05 January 2016
Klingsöhr Group makes early exit at Kurfürstenstr. 87
Klingsöhr Group has made an opportunistic disposal of a Berlin office asset following an unsolicited offer. In a joint venture with Benson Elliot, a UK-based private equity fund manager, and Rockstone Real Estate KLingsöhr Group acquired Kurfürstenstraße 87, an eight storey, 6,192 sqm office building, in April 2015, alongside a second Berlin property, Budapester Straβe 35. The two buildings were acquired in a sale leaseback transaction with Berliner Volksbank eG. Kurfürstenstraße 87 has been sold at a 4.0% rental yield to a fund backed by a German professional pension scheme, advised by Cornerstone Real Estate Advisors.
Constructed in 1929 as the headquarters of Lenz & Co ("Lenz-Haus"), the listed building – which features a shell limestone façade and entrance lobby – was designed by famed German architect Heinrich Straumer. Straumer, who also designed the iconic Berlin Radio Tower, was a student of Paul Wallot, designer of the Berlin Reichstag. The property was extensively refurbished in 2002 by Berliner Volksbank.
01 April 2015
Acquisition of two Berlin landmarks in sale and lease back transaction
Together with Benson Elliot, the UK-based private equity real estate fund manager, and Rockstone Real Estate, Klingsöhr has closed on the acquisition of two office properties in central Berlin from Berliner Volksbank eG. The transaction involves the acquisition, lease-back and subsequent refurbishment of two prominent buildings, which are located at Budapester Straβe 35 and Kurfürstenstraβe 87 in Berlin's City West. Total value of the transaction, post-redevelopment, is expected to be c. €100 million.
The sale by Berliner Volksbank eG, the sole occupier in both buildings, anticipates a future consolidation by the bank into a single headquarters. Following acquisition, the buildings will be leased back to Berliner Volksbank eG, during which time the Joint Venture will finalise refurbishment plans and tender construction works.
01 November 2014
Acquisition of a residential portfolio in Berlin und Potsdam
In an off-market-transaction Klingsöhr Group acquired 220 residential units on behalf of a German private investor. Klingsöhr Group managed the whole transaction process from acquisition to contract negotiation and financing. The portfolio consists of high-quality old residential buildings from the latter part of the 19th century in Berlin and Potsdam.
31 March 2014
Amazon Development rents remaining 7,200 sqm at Krausenhöfe Estate
Klingsöhr Group lets 7,200 sqm of office space to Amazon Development Center Deutschland GmbH. Amazon is going to move in in February 2015 with employees from different development fields. "We are pleased, that Amazon as a well-respected company has opted the Krausenhöfe", says Stefan Klingsöhr, managing director Klingsöhr Group. The company develops forward-looking technologies for Amazon in the fields of Machine Learning, Amazon Web Services and Seller Services. The second tenant is Boston Consulting Group (BCG). The Krausenhöfe are now fully let.
The Krausenhöfe, located in Berlin's Schützenstraße, are one of the last available architectural monuments in the centre of Berlin. "The Krausenhöfe are genuinely representative for the companies", explains Mr. Klingsöhr. They are embodied with the architectural tradition of Berlin's business premises and offer a loft character due to ceiling heights of over four meters. The building is currently reconstructed by the Klingsöhr group. The Krausenhöfe are centrally located in the former "Newspaper-Quarter", close to Unter den Linden, Friedrichstraße and the Axel Springer building.
"The whole area around the Krausenhöfe developed excellent and will be gaining importance due to the lettings of Amazon as well as the Boston Consulting Group", asserts Stefan Klingsöhr. So there are numerous residential projects planned in the area. An attractive mixture of commercial and residential arises.
The Krausenhöfe were erected in 1910 and offer a total rental space of 11,500 sqm.
28 November 2013
Stefan Klingsöhr on Bloomberg: "Germany´s Planned Rent Rules Rattle Investors Amid Boom"
Dahlia Fahmy reports at Bloomberg News in her article "Germany´s Planned Rent Rules Rattle Investors Amid Boom" the plans of the German administration on rent regulations and their possible effects on the German residential real estate market. In the article Stefan Klingsöhr, chief executive officer of Klingsoehr Unternehmensgruppe, is quoted saying that he is not going to invest in existing housing anymore. He adds that the ideas proposed by the coalition will result in a climate that will make property owners not want to spend money on renovations. The article further states that the rent cap is counterproductive according to the Bundesbank: instead, market-related incentives should remain in place. Klingsöhr agrees; he adds that the government plans will bring about the exact opposite of what they try to achieve: the housing shortage will increase.
15 November 2013
FAZ: "Overestimated Reserves" by Stefan Klingsöhr
Stefan Klingsöhr shows in a commentary in the FAZ on November 15 2013, that only a quarter of the Berlin office real estate vacancy meets the requirements of the majority of the tenants. Considering, that a certain fluctuation reserve is necessary for a healthy office market, the scenario is even clearer: Especially with large areas above 5,000 sqm the market is almost swept clean. With pictures of vacant offices in mind investors and developers had simply overslept to build commercial real estate in the capital. However, before you can set up modern glass box-office buildings, the developers should focus first on their target group of customers. These are especially innovative companies in the information and communications industry, the preferring former commercial properties and factories in Berlin. Their search profile for suitable office space is completely different than that of traditional companies.
