1971 633 0.0 6.20 18 875 5 815 5 815 0.0 201
                                     
42 Wilhelmshaven, Mühlenweg 146     1.7.2004 2001 638 3.8 6.20 10 004 739 4 161 4 900 297 6.1 161
43 Lübeck, Schwartauer Allee 92     1.7.2004 2001 650 3.3 6.10 5 602 3 168 1 548 69 4 785 177 3.7 86
44 Halle, Am Treff 5     1.7.2004 1970 1 035 0.0 6.50 12 899 6 850 776 7 626 0.0 42
  Total others         2 323 2.0     28 505 3 907 12 559 845 17 311 474 2.7 289
                                     
  Total retail         10 459 11.7     144 618 10 078 66 557 9 848 86 483 17 557 20.3 2 121
                                     
  Total German portfolio         23 529 13.5     236 950 94 420 68 211 20 662 15 794 199 087 34 287 17.2 3 679

Ownership of 100%

Condominium ownership

Leasehold

M Minergie

DGNB Deutsche Gesellschaft für Nachhaltiges Bauen

HQE Haute qualité environnementale

BREEAM BRE environmental assessment method

Energie-Monitoring-Systems (EMS) existing

Energie-Monitoring-Systems (EMS) in planning

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Annual Report 2011-2012

Annual Report 2011-2012 (8.16 MB)