Dubai Investment Group Acquires Berlin’s Märkisches Zentrum for AED 380 million

Published June 11th, 2006 - 12:26 GMT

DIG - Real Estate & Hospitality, a subsidiary of the Dubai Investment Group LLC (DIG), the global financial investor of Dubai Holding, today announced the acquisition of Märkisches Zentrum (MZ Centre), a 55,000 square meter suburban shopping centre in Berlin, Germany.

 

The AED 380 million (€88 million) MZ Centre is DIG’s second acquisition in line with its strategy to create a German multi-tenant retail portfolio, focusing on assets that offer long-term revenue streams and value-add asset management opportunities. Financing for the transaction is being provided by Merrill Lynch International.

DIG’s Chief Executive Officer Soud Ba’alawy commented: “The acquisition perfectly complements our existing retail investment, Hansecenter in Rostock, and adds significant momentum to our strategy of building up a presence in the multi-tenant retail market in Germany. MZ Centre also provides crucial shopping and social facilities to the residents of Reinickendorf, which our planned improvement scheme will enhance further.”

Originally developed in the early 1970’s, MZ Centre generates gross annual revenue in excess of AED 34.9 million (€7.4 million).

Elaborating on the significance of the acquisition, Duncan Macaulay, Global Head of Real Estate, DIG - Real Estate & Hospitality, said: “MZ Centre offers many opportunities to improve not only the businesses of existing retailers, but also the shopping experience of local residents. We look forward to actively managing the asset with new customer-driven initiatives.”

The centre, which was extended by 10,000 square meters in 2002, accommodates 120 tenants, with a weighted-average remaining lease term in excess of 5 years.  Anchored by H&M and Woolworths, other well known tenants include McDonalds, Wöhrl, Citibank, Deutsche Bank, T-Punkt, Lidl and REWE.

DIG’s investment and planned improvement program assures the future success of MZ Centre and retailing for the Reinickendorf district of Berlin.

DIG was advised on its acquisition by the London and Berlin offices of Colliers International. The property will be managed for DIG by Donaldson Deutschland.

 

About DIG - Real Estate & Hospitality
DIG - Real Estate & Hospitality, a subsidiary of the Dubai Investment Group LLC (DIG), is a global investor in the real estate and hospitality sectors. Positioning its portfolio through gateway offices in New York, London and Dubai, the organization is led by highly skilled local professionals who identify and realize value creation propositions across the real estate and hospitality industries.

Its philosophy of delivering tangible value to its shareholders, partners and lenders is translated in its distinctive real estate portfolio and track record.

DIG - Real Estate & Hospitality currently manages a portfolio in excess of US $ 7 billion. Recognised for its expertise in complex transactions that require a high degree of specialisation, it is aggressively seeking new business in all the regions in which it is established, Middle East and North Africa, Americas, Europe and Asia.

About Dubai Investment Group (DIG)
DIG is the global financial investor of Dubai Holding.  Headquartered in the Emirate of Dubai and with local offices stretching from New York through London to Kuala Lumpur, DIG focuses on long and short term investments with the potential to deliver exceptional and sustainable performance.

DIG is structured as a conglomerate of investment companies operating around core expertise in the asset classes of Global Securities, Real Estate and Fund Management.  Dubai Investment Group has created and manages a diversified and rapidly expanding portfolio of direct and indirect investments. It focuses on key sectors including Financials, Industrials, Telecommunications and Hotels.


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