PROPERTY MARKET REPORT 2018 BUSINESS PROMOTION

Transcription

1 PROPERTY MARKET REPORT 2018 BUSINESS PROMOTION

2 PROPERTY SUBMARKETS AT A GLANCE OFFICES RETAIL The number of office employees in the city of Hannover rose in 2018 to some 150,000. As a result, over the last five years the number of office jobs has risen by around 15,000, a plus of 11 %. The growing demand for office space is very visible in the office property market. In 2017 turnover of office space amounted to around 145,000 m 2. Office 1 Office space portfolio 2017 in m 2 MF-G* 4.95 m Of which Hannover city 4.48 m Hannover Region stands out as one of Germany s highest turnover retail locations. Estimates for 2018 see retail turnover reaching some 7.85 billion. Hannover s city centre, with its prime locations in the Georgstraße and the Bahnhofstraße, is complemented by retail market centres, shopping centres, district centres and attractive inner cities in the Region. Of which surrounding towns of Garbsen, Laatzen and Langenhagen 0.47 m Retail 2 Office space turnover 2017 in m 2 MF-G* 145,000 City of Hannover 130,000 Surrounding towns of Garbsen, Laatzen and Langenhagen 15,000 Vacancy rate 2017 in m 2 MF-G* 180,000 City of Hannover 150,000 Surrounding towns of Garbsen, Laatzen and Langenhagen 30,000 Vacancy rate 2017 in % 3.6 % City of Hannover 3.3 % Surrounding towns of Garbsen, Laatzen and Langenhagen Prime office rent 2018 in /m 2 MF-G* 6.4 % City centre City centre periphery Average rent 2018 in /m 2 MF-G* City centre City centre periphery 8.60 Net initial yield in prime locations, city centre % * MF-G: Standard method for calculating commercial rental space 1 Source: bulwiengesa AG, Hannover Region surveys; details provided by market players Sales floor Hannover Region in m m Surrounding area 1.15 m Hannover city 0.84 m Of which Hannover city centre (Mitte) 285,000 Retail centrality index 2018 (Germany = 100) Hannover city 122 Region Purchasing power 2018 in 8.29 bn Hannover city 3.84 bn Region 4.45 bn Retail turnover 2018 in 7.85 bn Hannover city 4.14 bn Region (including Hannover city) 3.71 bn Rents 2018 Prime rent city, prime location in /m 2 * 185 Average rent city prime location in /m 2 * 150 Returns 2018 Net initial yield in prime locations 4 % Net initial yield, specialist retail centres 5.8 % * Bahnhofstraße, Große Packhofstraße, Georgstraße 2 Source: retail portfolio surveys on behalf of Hannover Region (data status end 2016); MB research 2018: detail estimates provided by market players.

3 PROPERTY SUBMARKETS AT A GLANCE HOTEL LOGISTICS Tourism is growing in Hannover. The number of overnight stays climbed in 2017 to more than 4 million in the city and the Region. In addition to business and fair guests, the number of city tourists visiting tourist attractions such as the Adventure Zoo and the international fireworks competition in the Royal Gardens of Herrenhausen is also up. This dynamism is reflected in hotel property projects. Today s figures indicate that by 2021 the ten hotels currently being planned and under construction will inject an additional 1,800 new rooms to the market. Another five hotel projects are in the planning phase. Hotel 3 Number of accommodation establishments Hannover 103 Region 238 Hotels Hannover 43 Region 115 Number of beds (all accommodation types) ,871 Hannover 13,755 Region 17,116 Beds in hotels ,533 Hannover 8,806 Region 5,727 Arrivals m Hannover 1.36 m Region 0.84 m Overnights in hotels m Hannover Region is a European logistics hub and a vital, expandable seaport hinterland hub for North German seaports. The regional logistics economy is dominated above all by the demand from trading and industrial enterprises. Recent years have seen many contract logistics providers move to the location, providing logistics services to other companies and demonstrating high levels of in-house added value. Hall space turnover rose significantly during 2017, to around 260,000 m 2. Logistics 4 Logistics area portfolio 2018 in m 2 Of which built after m 0.97 m Logistics space turnover 2017 in m 2 260,000 Prime rent 2018 Prime rent in /m Average rent in /m Net initial yield logistics centres in prime sites % 4 All values with respect to Hannover Region, area portfolio is an extrapolation of the survey of 2016, data as of mid Source: bulwiengesa AG; Details from market players Hannover 1.47 m Region 0.8 m Average duration in days (all types) 1.7 Key indexes, chain hotels Hannover (Fairmas) Occupancy rate, average % Room price, average 2017 in RevPAR (revenue per room) average 2017 in Average initial yield, hotels in % 3 Values are annual average Source: Lower Saxony state statistical office.

