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BA-CA Real Invest on a spending spree in Germany

  • BA-CA Real Invest acquires top office and retail property in Stuttgart and Hamburg with a total value of EUR 40 million
  • "Real Invest Europe" has been a rip-roaring success from the start: it already has assets of EUR 63 million under management

In March 2007, BA-CA Real Invest was the first company in Austria to launch a second open-ended property fund, "Real Invest Europe", for subscription. As an open-ended public fund pursuant to the Immobilien-Investmentfondsgesetz (Property Investment Fund Act), "Real Invest Europe" is a very sound form of investment without the risk of volatile stock market prices. However, at the same time, investors have the option of investing or withdrawing at any time thanks to the daily calculation of the value prescribed by law. As a result, the new property fund will be able – as expected – to share in the popularity among investors enjoyed by the "Real Invest Austria" fund.

Real Invest Europe will pursue a pan-European investment policy. The fund's investment activity is focused on office and retail properties (commercial buildings and shopping centres) and it only acquires top quality property projects, the majority of which are already complete. In addition to Central Eastern and South Eastern Europe (CEE and SEE countries), the new investment fund also invests in Germany to take advantage of the good market opportunities currently available there. It is there that two top quality properties were acquired recently.

German office and retail properties in top quality locations with top quality tenants
The two, newly acquired properties in Real Invest Europe once again underline the quality of Real Invest's selective acquisition policy: the fund property "Azetekenkontor" in Hamburg is a highly distinctive – architecturally speaking – office building constructed around 1900, offering spacious retail and restaurant areas, which was completely renovated last year with a further two storeys being added in the course of the renovations and is now let in its entirety. The property is located in the smartest area of central Hamburg and benefits from optimal transport links. The location constitutes the natural link between downtown Hamburg and the "Harbour City" and is popular destination for shipping companies as well as for the services sector. The property encompasses a total of 4,054 m² lettable floor space.  The majority of the tenancy agreements are long term and all tenants have opted for additional options for extending their respective tenancy agreements. The property was acquired via KENBO Prime Commercial GmbH & Co KG from Norddeutsche Grundvermögen Bau- und Entwicklungsgesellschaft.

The "Büchsenstraße" office and retail property in Stuttgart was constructed in 1967 and was completely renovated, extended and modernised in 1967. Following this comprehensive remodelling, the building meets the latest requirements and offers ca. 4,200 m² office space and ca. 1,200 m² retail space as well as an underground car park. The property is located on Büchsenstraße, which is the most frequented, top location in the city centre (pedestrian zone), since Büchsenstraße serves as the pedestrian link between the "Stadtmitte" urban railway/metro interchange and Königsstraße, which is Stuttgart's No. 1 shopping street.
New construction in the immediate vicinity of the property is making the site more attractive. The vast majority of the tenancy agreements are long-term in nature. The property was acquired via Development Partner AG, Düsseldorf, one of the leading project developers of downtown commercial properties in Germany.

Real Invest Europe – a rip-roaring success from the start
Karl Derfler, a member of the executive management of BA-CA Real Invest on the subject of the fund's success: "From the beginning, the new Real Invest Europe – like Real Invest Austria – has won the hearts of investors. Because of its conservative investment strategy and its independence from the stock market, investors who wish to accumulate assets over the long-term or who are seeking an investment whose value will remain stable to complement their securities portfolios benefit in particular. Real Invest Europe only invests in good locations, which mean that the properties can be expected to retain their value, while their income streams should be sustained."

The fund's management aims to develop a property portfolio with investments across Europe, which will guarantee a stable return long-term by investing in different locations and types of property and exploiting different market cycles. The principal criterion in selecting the target markets and investment locations is the income and rental development potential of the respective property markets. Real Invest Europe is starting by betting on the advantages of the German property market but SEE/CEE investments will follow.

Real Invest Europe is striving for a target return of between 5 and 6 per cent per annum.
Its current assets under management stand at EUR 63 million after only just over 5 months on the market. The property assets in the fund amount to EUR 41 million. Plans are in place to invest a further EUR 60 million in property by the end of 2007.

Real Invest Austria: a successful market leader
The first Austrian property fund, namely Real Invest Austria, is the No. 1 among Austrian property funds with assets of EUR 636 million under management and is able to come up with a current 1 year fund performance of 5.2 per cent, which represents the highest annual performance ever achieved.

Enquiries:  Bank Austria Creditanstalt Press Office Austria
Tiemon Kiesenhofer, Tel. +43 (0)5 05 05 ext. 52819
E-Mail: tiemon.kiesenhofer@ba-ca.com