14 November 2013
"What matters is the operator": Interview with Stefan Klingsöhr in medAmbiente
Matthias Erler of medAmbiente spoke in the fourth 2013 edition of the magazine with Stefan Klingsöhr about the financial crisis, its impact on the investment in nursing care facilities as well as the decisive criterion for a successful investment: the operator. In the interview, Klingsöhr explains that a successful investment depends mainly on the operator, besides location, building quality and the competitive. Because its economic profitability determines the long-term return. A problem here, however, is that the German market for nursing homes is highly fragmented. Of the objects that currently are on the market, just a few meet the strict investment criteria of most institutional investors.
22 May 2013
Euro Property: Taking healthcare's pulse by Tim Rohrbach
In a byline-article titled „Taking healthcare's pulse", published in the current issue of the magazine Euro Property, Tim Rohrbach comments on Germany's market for health care real estate. According to Rohrbach, for UK investors, German health care assets may soon become "a patient requiring intensive care". Many of the health care portfolios that were underwritten by UK banks during the boom years of 2006 and 2007 will soon face problems to secure refinance deals. According to Rohrbach, investors need to understand the particularities of the German market and especially of the asset class of health care real estate.
07 May 2013
Klingsöhr sells senior living real estate and operation on behalf of Provinzial insurance
The senior living real estate „Haus am Kurpark" in Unna, North Rhine-Westphalia has been sold to a subsidiary of GBS ambulante Dienste Unna. At the same time the company is taking over the operation of the facility. Seller is Provinzial Lebensversicherung AG. On behalf of Provinzial, Klingsöhr Group is taking care of the day-to-day operation as an interim manager since 2012 and in addition has been instructed with the coordination of a structured sales process. "The subsidiary of GBS has submitted the most attractive offer of all bidders. This concerns both the purchase price and the operating concept", explains Hellmar Hedder, head of Provinzial's real estate sales department.
"Thanks to the transparent and structured processing of data by the Klingsöhr Group it was possible to carry out an organized bidding process and thus achieving a much more attractive sales price", Hedder states. The assisted living facility "Haus am Kurpark" for many years has been operated by a subsidiary of the Workers' Samaritan Federation, but in 2011 had to file for bankruptcy. "Following the bankruptcy of the operating company the most urgent task was to stabilize the operation and to ensure the supply of the residents", explains Stefan Klingsöhr, managing director of Klingsöhr Group. "In the next step, it was important to create transparency for owners, potential new investors and financing banks. This included in particular the analysis of the service and cost structure as well as the examination of the leases of the agreed services", says Klingsöhr. So the residents have been entitled to a very diverging range of services. "Based on this, we optimized the structure of services", asserts Klingsöhr.
15 January 2013
Boston Consulting Group rents floor space at Krausenhöfe Estate
Klingsöhr Group just let 4,000 square metres of office space to Boston Consulting Group (BCG). The premises are located in the Krausenhöfe estate in the borough of Mitte in Berlin. BCG signed a long-term lease over ten years that includes an option for another 1,000 square metres. The corporate consulting firm was advised by Cushman & Wakefield in the context of the lease negotiations. In spring of 2015, BCG will relocate from Dircksenstrasse near Hackescher Markt with its 180 staff. The listed Krausenhöfe estate is currently being revitalised at a cost of approximately 25 million euros. It is slated for completion by the end of 2014. Klingsöhr is responsible for the project development and for the project management.
"At Krausenhöfe, our Berlin office will be housed in a landmark building in a prime downtown location," said Lars-Uwe Luther, a BCG Partner. The historic building is located in the so-called Zeitungsviertel, the former newspaper district of Berlin near Checkpoint Charlie and the Axel Springer publishing house. Alexanderplatz, Potsdamer Platz and Unter den Linden are just minutes away. "More so than other wards, the former newspaper district counts among the up and coming quarters in Berlin, and is rapidly gaining in significance. For instance, roughly 1,000 condominiums were sold in the area during the past twelve months. In this area an attractive mix of commercial and residential use is being created in immediate proximity of the government district," said Stefan Klingsöhr, Managing Partner of the eponymous group of companies.
The Krausenhöfe estate on Schützenstrasse provides a gross lettable area of 11,500 square metres. The complex offers rooms with floor-to-ceiling heights of more than four metres and is representative of Berlin's rich tradition in commercial building architecture. The grand historic building is being redeveloped at great expense and in compliance with protected monument regulations while being fitted with state-of-the-art building system at the same time. "We will realise an innovative and high-end design and workplace concept in the office lofts," said Dr. Mathias Bohge, responsible consultant for the project at BCG. In the process, BCG is supported by project controller AOS Studley and the Düsseldorf-based interior decorator Falkenberg. "Krausenhöfe is one of the last protected monuments that remains available in Berlin-Mitte. We expect to let the remaining 50 percent of the lettable area to other prestigious companies very soon," said Klingsöhr. Owner of the building, which was raised in 1910, is a UK family office.