4 RESIDENTIAL The residential property market is dominated by regional providers and the demand for private homes. The population growth in the State Capital Hannover and its neighbouring communities is generating high demand for residential properties. Over the last five years (since 2013 to end 2017) the population of Hannover has climbed by approx. 17,300 (plus 3.3 %) to around 541,800. In the same period only some 3,855 new apartments were completed in Hannover such that at the present time there is and will continue to be a considerable demand for new homes. Working together with the housing industry, Hannover city plans to create building rights for 500 to 700 new apartments. Residential 5 Rents 2018 Newbuilds, prime rent in /m Newbuilds, average rent in /m Re-let property, prime rent in /m Re-let property, average rent in /m Home buying 2018 Owner-occupied apartments, newbuilds, prime group in /m 2 5,650 Owner-occupied apartments, newbuilds, average in /m 2 3,950 Multipliers 2018 Apartment blocks/investment properties, newbuilds, prime group Apartment blocks/investment properties, newbuilds, average Apartment blocks/investment properties, stock, prime group Apartment blocks/investment properties, stock, average All values refer to State Capital Hannover. Source: bulwiengesa AG; Details from market players 6 PROPERTY MARKET REPORT 2018

5 CONTENTS FOREWORD Page 5 INVESTMENT MARKET Page 6 OFFICE PROPERTY MARKET Page 16 RETAIL PROPERTY MARKET Page 32 HOTEL PROPERTY MARKET Page 44 LOGISTICS PROPERTY MARKET Page 54 RESIDENTIAL PROPERTY MARKET Page 70 IMPRINT MAPS Page 90 Pages 15, 29, 43, 53, 67, 87 3

6 LIVIN is a residential and commercial building providing 25 apartments in the upper floors and two business units for catering on the ground floor. The building, designed by architects BKSP for developer HOCHTIEF Infrastructure GmbH Building Hannover, is situated directly adjacent to the "new" Leineufer river bank featuring a tree-lined avenue and wide, open stairs down to the river. On the city side is the redesigned Platz am Marstall. 4 PROPERTY MARKET REPORT 2018

7 THE PROPERTY MARKET IN HANNOVER REGION Dear Readers, The property market in Hannover and the Region is moving forward, the cranes are turning, the order books are full with new and innovative projects. The commercial property market in Hannover stands for robust yields on investments with development potential. Hannover city is one of Germany s top shopping addresses. Logistics areas in the Region are enjoying a high level of demand; the office market in the state capital is Germany s largest after the country s seven A-locations. In the city, the number of hotel beds on offer will continue to grow while the city and its environs are seeing strong demand for housing. The same applies to all submarkets: Hannover offers attractive, interesting investment opportunities and is attracting investors seeking to invest in top quality locations. Together with 20 prominent partners from the property industry, the regional business promotion organisation has been collecting core data since 2003 from all relevant submarkets, presenting them in a transparent and interesting fashion while ensuring compliance with the standards of the Gesellschaft für immobilienwirtschaftliche Forschung e.v. (gif property industry research corporation). The results of these collaborative efforts have been reviewed and supplemented by the well-known consultancy firm bulwiengesa AG. Hannover is appreciated as a strong property location within Germany. The property market report provides impressive documentation of the committed and trusting atmosphere of cooperation existing within Hannover s property business community. Ulf-Birger Franz Sabine Tegtmeyer-Dette Head of Business, Transport and Education Department Hannover Region Head of Business and Environment Department, First Town Councillor State Capital Hannover FOREWORD 5

8 Over the rooftops of Hannover: the terrace on top of the multi-storey car park in the Osterstraße provides panoramic views over Hannover s city centre. The GASTFREUNDSCHAFT creative workshop has been offering 600 m 2 of space for workshops and seminars since early m 500,000 Population mid 2018 Employees paying social security contributions, mid PROPERTY MARKET REPORT 2018

9 INVEST- MENT MARKET 698 m Investment volume in commercial property market 2017 Hannover Region is an innovative industrial location, service metropolis and logistics hub for national and international markets. The positive development enjoyed by the regional economy over recent years has created longterm demand for properties in all submarkets. The commercial property market in Hannover has consolidated its position as the top location outside of Germany s seven major A-locations. INVESTMENT MARKET HANNOVER 7

