Commerz Grundbesitz-Investmentgesellschaft mbH (CGI) signed a lease agreement on behalf of the hausInvest global open-ended property fund which it manages, letting 11,000 m² at the Fund's New York object, the Manhattan Mall. The new tenant is FCB (Interpublic Group), one of the largest advertising companies worldwide. The lease has a lifetime of 17 years, and counts among the largest ones signed in Midtown Manhattan since the beginning of this year.
According to statements made by the Fund Management, the proper market timing in the letting area was a decisive factor in competing for the best real estate yield.
"We are convinced that we chose the perfect moment for signing this lease, because rent rates have reached a sound level, while the length of the lease term will secure these currently excellent conditions on the New York real estate market for the Fund over a long period of time," says Dr. Frank Pörschke, Management Spokesman of Commerz Grundbesitz Group.
The Manhattan Mall represents an office and retail building in downtown New York, very close to the Broadway and the Empire State Building. The building was originally constructed in 1911, completely remodelled and modernized in 1989 and once again between 2001 and 2003. The usable floor space approximates 90,710 m².
The Manhattan Mall was the first object that CGI acquired for its hausInvest global open-ended property fund in March of 2004. The investment volume equalled €340 million. Altogether, the Fund portfolio currently includes 12 properties in 5 countries. With a one-year performance of 4.1% as of 31 June 2006, hausInvest global clearly counts among the more successful funds in the industry.