Approximately 5.53 billion of commercial property changed hands in Germany in Q1 2011 according to international real estate advisor Savills.
Retail transactions accounted for 55% of the total transaction volume and 65% of total portfolio transactions, but the firm highlights that the two major deals in Q1 were both in the retail sector each with a transaction volume of 700 million. These deals were Cerberus' purchase of 44 cash and carry properties and a logistics center from Metro and the Canadian pension fund CPP Investment Board's acquisition of a 50% stake in CentrO Oberhausen.
Apart from these two major deals Savills reports that a further eight transactions totaling over 100 million were completed in Q1 2011. Among these transactions were the sale of the BrahmsQuartier office buildings in Hamburg and Friedrich Carré in Berlin which contributed significantly to the 20% share (1.09 bln.) of the office sector in the total transaction volume. Industrial and warehouse properties accounted for 6% (0.34 bln.) and development sites and hotel investments each accounted for 5% (0.29 bln.) of the total transaction volume. In addition almost 460 million (9%) were invested in mixed-use buildings and special-purpose properties.
Lars-Oliver Breuer, Head of Investment Savills Germany, says: "The strong performance of the investment market was clearly dominated by transactions involving retail properties, particularly by the sale of the Metro portfolio and the CentrO in Oberhausen.
"During 2011 we expect the total investment volume to exceed the 2010 total of 19.7 bln., possibly reaching 20 bln. The lack of supply will be a limiting factor, primarily in the core sector where there is most demand."
Overall there were 250 single asset transactions worth approximately 3.78 bln. in Q1 2011 according to Savills data, while 30 portfolio transactions totaled approximately 1.75 bln.
Broken down into Germany's five major investment markets the firm's research shows that Berlin came out on top with a 10% share of the total transaction volume, followed closely by Hamburg at 9% and Munich, Düsseldorf and Frankfurt each accounted for between 4% and 1%. Thus 73% of transactions in the first quarter of 2011 took place outside the top five markets including in Neuss, near Düsseldorf, Neufahrn Schöneberg, close to Berlin, and Gräfelfing, in the Munich area.