10 FACT CHECK HANNOVER LOCATION Famous brands, a strong business community characterised by strong SMEs and exceptional research organisations are all at home in Lower Saxony State Capital Hannover and the Hannover Region. Some 49,000 business enterprises help make Hannover into Lower Saxony s key economic area. The central jobs location in the Region is State Capital Hannover, with around 320,000 employees, while a further 180,000 are employed in its surrounding areas. The regional unemployment rate in June 2018 was a relatively low 7.5 % (down 0.1 % on June 2017). Almost 500,000 people had jobs in Hannover Region in mid Investment summary The current market continues to be characterised by an ongoing super-cycle within the property sector, primarily pushed by the extended period of low interest. With initial signs of a turnaround now apparent, the question is basically when will the interest structure U-turn happen, what will it look like and what will its impact be. At the same time, the global economy is presenting increasing signs of protectionism and an upturn in barriers to trade. Nonetheless in the last few years, the chain of events such as Brexit or the financial crises within Europe have only had a limited impact on the mood within the property investment markets. A forecast of how long the current dynamic development will continue is, of course, extremely difficult. Above all, Germany s top 7 locations have experienced extreme price rises. For some time now the B-locations have become an interesting investment alternative for a number of investors such that prices have also risen significantly here as well. Foreign investors have now gained confidence in activities outside of the top 7, reflected in continuing demand and the expectation of corresponding impacts on price structures. Transaction volume commercial property market, distribution across submarkets 2013 to Share of transaction volume in % Transaction volume in million Office Logistics and industry Volume in million Retail Hotel Other Source: bulwiengesa AG, data for Hannover Region 8 PROPERTY MARKET REPORT 2018

11 Selected transactions 2017/2018 No. Property name and/or address Quarter Year Vendor Purchaser Investor type Area Office 1 Office and commercial building (Vahrenwalder Straße 11) 2 Office building 1-2-fly (Im Heidekamp 9-11) Q LIST Develop Commercial Q Goldman Sachs International RREEF Investment GmbH Special fund 25,000 m 2 Swiss Life AG Special fund 8,050 m 2 3 Former Postscheckamt (Goseriede) Q Postbank BAUM Unternehmensgruppe/meravis Bauträger GmbH Project developer/ Principal 45,000 m 2 4 Solvay Pharma Office Centre (SPOC)/Landwirtschaftskammer Niedersachsen (LWK) Q Peakside Capital Advisors GmbH Intown Property Management GmbH Asset/fund manager/ private equity 26,300 m 2 5 Tower 31 (Lange Laube) Q Apollo Global Management Intown Property Management GmbH Asset/fund manager/ private equity 23,000 m 2 Business 6 Commercial building (Hildesheimer Straße 41-43) Q Kristensen Properties A/S Projekt Brühlstraße GmbH Project developer/ Principal 3,100 m 2 7 Shopping centre Zuckerfabrik Lehrte Q Rockspring Property Investment Managers LLP Warburg-HIH Invest Real Estate GmbH Special fund 14,500 m 2 8 Commercial building (Georgstraße 7) Q Private Investor Private Investor Private investor 500 m 2 Hotel 9 Intercity Hotel Q bauwo Grundstücksgesellschaft mbh Instutional Investor Institutional investor 228 rooms 10 Arcadia Hotel Hannover-Laatzen Q n/a HR Group Owner-occupier 120 rooms 11 Sheraton Pelikan Hotel Q Peakside Capital Advisors GmbH Intown Property Management GmbH Asset/fund manager/ private equity 147 rooms 12 Star-Inn Hotel Q Hirotani Projektgesellschaft mbh Bavaria Investments GmbH Closed fund 179 rooms Logistics/production 13 Former Lidl central warehouse Wunstorf Q Lidl Stiftung & Co. KG Garbe Industrial Real Estate Project developer 24,000 m 2 14 Sonepar Hannover Q Ernst Russ AG n/a Asset/fund manager/ private equity 13,000 m 2 15 Delticom/Gourmondo Hannover Q n/a Union Investment Open fund 28,400 m 2 16 FIEGE/Rossmann Burgwedel Q FIEGE Gruppe Union Investment Open fund 48,650 m 2 17 Weatherford Continental Europe Center Langenhagen Q Logicor (Blackstone) CIC China Investment Corporation Asset/fund manager/ private equity 37,000 m 2 18 Krauss Maffei Berstorff (An der Breiten Wiese 3-5) Q Hansteen Holdings PLC Blackstone Group (90 %)/ M7 Real Estate (10 %) Asset/fund manager/ private equity 38,900 m 2 All numbers refer to the map on page 15. INVESTMENT MARKET HANNOVER 9

