VIB Vermögen AG expands further its portfolio (DE)

VIB Vermögen AG, a company specialising in commercial real estate management, is continuing on its growth path with the purchase of a retail park in Neu-Ulm, located in Germany's Swabia region, and the transfer to its portfolio of a MAN service station that it has developed itself.
Situated favourably in relation to transportation connections, and within a highly frequented commercial zone at the twin center of Ulm/Neu-Ulm that straddles two German federal states, the property in Neu-Ulm is 100 % rented to companies with high credit ratings.
Rental contracts have been newly negotiated for 15-year periods for two thirds of the rental area. The park's remaining areas are also predominantly rented on a long-term basis. Significant parts of the property have been completely modernised and remodelled. The total rental area amounts to 18,740 m², and will generate an approximately 7.6 % rental return on a €14.8 million investment.
”Our latest acquisition fully aligns with our strategy. This location is very well established on the market and has a very good visibility in the strong economic region of Southern Germany. Given the long-term rental contracts, this retail park fits ideally into our portfolio,” commented Martin Pfandzelter, VIB Vermögen Managing Board member. ”Our portfolio now comprises a total area of around 947,000 m². Our extensive network allows us to continue to realise attractive purchases during periods of strong demand for commercial property.”
VIB Vermögen also transferred its fourth MAN service station, located in Freiburg-Umkirch, to its portfolio in early February. VIB Vermögen developed this property it-self. The service station has been generating rental income since February 1, 2015, yielding a 7.4 % rental return. The total investment stands at €7.5 million, and the rental contract carries a duration of 20 years.
Both projects comprise a total volume of €22.3 million, and form part of the investment pipeline that was the basis for issuing the 2014/2016 mandatory convertible bond in December of last year.
Source: VIB Vermögen