The GRUNDWERT-FONDS' unit price rises by 1.16 euros, thanks to a large portfolio sale. From October 4, new GRUNDWERT-FONDS shares are available.
DEGI Deutsche Gesellschaft fuer Immobilienfonds mbH
Frankfurt am Main, Oct 1, 2007
The sale of the "SPRING" portfolio from DEGI's real estate fund GRUNDWERT-FONDS, comprising 37 German properties, to three companies of the Whitehall Fund managed by Goldman Sachs, has been completed with disposal of the properties and receipt of the purchase price payment in the fund on September 28, 2007.
Because the portfolio was sold above the current market valuation of 2.43 billion euros, the unit price of the GRUNDWERT-FONDS on September 28, 2007 showed a one-off rise of 1.16 euros or 1.65 percent to reach 71.35 euros. The one-year performance rises to 4.1 percent.
41 percent invested outside Germany
DEGI will again be issuing new shares of the fund from October 4, 2007 (SIN: 980780, ISIN: DE0009807800), and will cancel the suspension of share issuance in force since May 7, 2007.
With completion of the transaction, 59 percent of the fund’s real estate holdings are located in Germany, and 41 percent in the rest of Europe. "In line with the progressive internationalization of property markets and our proactive portfolio management approach, we aim to exploit investment opportunities on the European property markets, on the basis of the slimmed-down portfolio", says Bärbel Schomberg, Speaker of DEGI’s Management Board.
Office complex in Helsinki
Office complex purchased in Helsinki
DEGI has purchased an initial property in Helsinki for the GRUNDWERT-FONDS. The office complex, comprising three linked buildings, houses the Finnish IT group TietoEnator and will pass into the fund’s ownership before the end of October 2007 for total investment costs of around 112.2 million euros. The property forms part of an office portfolio in Helsinki comprising three properties that DEGI is acquiring from the Finnish insurance companies VERITAS.
The property is fully let, with a total rental area of 39,680 square meters, and is located in the extended inner-city district in the immediate vicinity of the first motorway ring. The three buildings, completed in 2005, can easily be divided up into smaller rental units.
The Helsinki conurbation, with around 1.3 million residents, is the business, political and cultural capital of Finland. Its office property market comprises around 7.9 million square meters, with a current vacancy ratio of 7.0 percent.
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