12 Share of transaction volume in million Transaction volume commercial property market Distribution across size classes 2013 to over 100 m m m m 5-10 m up to 5 m 2015 Source: bulwiengesa AG, data for Hannover Region INVESTMENT VOLUME IN THE REGION ROSE DURING 2017 BY 220 MILLION TO ALMOST 700 MILLION. More than 85 % of registered investment volume to date in the current year covers transactions with an order of size between 10 and 50 million. As has been typical in recent years, the start of the year was slow. This also applies to 2018, with investments to date of almost 190 million. Based on experience, however, the second six months will be more dynamic and further transactions from the first half of the year will become known, such that within Hannover Region a transaction result of above 500 million for the commercial property market is also considered realistic for For example, a transaction was reported at the start of Q3 of the sale of an office and retail complex of the LIST Gruppe even before building work had started, with a volume in the region of million. Significant rise in investment volume During 2017 approaching 700 million investments were registered in Hannover Region for commercial properties. The transaction result is higher by some 220 million compared with Once again, the majority of the investments, with a share of almost 73 %, was for transactions in the medium volume categories of between 10 and 50 million. A transaction volume above 50 million was only registered in two cases, both within the Hannover city area: one concerned the sale of a portfolio of residential and commercial properties while the second was a change of ownership of an office complex as part of a portfolio transaction. During the first half of 2018, the importance of transactions in the medium size categories again rose for the Region s commercial property market: Logistics and production properties compete with office properties on the transaction markets Hannover is a crucial office location and this asset class has a long tradition in dominating the Region s investment activities. Having said that, some shifts have been identified: During 2017: The transaction result for office and commercial properties achieved a figure of some 270 million, a clear increase year-on-year. Industrial and logistics properties registered investments of over 210 million last year, and hence represented 31 % of the overall transaction volume, coming second. The run on logistics properties observed during the first two quarters of the year continued during the second six months. Almost a quarter of all investments in the Region during the past year, at just over 125 million, was in 10 PROPERTY MARKET REPORT 2018

13 other property categories, in particular residential portfolios. Hotels achieved a transaction result of almost 60 million. Retail properties recorded an overall investment of just over 33 million, representing a relatively weak transaction result. The first six months of 2018 Industry and logistics properties reached a registered 61 million, making this the category with the highest transaction volume, followed by office and commercial properties in which almost 52 million has been invested thus far. The transaction result for retail properties to date in the year is almost 32 million, about even with last year s figure. The hotel sector has also reported activity in the transaction market. In year-on-year terms, the investment activities for the other property categories are quite low at almost 30 million. Trading with major residential portfolios could, however, quickly change this picture. International investors up their presence in the Region s core markets While international buyers were still reticent during 2016 within Hannover city, interest picked up in Some 18 % of the registered transaction volume of greater than 500 million, around 88 million, was invested by international Origin of capital in the commercial property market 2017 Assets/fund management/private equity Special funds Open funds Project development/principal Insurance/pension fund Buyer type Immobilien AG/REITT Closed funds Private Open/state Owner-occupied/industry Other Of which foreign investors Transaction volumes in million Buyer Vendor Source: bulwiengesa AG/data for Hannover Region INVESTMENT MARKET HANNOVER 11

14 investors. In the Region, the share of foreign capital was just over 25 % (around 44 million), down on The share of international vendors in State Capital Hannover was very low during 2017 at some 2 %. In the surrounding areas, the figure was actually 30 %, above that of buyers. Irrespective of nationality, the main players amongst both buyers and vendors were asset and fund managers as well as private equity, whereby the share of overall transaction volume in the Region for both buyers and vendors was of the order of 40 %. Outlook: yields still under pressure The current market situation is one dominated by a dearth of offers. Many potential buyers are faced with just a limited number of possible properties for sale assuming the market has any at all. Under these conditions there are no reasons why the buoyant investment market in Hannover won t continue. With respect to the interest rate changes announced by the European Central Bank, and reflecting the already very low levels of net initial yield, plus the multipliers in almost all asset classes, a further significant compression of yields is considered to be most unlikely. As a consequence, yields in Hannover, and also on most other markets, are expected only to soften marginally up until the end of Levels of around 4.3 % in central office locations and 4 % in the retail sector are thought to be the lowest threshold. Logistics projects will trend towards 5.1 %, whereby bearing in mind the massive market dynamism in this sector even lower levels with a 4 before the decimal point are considered possible and the years thereafter are forecast to continue at a similar level. The yield might also possibly climb slightly without any major changes compared with today s level. Net initial yields in prime locations in 2013 to 2018 Commercial property market Hannover 7 6,5 6 Net initial yield in % 5,5 5 4,5 4 3, Logistics Hotel Office Retail Residential Source: bulwiengesa AG: in the case of yield spreads the respective lower end is given. 12 PROPERTY MARKET REPORT 2018

