GE Expands in Germany and Japan

FRANKFURT-Expanding its holdings on both sides of the globe, GE Real Estate has inked major deals in Europe and Asia. In a $98-million transaction, GE Real Estate Germany has acquired a portfolio of seven mixed-used assets from a private individual. And GE Real Estate in Japan has launched a new business to develop “Ecomagination” condos, in a partnership with Meiho Enterprise Co.

The acquisition in Germany includes office, warehouse, residential and retail properties that are located in Frankfurt, Bremen and Hannover. According to GE, the assets are a mixture of long-term let prime offices and properties where GE Real Estate has identified the opportunity to unlock additional value through its active asset management and refurbishment capabilities. The portfolio is currently 75% occupied, with an average lease length of six years.

The acquisition will help GE Real Estate increase its exposure to the Frankfurt office market, which is predicted to benefit from increased rents and attractive returns. Last year, rents in Frankfurt increased by 7.1%, according to the Office Market Report 2008, to be published by Atisreal, a German commercial property consultant, in February. Atisreal predicts another strong year for German commercial real estate in 2008.