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Germany: Investment Q1 2020

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Activity on the German real estate investment market once again proved exceptionally lively prior to the coronavirus shutdown. Anticipated acquisitions and share investments in large stock portfolios boosted transaction volume (TAV) to the by far best Q1 result ever recorded. The TLG portfolio acquisition in the wake of the amalgamation with Aroundtown, Metro’s sale of more than 80 Real hypermarkets to Sistema Capital Partners SCP as well as several direct and indirect share investments in the Signa portfolio dominated market activity in many respects. Portfolios were significantly higher in demand than recorded during 2018/19. In terms of asset class, office continued to show the strongest performance, but retail also recorded some growth, easily defending its second place. Industrial and logistics again recorded a doubledigit share and ranked third. Investors continued to focus on Germany’s Big 7, even though the regional diversification of most major portfolios led to a more even distribution between the major hubs and other locations than in the two previous years. Due to the focus of the TLG portfolio and further large-scale deals, Berlin recorded a sensational result of €3,7bn. All in all, these investment figures do not reflect the corona crises yet. The impact of the abrupt shutdown will dampen market activity from Q2 onwards, but the extent of the decline is not foreseeable yet. Favorable differences between the current situation and past crises are the pandemic’s temporary nature. In addition, this crisis is not rooted in the real estate market. Thus, according to a survey by Colliers in March, two-thirds of top-level decision-makers plan further acquisitions in real estate.

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Germany: Investment Q1 2020

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Susanne Kiese

Head of Market Intelligence & Foresight | Düsseldorf

Duesseldorf

Susanne joined Colliers International Holding GmbH in February 2016 as Head of Research Germany. Before, she worked as a Senior Research Analyst for Hypothekenbank Frankfurt / Eurohypo, a specialist bank for real estate and public finance for almost 12 years. Susanne was also Research Analyst with Deutsche Gesellschaft für Offene Immobilienfonds (DEGI) GmbH, the property related investment company of Allianz Dresdner Property Group (now part of Aberdeen). 

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