15 The new Campus of the SAE institute opened for the start of the 2017 semester at the MARQ (a STRABAG Real Estate property development). The private college boasts some 1,500 m 2 of space to offer ideal conditions for further and continuing education in the audio-visual media sector. The facilities include five control rooms and three recording studios as well as a green screen studio for professional creation of picture, music, voice and sound recordings. INVESTMENT MARKET HANNOVER 13

16 The end of October 2017 saw the re-opening of the Lower Saxony Landtag parliament building complex after a three-year conversion and refurbishment phase. The plenary hall building, built in 1962 on plans by architect Dieter Oesterlen, was reconfigured. The characteristic listed concrete facade was retained for the most part. 14 PROPERTY MARKET REPORT 2018

17 B3 Großburgwedel Selected investment market projects A Langenhagen EN B 522 A 37 B 443 A2 E 30 2 M it te lla ndkanal 11 B6 B3 1 B 441 SEELZE HANNOVER 12 3 A B 65 B 443 B 65 B6 EHRDEN 10 B 217 B 443 B3 Lein e A 37 0 Laatzen Hotel Office WENNIGSEN 1 Office and commercial building/ Vahrenwalder Straße 2 Office building 1-2-fly 3 Former Postscheckamt 4 Solvay Pharma Office Centre/ Landwirtschaftskammer Niedersachsen B6 Intercity Hotel 2 3 km N Key * outside of map area Arcadia Hotel Hannover-Laatzen PATTENSEN Sheraton Pelikan Hotel 12 B3 B 217 Airport Exhibition grounds SARSTEDT Star-Inn Hotel Main station/main line trains B 494 Logistics Tower 31 Tram 13 SPRINGE Commerce 6 14 Commercial building/hildesheimer Straße Lei n e 5 9 B Former Lidl central warehouse Wunstorf* E 45 S-train A7 City boundary Sonepar Hannover 15 Delticom/Gourmondo Hannover FIEGE/Rossmann Burgwedel* B6 7 Shopping centre Zuckerfabrik Lehrte 16 8 Commercial building/georgstraße 17 Weatherford Continental Europe Center Langenhagen 18 Krauss Maffei Berstorff HILDESH B1 B3 B 243 INVESTMENT MARKET HANNOVER 15

18 Glazed facade: Hannover s power utility enercity is planning a newbuild directly on the River Ihme. Based on designs by Stuttgart architect s office haascookzemmrich Studio 2050, an office building for around 550 persons is planned for completion by The scheme includes a large atrium and a covered inner courtyard with connecting bridges to the various parts of the building /m 2 145,000 m 2 Prime rent 2018 Space turnover PROPERTY MARKET REPORT 2018

19 OFFICE PROPERTY MARKET 4.3 % Net initial yield 2018 Hannover is the largest and also one of the most dynamic locations in Germany s property market after the country s seven A-locations. In the last five years some 190,000 m 2 office space has been built new and a further 170,000 m 2 refurbished. A further minimum 190,000 m 2 will come online by 2020 (of which 50,000 m 2 after refurbishment). 17

20 FACT CHECK OFFICE MARKET Includes Hannover city, Garbsen, Laatzen and Langenhagen. Average annual turnover has been 122,000 m 2 since million m 2 office space (of which some 4.48 million m 2 in Hannover) Largest portfolio after Germany s seven A-locations. The investment risk is low due to the relatively low vacancy rates as well as thanks to the high level of market transparency: the net initial yield was 4.3 % in ,000 office employees in Hannover (2018) Over the last five years the number of office jobs has risen by around 15,000, or 11 %. Since 2013, the office property market in Hannover has seen a total of 610,000 m 2 office space turnover. In 2017 the vacancy rate in Hannover was a low 3.3 %, whereas the average for Germany s A-locations was 4.5 % and for B-locations 4.6 %. Investment transaction volume reached approx. 270 million (2017). Office space turnover 2013 to 2017 Space turnover in thousand m 2 MF-G Office property turnover increased noticeably in 2017 The property report project group Hannover identified some 145,000 m 2 newly rented owner-occupied office areas in Hannover, Garbsen, Laatzen and Langenhagen during Turnover climbed year-on-year by 25,000 m 2 to 145,000 m 2 (plus 21 %) and is approx. 20 % above the average for the years 2013 through 2017 (122,000 m 2 ). City periphery and arterial roads report strong turnovers Most new contracts for office properties during 2017 were in Hannover city: at just under 50,000 m 2, this figure represents one third of office space turnover. Prime rent climbs in city and on arterial roads Prime rent climbed slightly and reached 15.30/m 2 at the end of Noticeable here is the development of rents on the city periphery and the main arterial roads. Over the last two years prime rent climbed up to 13.50, in the years to date the rent was considerably lower at Rent, Region Rent, Hannover Owner-occupied, Region Owner-occupied, Hannover Source: Hannover Region surveys, details provided by market players. 18 PROPERTY MARKET REPORT 2018

