Deka Immobilien has taken advantage of the excellent market situation in the United States to further optimize its portfolio. The real estate fund company belonging to the German Savings Banks Financial Group sold three US properties from Deka-ImmobilienEuropa for the equivalent of €550 million (approx. $725 mln). The sale resulted in considerable gains for the investors.
"These transactions represent the conclusion of our sales activities for Deka-ImobilienEuropa in the current year and we will now concentrate on new growth in our core markets of Europe," commented Franz Lucien Mörsdorf, Management Spokesman, on the sales. For further portfolio diversification, fund management is now planning additional purchases in the established European markets. "In doing so, however, we will not buy at any price. As we reduce our liquidity level, it is important not to bring the write-downs of the future into our portfolio," continued Mörsdorf.
In New York, Macklowe Properties acquired the property at 1330 Avenue of the Americas. The property had been in Deka-ImmobilienEuropa's portfolio since March 2000. An affiliate of Beacon Capital Partners, LLC, purchased the property at 600 California Street in the central business district of San Francisco. Beacon is headquartered in Boston, Massachusetts. 600 California Street was added to the investment fund in May 1999. The new owner of Highland Landmark II, an office building in the Oak Brook district of Chicago, is GLL Real Estate Partners, Munich. This property was acquired for Deka-ImobilienEuropa in December 1998.
Deka-ImmobilienEuropa currently has investments in 15 countries and has 78 properties in its portfolio. The fund currently has assets of €6.9 billion. The vacancy rate (BVI) is 6.1%. The fund's performance in financial year 2005/2006 was 4.1%.