Frankfurt, 1st February 2011 – PAMERA Asset Management has advised its clients on the successful completion of about 38,500 sq.m. of lease agreements throughout 2010. With more than half being new leases, and the remainder lease extensions, PAMERA was able to book a significant increase on the leasing rate of several properties it manages. As of February 2011, PAMERA manages about 485 million euros of real estate assets, consisting of 300,000 sq.m. of lettable space.
PAMERA”s clients number several prestigious domestic and international institutional investors ranging from “opportunistic” to “core” investors. Apart from handling the daily asset management, key responsibilities include the letting and subsequent sale of the properties, as well as refurbishing and repositioning of the assets thanks to PAMERA”s own in-house development division.
“We”re very pleased with how things have gone in our first year – a rump year – in business”, says PAMERA Asset Management CEO Gunther R. Deutsch, adding “We”ve built up our core team, we”ve got a nationwide presence, and we”re finding that the integration of our asset management and development teams is being greeted by lively interest in the market”.
Outlook for 2011
PAMERA is anticipating a further good year on the market for office rentals in 2011. However, according to PAMERA Real Estate Group chairman Christoph Wittkop, “Any measurable decrease in the office vacancy rate will be limited to well-equipped and reasonably-priced properties in good locations – and even then, only when accompanied by pro-active asset management”.
With the continuing “run” on Core properties, PAMERA is noting increasing investor interest in secondary locations. As Wittkop says, “The supply of Core proper-ties is thinning out, which is likely to widen the already noticeable price gap with non-core properties due to the risk profile of most investors. Why not take a look at well-let and well-managed properties in established secondary locations, where the risk-reward relationship is frequently very attractive?”
PAMERA sees little chance of a boom in speculative office projects for 2011, but thinks that those who can get developments off the ground in decent locations are “well-placed for rental and sales”. Given the time lag, the best opportunities are likely to be in modern refurbishment projects, it believes.
As to the approach of the banks in the current year, PAMERA is not expecting any significant change. It expects to see the banks showing slightly more willingness to take risks in financing real estate deals and project developments, while still demanding the same current high level of equity capital from investors. It is likewise not expecting to see any paradigm change when it comes to outsourcing asset management functions. “However, we do see a heightened level of interest on the part of the banks when it comes to clever combinations of sales and/or recapitalisation with professional asset management”, says Wittkop.
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Website PAMERA: www.pamera.de
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