VIB Vermögen AG further expands portfolio

Press releases

  • Purchase of retail park in Neu-Ulm
  • Transfer of fourth MAN service station (Freiburg-Umkirch) to portfolio
  • EUR 22.3 million total investment

Neuburg/Danube, February 18, 2015 – VIB Vermögen AG, a company specialising in commercial real estate management, is continuing on its growth path with the purchase of a retail park in Neu-Ulm, located in Germany's Swabia region, and the transfer to its portfolio of a MAN service station that it has developed itself.

Situated favourably in relation to transportation connections, and within a highly frequented commercial zone at the twin centre of Ulm/Neu-Ulm that straddles two German federal states, the property in Neu-Ulm is 100 % rented to companies with high credit ratings, most of which have already operated for many years at the property. Rental contracts have been newly negotiated for 15-year periods for two thirds of the rental area. The park's remaining areas are also predominantly rented on a long-term basis. Significant parts of the property have been completely modernised and remodelled. The total rental area amounts to 18,740 sqm, and will generate an approximately 7.6 % rental return on a EUR 14.8 million investment.

”Our latest acquisition fully aligns with our strategy. This location is very well established on the market and has a very good visibility in the strong economic region of Southern Germany. Given the long-term rental contracts, this retail park fits ideally into our portfolio,” is how Martin Pfandzelter, VIB Vermögen Managing Board member with responsibility for the real estate area, comments on the company's first purchase in 2015. ”Our portfolio now comprises a total area of around 947,000 sqm. Our extensive network allows us to continue to realise attractive purchases during periods of strong demand for commercial property.”

VIB Vermögen also transferred its fourth MAN service station, located in Freiburg-Umkirch, to its portfolio in early February. VIB Vermögen developed this property it-self. The service station has been generating rental income since February 1, 2015, yielding a 7.4 % rental return. The total investment stands at EUR 7.5 million, and the rental contract carries a duration of 20 years.

Both projects comprise a total volume of EUR 22.3 million, and form part of the in-vestment pipeline that was the basis for issuing the 2014/2016 mandatory convertible bond in December of last year.