Invest Hamburg 2Q2020

Corona pandemic has not yet affected the investment market


Press release | Hamburg
02.07.2020


The market for investment in commercial properties in Hamburg returned a strong 2nd quarter, closing with a transaction volume of some €2.0bn generated by over 40 trades. Year on year, the result was thus some 85 % higher (€1.1bn, 42 transactions). “Despite the pandemic, the investment market posted the second-highest result on record. Essentially this was because many transactions, portfolio sales and company take-overs that had already reached an advanced stage were finalized in the second quarter,” comments Axel Steinbrinker, managing director of Grossmann & Berger, member of German Property Partners (GPP).
Many investors were keen observers of developments during the 2nd quarter. “The fact that “post-Corona pricing”, with the exception of retail and hotel properties, has proved positive on the whole, is an important message for market players. With peoples’ doubts now fading, increasing numbers of properties will come onto the market after the summer holidays. Considering that it usually takes between four and six months to conclude an agreement, the 4th quarter will be especially brisk,” forecasts Steinbrinker.
 

Market details:

  • The sale of properties such as the “Ericus Contor” and “Neuer Dovenhof” indicates that investors still place their faith in real estate. Because in times of crisis core properties are especially sought-after, the City sub-market accounted for some 41 % of the transaction volume.
     
  • Six transactions for over €100m each comprised the lion’s share of total trading (54 %). Real estate selling for between €50m and €100m followed in second place (21 %).
     
  • Portfolio transactions (consisting of company take-overs, acquisitions of shareholdings and the sale of development portfolios) played an important role, making up some 34 % of the total volume. Properties in this category include the “Quartier am Zeughaus” and “Pentahof”, which Covivio acquired through its takeover of Godewind.
     
  • Accounting for 23 % of trading, mixed-use properties secured second place. Office properties retained the top slot with some 43 % of the market.
     
  • Yields remained practically unchanged but low. How the situation has affected businesses financially will probably not become apparent until the autumn, when it is possible that yields may alter slightly in response to developments on the letting market.

Investment market | Hamburg | 2020 Q1 -2
Transaction volume [€ millions] 2,030
against prior yr [%] +85
Share of trading in CBD [%] 41
Proportion of international investors [%] 39
Prime net yield, office [%] 2.80
against prior yr [percentage points] ±0.00
Prime net yield, commercial buildings [%] 2.70
against prior yr [percentage points] ±0.00
Prime net yield, logistics properties [%] 4.20
against prior yr [percentage points] -0.30
Strongest asset class Offices
Strongest asset class [%] 43
Transaction volume Hamburg 2016-2020 / Q1-2















Selected top transactions | investments in Hamburg | 1st and 2nd quarters 2020
Project/property
Street no.
Sub-market Asset class Buyer/investor Vendor Purchase price*
[approx. €m]
“Johann Kontor”, Klosterwall 6-8 City Mixed use Captiva / HanseMerkur / Aug. Prien Family Office Aug. Prien > 300
“Ericus-Contor”, Ericusspitze 2-4 HafenCity Offices Union Investment. Patrizia 184
“Quartier am Zeughaus”, Christoph-Probst-Weg 26-31,3-4, 1-2 Eppendorf Offices Covivio Godewind 183
“Neuer Dovenhof”
Brandstwiete 1
City Offices Zurich Versicherung (insurance) Swiss Life REIM 153











*The purchase prices stated are based on publicly available data, where none is available an estimate is made; new transactions or those occurring in the quarter dealt with in this report are highlighted.
 

The complete market survey will soon be available and can be downloaded from our Website.

Press contact

Visitenkarte
Corinna Fühner


Bleichenbrücke 9
20354 Hamburg

c.fuehner@grossmann-berger.de

040-350 802 588
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