21 The "Anna" office building forms, together with the "Dreiklang" residential project opposite, the gateway into the completely transformed grounds of the former Südbahnhof goods station. The developer, Aurelis Real Estate, plans to install a day-care centre on the ground floor. Directly opposite the planned newbuild for the Siemens subsidiary, another large new office building is being erected in Laatzen. Valentin Klein Immobilien of Hannover is working with architects F+R BDA, also of Hannover, to construct an office building offering approx. 6,500 m 2 space on the site directly adjacent to the Park der Sinne. OFFICE MARKETS IN NEIGHBOURING TOWNS BENEFIT FROM HANNOVER S HIGH LEVEL OF AT TRAC TION. OFFICE PROPERTY MARKET 19

22 The Lower Saxony Ärztekammer (medical association) is planning a representative newbuild for its Lower Saxony state offices designed by Berlin architects Grüntuch Ernst (nonbinding draft). The building of up to 10 storeys is planned with a staggered roof line forming greened terraces along the Berliner Allee road, and glazing to create a transparent frontage. The old structure is currently being demolished with building work scheduled to commence in January PROPERTY MARKET REPORT 2018

23 Office space turnover based on size categories % 6 % 9 % 12 % 52 % 18 % Up to 300 m m m m m and more m 2 Source: Hannover Region surveys, details provided by market players, with respect to number of rental contracts (n = 145) Public sector and industry dominate deals in 2017 The biggest deal of the last 12 months comprised some 22,000 m 2 space in a rental contract for an office complex on the Joachimstraße: in a property previously used by the Deutsche Bahn AG, the building is to be refurbished and used by Hannover city s department for juvenile and family affairs on a long-term lease. Second in the ranking is a project in the Lindener Hafen area: automotive supplier WABCO is building the approx. 11,500 m 2 WABCO Engineering Innovation Centre for its own use. Work started in Laatzen on the newbuild of the Siemens subsidiary. By 2020 the company will re-locate approx. 750 jobs from its old site on the Hildesheimer Straße to a new, modern office complex offering around 10,000 m 2 of space on the Karlsruher Straße. Positive prospects for 2018 In mid-2018, space turnover had already reached some 85,000 m 2. Special highlights here are two major rental contracts at the EXPO Park/Kattenbookstrift in Hannover s south (a 10,000 m 2 rental by the state of Lower Saxony and 14,000 m 2 by FinanzIT). Hannover market players anticipate, based on projects either under construction or subject to completion, that prime rents in the city will climb during 2018 to 15.50/m 2. The fact that significantly higher prime rents not were achieved in the past was due to a lack of offers of high-quality areas in central office locations. Prime rents 6 were actually in part significantly higher during 2017 and also until mid-2018 in the city centre area, with up to 18/m 2 for exceptional newbuilds and high-quality refurbishments. Exceptional properties can also achieve rents of up to 14/m 2 at the city periphery and on arterial rods. 6 The prime rent achieved refers to the highest registered nominal net basic rent for a rental contract concluded during the respective report period, irrespective of the local submarket, the quality or size of the rented area. In this case the data refers not only to rental contracts but also rental contract extensions which are not included in the rental turnover. OFFICE PROPERTY MARKET 21

