feri wealth management gmbh
DESCRIPTION
Feri Wealth Management GmbH. Direct Investments in German Real Estate. Dr. Jürgen Schäfer Berlin, October 27, 2006. Strategy development & consultancy. Selection, management & reporting. general investment strategy single investment strategy portfolio (re-)development management - PowerPoint PPT PresentationTRANSCRIPT
Feri Wealth Management GmbH
Direct Investments in German Real Estate
Dr. Jürgen SchäferBerlin, October 27, 2006
- 2 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Real estate and real estate funds
Real estate locations
Feri Real Estate Services
• general investment strategy
• single investment strategy• portfolio (re-)development• management• portfolio disinvestments
Strategy development & consultancy
• portfolio and single investments
• funds, listed and other non-listed vehicles
• external service providers
• investment and disinvestment processes
• performance measurement and controlling
Selection, management & reporting
Rents and property prices
Market research, forecast & rating
Feri Real Estate Services for both private and institutional clients …
- 3 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
... while covering a variety of property investments ...
Indirect property investments
Properties
i.e. offices, hotels, multi-family,
retail
Direct property investments
Property developments
i.e. offices, hotels,
multi-family,retail
Funds
i.e. open/ closed-ended funds,
property equities- and REIT-fund, fund of funds
Property equities
i.e. property equities,
REITs
Derivates
i.e.index certificates, futures on REITs
Property investments
- 4 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
What happens in German Real Estate markets?
G-REITDemand ...
Supply ...
Further, ...
... for office, retail and residential property is increasing ... from foreign, private and institutional investors is high ... creates rising property prices and falling initial yields
... is driven by „adjustments“
... is often represented by portfolio offers
... comes from private and institutional investors as well as from the government
... banks are again financing property investments with low equity participation... a relatively low interest rate level can be expected for the near future
- 5 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Total office stock
80,00
85,00
90,00
95,00
100,00
105,00
110,00
115,00
Ind
exed
(20
00=
100)
Total return (Class A)
-4
-2
0
2
4
6
8
10
12
14
16
in p
er c
ent
Office rents (Class A)
11,00
11,50
12,00
12,50
13,00
13,50
14,00
14,50
15,00
15,50
16,00
Euro pro m²
Office property market Germany
Source: Feri Rating & Research GmbH (3. quarter 2006)
Rental development Rental forecast Development Forecast
Rents and purchase prices (Class A)
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
in %
com
pare
d to
pre
viou
s ye
ar
Rents
Purchase prices
Development Forecast Development Forecast
- 6 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Total residential stock
35.00036.00037.00038.00039.00040.00041.00042.00043.000
in m
io. m
²year
Total return (Old building)
-2
0
2
4
6
8
10
in p
er c
ent
Rents and purchase prices (Old building)
-8
-6
-4
-2
0
2
4
in %
com
pare
d to
pre
viou
s ye
ar
Rents
Purchase prices
Residential Rents (Old building)
6,00
6,50
7,00
7,50
8,00
8,50
9,00
Euro pro m²
Residential property market Germany
Source: Feri Rating & Research GmbH (3. quarter 2006)
Rental development Rental forecast Development Forecast
Development Forecast Development Forecast
- 7 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Total retail stock
80.000
85.000
90.000
95.000
100.000
105.000
110.000
115.000
120.000
125.000
Th
. m
²
Total return (Class A)
-6
-4
-2
0
2
4
6
8
10
in p
er
ce
nt
Rents and purchase prices (Class A)
-12
-10
-8
-6
-4
-2
0
2
4
6
in %
com
pare
d to
pre
viou
s ye
ar
Rents
Purchase prices
Retail rents (Class A)
65,00
70,00
75,00
80,00
85,00
90,00
95,00
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Euro pro m²
Retail property market Germany
Rental forecastDevelopment Forecast
Source: Feri Rating & Research GmbH (3. quarter 2006)
Development ForecastDevelopment Forecast
Rental development
- 8 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Which urban areas carry a high potential at low risks?
Source: Feri Rating & Research GmbH (3. quarter 2006)
The German office property map shows ...
... in comparison with other European countries a good diversification of attractive property locations
and
... nevertheless a clear develop- ment of winning cities.
- 9 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Which parts of Germany represent favourable residential investment opportunities?
The German residential property map shows ...
... that people do not move to places where apartments are empty
but
... inhabitate regions where they find a working place.
Source: Feri Rating & Research GmbH (3. quarter 2006)
- 10 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
What are the best places for retail property investments?
The German retail property map shows ...
... that excellent retail space can be found inner-city and outer- city.
Source: Feri Rating & Research GmbH (3. quarter 2006)
- 11 - © Feri Wealth Management GmbHDr. Jürgen Schäfer
Conclusion
• property owners should check, whether a sale is profitable
• property investors should search for locations that are not in the focus of foreign, private and institutional investors
• property yields are still attractive in relation to many other countries
• intense competition between investors that target German property leads to a demand for expertise in investment selection
Contact details
Feri Wealth Management GmbH
Haus am Park
Rathausplatz 8-10
D-61348 Bad Homburg v.d.H.
Germany
These information are provided by the Feri Wealth Management GmbH. The data, analyses, forecasts and concepts containted in this presentation are for your information only and without responsibility. No responsibility is taken for the correctness of these information. The presentation must not be perceived as a fiscal, legal or other kind of consultancy and does not provide a basis for the administration of assets or the recommendation and consultancy concerning the disposition of assets. The performance in the past is not a guarantee for future performance. The share price as well as the generated return may rise or fall, which is not guaranteed. The presentation has to be kept in confidence. Without the prior sanction of Feri Wealth Management GmbH, this presentation may only be used for internal purposes.
Dr. Jürgen SchäferPartnerHead of Real Estate
Phone +49 (6 172) 9 16 - 3119Fax +49 (6 172) 9 16 - 1119E-Mail [email protected]
- 12 -