Private real estate fund Redevco Germany is on a real estate buying spree. According to its Chairman, Etienne Brenninkmeier, it wants to invest annually between EUR 120 to 140 in additional real estate.
The restructuring of RedevcoÂ's portfolio is in full progress. After the decision had been taken to take the real estate activities out of the C&A retail operations in 1997, a formal split between Redevco and C&A followed two years later.
As a result a family holding company was formed, Cofra, a real estate company, which from its very beginning had assets in excess of EUR 4.0 bln. Today that has increased to EUR 5.3 bln, of which EUR 1.6 bln is invested in Germany.
All signs indicate growth. The seven European Redevco companies will have to develop in to full commercial real estate companies. In Europe only 50% of its portfolio is let to the mother company.
In Germany the medium term objective is to have a portfolio which consists of 60% of retail outlets, 25% in offices and 15% in logistics centers.
A second major objective is to pursue value increases on its present holdings. It is not known which yields are realized today - there are no public figures available - and if any third parties are involved.
Major projects presently on hand are office building Avalon in Munich, the Metropolitan in Dusseldorf and an as yet unnamed project in Stuttgart. It is expected that some 15% of the annual investments willl be directed towards project development. Also the interest in logistics centers located near motorways is large.
'We are looking for partners in business, brokers, architects, project developers, construction companies and cities to realize our plans', summarizes Etienne Brenninkimeier his companies ambition.
(source: Immobilien Zeitung)