24 Office area turnover according to location 2017 Office property investments in demand 11 % In recent years Hannover has evolved into one of the most 2 % sought-after German locations after the Top 7. Factors including the low market risk, stable developments 5 % and good growth prospects mean Hannover is now an interesting option for investors from both Germany and 32 % abroad saw office market transactions in Hannover 7 % Region achieve a volume of approx. 270 million. The net initial yield fell to 4.3 %. 14 % 29 % City Hannover, other locations Roderbruch/Karl-Wiechert-Allee Surrounding area City periphery/arterial roads Expo-Park Lahe Source: Hannover Region surveys, data provided by market players, with respect to total areas in m 2 Net initial yield in prime locations 2013 to 2018 Office rents in Hannover 2013 to 2018* ,6 15 5, ,6 4,3 4 3,6 3, in % in /m 2 MF-G Net initial yield, prime location, office Source: bulwiengesa AG, in the case of yield spreads the respective lower end is given. Prime rent, city Prime rent, city periphery Average rent, city Average rent, city periphery Source: bulwiengesa AG, Hannover Region surveys, data provided by market players * The values given for 2018 are based on data provided by market players on developments in the first two quarters PROPERTY MARKET REPORT 2018

25 Moving within Laatzen: the Siemens subsidiary, with approx. 750 employees, is scheduled to move into a newbuild on Erich-Parnitz-Straße by mid The building has an H-floor plan with two five-storey office tracts connected by a narrow bridge section. The floor plan is basically square, the total floor area is some 10,000 m 2. Gateway to the town: the first building phase of the "City Gate Nord" on the Vahrenwalder Straße was completed in June 2018, and handed over to Vodafone Deutschland as main tenant. The building provides around 9,000 m 2 space and facilities for more than 600 employees. The modern DGNB-Gold-certified office building features an elegant brick facade typical of North Germany s brick architecture. OFFICE PROPERTY MARKET 23

26 The last parts of the historic Hall 96 on the Hanomag grounds have been gutted and converted into loft flats and offices, without the building losing its industrial look/feel. The bauwo Grundstücksgesellschaft is planning to erect an approx. 20,000 m 2 total floor space office building on the Vahrenwalder Straße. The project is on a former car sales showroom site, directly adjacent to the Brinkhafen business park. VACANCY RATE IN HANNOVER DURING 2017 WAS 3.3 %, CONSIDERABLY LOWER THAN THE AVERAGE OF A-LOCATIONS AT 5.5 %. 24 PROPERTY MARKET REPORT 2018

27 Vacancies continue to fall Despite many completions during the last five years, the Office vacancy rate 2013 to 2018* vacancy rate has not increased; new areas entering the market are being fully absorbed. The vacancy rate 7 closed % 2017 at 3.5 %, 100 base points lower than Taken absolutely, vacancies available for rent in Hannover have reduced by 55,000 m 2 to 150,000 m 2. Market players anticipate that the vacancy rate will continue to fall during 2018 and settle at a level just above 3 %. This is the lowest vacancy rate experienced by Hannover since market reporting began. Dynamic completion volumes During the last five years, around 190,000 m 2 office space has been erected new and a further 170,000 m 2 thoroughly Vacancies in thousand m 2 MF-G % 5 % 4 % 3 % 2 % Vacancy rate in % refurbished. By 2020 a further 190,000 m 2 are anticipated (of which 50,000 m 2 via refurbishments). 0 1 % 7 Estimate is based on an updated extrapolation of a full survey of office space inventory and vacancies by bulwiengesa AG, end 2015/early The forecast and model calculations of bulwiengesa AG are based on the total inventory surveys of 2009, 2012 and Vacancies, Hannover Vacancies, Region* Vacancy rate, Hannover Vacancy rate, Region * Value for Region (Garbsen, Laatzen, Langenhagen) The vacancy figures are based on office space full surveys in 2008, 2012 and 2015 for the Hannover market area and extrapolated in the following years. For the surrounding towns, the survey is based on a specific vacancy rate for Source: bulwiengesa AG, Hannover Region surveys: details provided by market players. Completions in office market 2013 to in thousand m 2 MF-G A FURTHER 190,000 M 2 OFFICE SPACE FROM NEWBUILDS OR REFURBISHMENTS WILL ENTER THE MARKET BY * 2019* 2020* Newbuild completions Hannover Newbuild completions Region Refurbishments Hannover * Based on the spring forecast of bulwiengesa AG; Hannover Region survey, details provided by market players; data status Q3/2018 OFFICE PROPERTY MARKET 25

