Züblin sells Germany portfolio

"The high demand for office properties in good locations with low vacancy rates is creating a distinct seller's market in Germany," the company wrote in a statement. In this attractive market environment, Züblin has identified "an opportunity to realize value." Colliers International was exclusively mandated with the portfolio sale. The portfolio, which includes properties in Dortmund, Düsseldorf, Hamburg, Munich, Stuttgart and Wiesbaden, among others, has already been analyzed by selected bidders. Specifically, a transaction is currently being negotiated with the aim of concluding it within the next few months, the statement continues.

Züblin Immobilien Holding AG says it expects the sale price to be CHF 13 million higher than the available valuations. A successful sale and net proceeds of approximately CHF 55 million would enable the company to expand its portfolio thereafter, the company said. As of March 31, 2017, the value of the Swiss portfolio (89 percent of which is located in the Zurich region) was 198.5 million. Züblin expects to complete the sale of the German portfolio, which has a balance sheet value of 167.8 million, "in the first half of the 2017/18 financial year", i.e. by the end of September.