01 December 2012
Guest contribution from Tim Rohrbach in Immobilien & Finanzierung
The magazine Immobilien & Finanzierung brings a byline-article in issue 23/2012 by Tim Rohrbach about senior living real estate. While the demographic conditions - keyword aging - would suggest that an investment in nursing homes is generally safe, the high complexity makes the investment still risky, argues Rohrbach. If an investment is successful is party affected by the location and the offered facilities of the property, but in a more important way by the quality and image of the operator. Since the market with thousands of service providers is very cluttered, Rohrbach recommends to check the operators as to their experience, credit quality and the qualification of their staff through regular monitoring.
19 October 2012
Süddeutsche Zeitung: "Grey housing shortage attracts investors"
In the Süddeutsche Zeitung, 19.10.2012 Peter Horn reported on the impact of demographic trends on the real estate market. Although the majority of seniors would prefer to live in their own homes, demand increases for special forms of housing such as nursing homes, assisted living, or so-called old housing. In this context, Stefan Klingsöhr is warning, that not every investment in senior living real estate automatically profitable. A common mistake is that investors only inadequately analyse the location. In addition to the demographics, detailed information about the number and quality of competitors as well as information on the income of seniors in the relevant catchment area should be sought. Although many statistics demonstrated that the need for care and nursing homes is expected to increase in the coming years this is not true to the same extent everywhere in Germany. Klingsöhr also points out that besides the credibility of the operator primarily the quality of care is of utmost importance. A good reputation is essential for marketing and ensures the best possible occupancy.
30 June 2012
In the newspaper article "Neue Denkgebäude hinter alten Industriemauern" (new intellectual edifices behind old industrial walls) published on June 30th 2012 in Berlin´s daily newspaper "Der Tagesspiegel", Christian Hunziker wrote about the Krausenhöfe and a former cigarette manufactory located at Greifswalder Straße in Berlin which will be refurbished for internet companies.
The 11,000 sqm of the tenantless building Krausenstraße 38/39 which was built in 1910 and accommodated the former Ufa – headquarter will be refurbished for internet companies by the Klingsöhr Group on behalf of a British private investor. The net building costs for the refurbishment and development of mainly office space will amount to approx. 25 Mio. Euro.
According to Stefan Klingsöhr internet companies in particular are keen to rent office lofts in historic buildings, like the former cigarette manufactory located at Greifswalder Straße for example. Here the refurbishment of the rear building part has already begun, as the office spaces in the front house are fully occupied.
22 June 2012
BERLIN'S OFFICE MARKET CATCHES UP
As Steffen Uttich wrote in the Frankfurter Allgemeine Zeitung (FAZ) on June 22th 2012, the demand for commercial real estate in Berlin is increasing. This demand is largely driven by the creative industry. According to Stefan Klingsöhr, internet companies prefer historic buildings which are refurbished, offer open plan offices and have a modern fit-out. But also real estate in peripheral locations within the circle line of Berlin´s urban railway system are able to show full occupancies. According to Klingsöhr, rents for those locations range from € 12 to € 13 /sqm by now.
04 May 2012
GUEST CONTRIBUTION FROM STEFAN KLINGSÖHR IN GERMANY'S MAJOR DAILY NEWSPAPER
In the guest contribution "Büro-Denkmäler (Listed Office Buildings)", published on May 4th 2012 in the Frankfurter Allgemeine Zeitung (FAZ), Stefan Klingsöhr writes about the increasing demand by investors and tenants for listed office buildings. The pre tax yield of listed office buildings are often twice as high compared to listed residential buildings which have the same tax advantages. At the same time listed office buildings enjoy an enormous demand which leads to a very low vacancy risk. According to Klingsöhr listed office buildings are a suitable investment opportunity for family offices and wealthy private investors.
05 March 2012
NEW BRAND LOGO OF KLINGSÖHR GROUP INTRODUCED, AND NEW WEBSITE LAUNCHED
We are happy to report: It's a done deed! We created a new brand logo along with a new web design for our corporate group, and went live with the new website of Klingsöhr Group today.
02 February 2012
WORK ON SECOND CONSTRUCTION STAGE STARTED AT FACTORY IN PRENZLAUER BERG
On 2 February 2012, construction work started in the second yard of the estate at Greifswalder Strasse 212 to develop another 6,000 sqm. The redevelopment and reinstatement of the former cigarette and textiles factory is slated for completion by February 2013. Go to project »
13 January 2012
HOUSING PORTFOLIO SOLD IN BERLIN-SPANDAU
Klingsöhr Group just sold 300 apartment units in Berlin's borough of Spandau on behalf of a foreign investor. Acting as consultant for the seller, Klingsöhr coordinated and controlled the sales process. The transaction exceeded the seller's profit expectations by far.
1,500 SQM IN RENTAL SPACE ON GREIFSWALDER STRASSE LET TO SEARCHMETRICS
Klingsöhr Group has handed over 1,500 sqm in lettable area at the loft project on Greifswalder Strasse to a new tenant – Searchmetrics. The rental space was custom-developed to meet the tenant requirements, and comes with a separate fitness area for employees of this internationally active software vendor.