According to surveys conducted by the international real estate consultancy Cushman & Wakefield (C&W), a total of 84 portfolio transactions including more than 250 residential units (2012: 75) were conducted in 2013. Although the transaction volume in this segment rose by only 12%, the number of residential units traded increased by 23% from 213,000 to 262,000 due to a number of large-scale transactions. As a result of a strong increase in the average price, the investment volume rose from EUR 10.6bn to EUR 14.7bn, representing an increase of 39%.
Based on the number of units traded and the transaction volume, this represents the best result since the record years prior to the financial crisis seven years ago. The extraordinary results can primarily be attributed to the takeover of GSW by Deutsche Wohnen for approx. EUR 3.3bn, the sale of GWB AG to a consortium headed by Patrizia AG for approx. EUR 2.4bn, and the stock market launch of LEG at a value of approx. EUR 2.3bn, which Cushman & Wakefield also included in the statistics.
“After the somewhat modest revenues in 2009 and 2010, we have observed significantly more movement in the institutional investment market since the start of 2011,” said Boris Schneider, Associate in the Corporate Finance department at C&W Germany. “Although the results for 2012 were good, they were exceeded significantly in 2013, which nobody could have expected at the beginning of the year. Since we do not expect the same level and volume of large-scale transactions in 2014, we forecast a transaction volume of around EUR 10bn for 2014 as a whole.”
Compared to the previous year, the average transaction size once again increased by 200 to a total of 3,100 residential units per transaction. Due to the above-average quality of the housing stock included in the three large-scale transactions quoted, the average purchase price increased by 17% to a record value of EUR 900 per square metre. The average purchase price multiplier recorded in this segment also increased accordingly, by 12%, to 14.3 times the gross rent.