Material assets with future
Purchasing, letting and selling property
IMMOVATION AG purchases consistently let properties in Germany, preferably residential complexes, at around 55% to 65% of their market value. It selects properties whose customary rent and needs-oriented surface area are always in demand.
One of IMMOVATION AG’s current major projects is the revitalization of Salamander Areal, the industrial monument in Kornwestheim near Stuttgart that is known throughout Germany. In addition to the commercial areas that have already been let, a concept has been developed for the future use of the area and agreed with the authorities.
The letting of approx. 19,000 m² of commercial space on the Salamander-Areal in March 2011 is proving to be an extraordinary success. The tenancy agreement with the state of Baden-Württemberg makes it possible to set up a central land register archive for the state for a fixed term of at least twenty years. There is an additional option of three 5-year extensions of the tenancy agreement. By the end of 2017, more than 182 kilometres of files will have been archived on Salamander-Areal and will be managed in future in digital form.
Over and beyond the letting of further commercial spaces, around 120 new rented/ privately owned flats are being created on the area, with around 70 of the rented flats being designed as attractive penthouse apartments in one of the listed buildings. There are also plans for a multi-storey car park with supermarket, kindergarten and a residential complex geared towards senior citizens.
In addition, a significant part of the revitalization plans is the profitable sale of properties to the IMMOVATION property fund of the 3rd KG. An indispensable prerequisite for purchase by the fund of the 3rd KG, however, is that the property should previously have undergone a long-term let as forecast in the prospectus.
Lars Bergmann (member of the management board):
"We are committed to our sales partners and investors, which is why securing our property funds through long-term rental income always comes first."
Professional market analysis
The property research team of IMMOVATION AG keeps a constant eye on the property market in Germany, with a view to selecting suitable investment properties according to a strict set of criteria. In order to arrive at a realistic assessment of market development, a differentiated analysis must be performed in respect of economically strong influx regions and less attractive regions.
Region and partly also position within a town or its environment (micro location) can give rise to considerable differences, which determine the quality of a property. The specifications of our property requirements profile guarantee selection of properties that offer the required potential for a lucrative return.
Strong returns due to rising rents
Positive development for investors: renting accommodation is becoming more and more expensive throughout Germany, as indicated by the Immobilien Verband Deutschland (IVD) in its 2010/2011 housing price comparison list. A study (2010) by empirica, one of three institutions which together form the federal government’s “Council of Real Estate Advisors”, comes to the same conclusion.
The causes: continually rising household figures (single households), low new construction rates in Germany and the economic upswing are resulting in living space becoming scarcer, particularly in large cities and influx regions – the best prerequisites for generating both attractive and strong returns.
Planning and implementing new constructions
Bosestraße in Kassel
Planning and implementing new constructions with rented and privately owned flats including subsequent sale to investors or owner-occupiers is a further entrepreneurial pillar of IMMOVATION AG.
Examples of new construction projects: 21 privately owned flats in 3 city mansions in a central location in Kassel. It proved possible to sell virtually all the flats even before they were completed, giving rise to plans for further city mansions due to the persistently great demand. In addition, two listed properties are being renovated in the same area and developed into investment properties with tax-saving effect.