The German real estate fund DIFA has devaluated the German real estate in both its funds DIFA-Fonds Nr. 1 and DIFA-Grund for approx. â¬200 mln. Especially the regions of Berlin and Rhein-Main were affected with a share of 81%.
The experts of DIFA (Deutsche Immobilien Fonds AG) have made new valuations for 38 German properties within the DIFA-Fonds Nr. 1 and DIFA-Grund. The valuation changes of minus â¬110 million (DIFA-Fonds Nr. 1) and minus â¬98 million (DIFA-Grund) are concentrated for 81% in the regions of Rhein-Main and Berlin. Frank Billand, Member of the DIFA-Board has established these new values on the current weakness of the market and explained that these current revaluations of the domestic real estate further reflect the cyclic low of the German real estate market.
Fund performance weakens
The new valuations effect the performance of both the funds. The German oriented DIFA-Fonds Nr. 1 shows a value development before taxes of 0.3% for a one year period. The DIFA-Grund fund still reaches 1.4%. According to the company, both funds have an average annual value increase of 4.4 to 4.7% on a ten-year basis.
Between April 2002 and December 2004 the DIFA properties in the Berlin and Rhein-Main regions have already been devaluated with â¬91.5 million and â¬124.5 million respectively. However Billand still has a positive view on the future: âWith these new valuations a foundation has been laid so the stable net rent yield of the funds of 4.7% (DIFA-Fonds no. 1) and 5.2% (DIFA-Grund) will again become the decisive element of the success of the company.â
Source: Immobilien Manager