VIB Vermögen AG further increases real estate portfolio on group level

VIB Vermögen AG, a company specializing in managing commercial real estate, has further expanded its real estate portfolio in the second half of 2009. The company has acquired four high-margin, newly built properties with a total investment volume of around € 22.5 million, which will generate additional annualized net rental income of around € 1.6 million.

The VIB Group has increased its rental space at a group level by 12,843 m² thanks to the acquisitions it made in October and November 2009. Two specialist store centers in Oberammergau and Freystadt were transferred in this period. In addition, the specialist store center in Simbach, which the company already owned, was completed when the second construction segment was finished. Moreover, a further MAN truck service station in Kirchheim has reinforced the VIB Group’s real estate portfolio since November.

Peter Schropp, the company’s Managing Board member responsible for real estate, believes that VIB Group’s income base has been sustainably strengthened: “All of the properties are already fully let on exceptionally long terms - some have leases running for up to 22 years. In addition, we have only concluded leases with top-quality tenants with excellent credit ratings.” CEO Ludwig Schlosser believes that the use of the VIB Group’s tried and trusted financing strategy also allows high returns and security to be combined: “In terms of tenants, we have a high degree of forecasting security for our income thanks to the long-term leases, excellent tenant credit ratings and low vacancies. At the same time, our financing structures are very solid. This allows us to make highly attractive investments, even in this difficult economic period.” The company's acquisitions are primarily equity financed combined with annuity loans, which are mostly not subject to any covenant agreements.

In total, the VIB Group has thus newly acquired or expanded seven properties in the current fiscal year. For this fiscal year the investment package has thus been concluded. The total investment volume amounted to around € 51.1 million. The properties newly added in 2009 have a total rental area of around 47,400 m² and generate additional annualized net rental income of around € 4.0 million. VIB Group thus records a rental return of approx. 7.9% with the new properties it acquired in 2009. As part of the constant optimization of the group’s portfolio, it also sold a property at the beginning of the year. At present, the company's real estate portfolio thus comprises 85 properties with a rental area of 644,000 m².