10.04.2013 - Munich's boom-time property market
A consortium of mostly German institutional investors led by property manager Patrizia Immobilien is paying 2.45 billion ($3.19 billion) for GBW, a listed portfolio of more than 32,000 apartments in Munich and around Bavaria. Patrizia says the equity investment should initially yield 4% to 4.5%, which is toward the low end for residential property in Germany. But even at these levels, the deal looks good given the strength of Munich's property market. Condominium prices in Munich rose 17% last year, according to Jones Lang LaSalle. And the boom likely has further to run. Munich is already the most densely populated of Germany's major cities, while economic growth is attracting some 30,000 people to the city each year...............................................Full Article: Source
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