In the annual report for the year ending 31 March 2013 Züblin began providing a separate detailed report on the remaining held for sale non-strategic portfolio. The market in the Netherlands has deteriorated further for B and C properties as currently there are a number of portfolios being offered for sale, whereas in Germany demand is slowly shifting from core properties to value-added properties with higher yields.
|Market value as of 31.3.2013||Sales||Change in market value inc. capex||Market value as of 30.9.2013|
|No. of properties||in EUR thousand||Number||in EUR thousand||in EUR thousand||No. of properties||in EUR thousand|
|Germany||12||56 159||2||–9 442||–10 530||10||36 187|
|Netherlands||13||62 860||2||–11 650||–2 000||11||49 210|
|Total||25||119 019||4||–21 092||–12 530||21||85 397|
A further four properties were sold in the first semester of financial year 2013/14. In Germany these were the properties in Langenfeld and Korschenbroich and in the Netherlands one of the two properties in Diemen and the logistics property in Veendam. Three were sold at the market price as of 31 March 2013 and one at EUR 565,000 below the market price.
In the case of one further property in Germany (Arnsberg) a sale was completed after the reporting date at the end of October.
Several sales negotiations are currently ongoing in both countries. Züblin is optimistic that it will be able to sell a significant number of the non-strategic properties in the second half of the year as well.
Changes in market value
The market values of the non-strategic properties had to be corrected downwards by a further EUR 12.5 million during the reporting period. This was largely due to the bankruptcy of the tenant Praktiker in Germany. This tenant rented 100% of two properties and filed for insolvency. It will move out of the properties in November. Re-letting the properties will be difficult due to the usage restrictions and will entail new investment, without creating any added value. As a result a write-down of EUR 7 million had to be taken on the two properties in Jettingen and Neumünster. The remaining negative revaluation of EUR 5.5 million corresponds to a further downward correction of 5% in the portfolio value as of 31 March 2013.