Shortage of properties holding market back
In the 1st quarter of 2021, some 46 % of transactions by volume related to properties in the City sub-market. The sale of the “D10 Domkontor” played a role here, sold by Savills Investment Management to Caleus Capital Investors.
Once again, office buildings were the most sought after class of assets, accounting for 60 % of total sales and regaining the top ranking they had ceded to mixed-use real estate in the prior year. The latter comprised 13 % of total trades in the 1st quarter of 2021, moving down to third place. Retail shop properties were just ahead with 14 % of the market volume.
Single property transactions totally dominated the 1st quarter. No portfolios were traded.
Dr. August Oetker Nahrungsmittel sold the “Hamburg Süd House” to Union Investment for over €150m - the only property traded for more than €100m. The most prevalent price category was that between €51m and €100m; 44 % of total trading fell into this category.
Fund managers were the biggest group of buyers (36 %), followed by specialist funds. The most active group of vendors consisted of corporates/owner-occupiers (33 %).
Compared with previous years, international investors barely featured on the Hamburg market in the 1st quarter of 2021 (3 % of the total volume). National buyers were more often successful in the bidding process because they urgently need to invest funds. In addition, being physically close to the market they are better able to judge the local effects of Covid-19 than investors from abroad.
Due to great demand the prime yields on office and logistics properties continued to fall year on year; on office properties yields dropped from 2.80 % to 2.70 %, and on logistics real estate from 4.20 % to 3.90 %. The prime yield on commercial buildings remained stable at 2.70 %.
|Investment market | Hamburg | 2021||Q1|
|Transaction volume [€ millions]||700|
|against prior yr [%]||-28|
|Share of trading in CBD [%]||46|
|Proportion of international investors [%]||0|
|Prime net yield, office [%]||2.70|
|against prior yr [percentage points]||-0.10|
|Prime net yield, commercial buildings [%]||2.70|
|against prior yr [percentage points]||±0.00|
|Prime net yield, logistics properties [%]||3.90|
|against prior yr [percentage points]||-0.30|
|Strongest asset class||Offices|
|Strongest asset class [%]||60|
“Hamburg Süd House”,
|City||Offices||Union Investment.||Dr. August Oetker Nahrungsmittel||> 150|
|“Campus Stapelwerk”, Meiendorfer Strasse 205||Hamburg East||Mixed use||Warburg-HIH Invest||AURELIUS Equity Opportunities||76|
|“Krohnstieg Centre”, Krohnstieg 41-43||Hamburg East||Retail||Hahn Immobilien Beteiligung||HBB Hanseatische Betreuungs- und Beteiligungsgesellschaft||65|
|City||Offices||Caleus Capital Investors||Savills Investment Management||64|
Hohe Bleichen 17
|City||Offices||May & Co. Wohn- und Gewerbebau||RFR Holding||51|