28 Selected office property projects No. Property Address Investor, developer or user Area in m 2 MF-G Status completion New builds Completions 1 WABCO Engineering Innovation Center (2. BA) Am Lindener Hafen 21 WABCO Fahrzeugsysteme GmbH 11,500 m 2 office/laboratory Owner-occupation Q3/ City Gate Nord (1. BA/Vodafone) Vahrenwalder Straße 236 Projektentwicklung HRG & Delta Bau GmbH & Co. KG 9,000 m 2 office Q2/ Pod BC Podbielskistraße 382 STRABAG Real Estate GmbH 6,500 m 2 office Q4/ Prinzenareal Prinzenstraße VGH Projekt GmbH & Co. Prinzenareal KG 6,330 m 2 office Q3/ Telekom AG Elfriede-Paul-Allee 15 DIBAG Industriebau AG 5,500 m 2 office Q3/ MARQ Marstall Quarre Am Marstall STRABAG Real Estate GmbH 3,020 m 2 office 520 m 2 gastronomy 700 m 2 residential Q1/ Hüttenes-Albertus (extension) Hansastraße 1 Hüttenes Albertus Chemische Werke GmbH 2,500 m 2 office/laboratory Owner-occupation Q4/ Office project Planetencenter Planetenring 39 41, Garbsen Rahlfs Immobiliengruppe 2,450 m 2 office/surgery Q4/ Schindler Boulevard der EU 23 Nebel Immobilien 2,000 m 2 office Q3/ B6 Office Bremer Straße 29, Garbsen Langwost Unternehmensgruppe 1,700 m 2 office (in part owner-occupation) Q3/ LIVIN Am Marstall/ Am Hohen Ufer 5 a/b HOCHTIEF Infrastructure GmbH Building Hannover, hanova 2,600 m 2 residential 920 m 2 gastronomy 750 m 2 office Q2/2018 Under construction/in preparation 12 Continental AG Headquarters Hans-Böckler-Allee 30/49 Continental AG 44,400 m 2 GFA office Owner-occupation Deutsche Bahn AG Rundestraße/Hamburger Allee (ehem. ZOB) Savills KÖLBL KRUSE GmbH 25,500 m 2 office Q2/ Office and commercial building Vahrenwald Vahrenwalder/ Ecke Philipsbornstraße LIST Develop Commercial GmbH & Co. KG 25,000 m 2 GFA office/retail/ gastronomy/services/hotel Q2/ Admin building Public Order Schützenplatz 1 hanova 19,000 m 2 office Q1/ Siemens AG Erich-Panitz-Straße/ Karlsruher Straße, Laatzen Siemens Real Estate 10,000 m 2 GFA office Owner-occupation Q3/ Office building at Park der Sinne Senefelderstraße, Laatzen VALENTIN KLEIN Immobilien GmbH & Co. KG 6,500 m 2 office Q3/ DB Netz AG (extension) Lindemannallee 3 DB Netz AG 2,500 m 2 office Q1/ State office of health (extension) Roesebeckstraße Land Niedersachsen 1,100 m 2 office/laboratory Owner-occupation Q2/ PROPERTY MARKET REPORT 2018

29 No. Property Address Investor, developer or user Area in m 2 MF-G Status completion Detail planning 20 Sky City Hannover Airport Flughafenstraße Flughafen Hannover- Langenhagen GmbH 25,000 m 2 GFA office 21 Business Park Hannover-Nord Vahrenwalder Straße 321 bauwo Grundstücksgesellschaft mbh 20,000 m 2 GFA office Enercity headquarters Glockseestraße 33 enercity AG 20,000 m 2 GFA office Owner-occupation Office ensemble Hemmingen B3/Ecke Weetzener Landstraße, Hemmingen FIH Fürst Immobilien Hannover 18,000 m 2 GFA office/surgery/ retail gastronomy Forensic institute Waterlooplatz 11 Land Niedersachsen 10,1000 m 2 GFA office Owner-occupation 25 Medical building Berliner Allee 20 Ärztekammer Niedersachsen 10,000 m 2 office Owner-occupation 26 Immigration authority Akazienstraße Region Hannover 5,000 m 2 office Owner-occupation Businesspark Hannover-Lahe Kirchhorster Straße 33/ Ecke Im Klingenkampe 46 BBH Immobilien GmbH 3,700 m 2 office Office and residential building Steinbruchsfeld Willi-Blume-Allee HOCHTIEF Infrastructure GmbH Building Hannover 4,800 m 2 residential 1,900 m 2 office/surgery 790 m 2 gastronomy/retail Q4/2019 Medium-term planning 29 Office project WA27 Weltausstellungsallee Delta HRG 22,000 m 2 office/hotel 2021/ Office project former main goods station Am Weidendamm Aurelis Real Estate GmbH 12,000 m 2 GFA 2021/ City Gate Nord (2nd BP) Vahrenwalder Straße 236 Projektentwicklung HRG & Delta Bau GmbH & Co. KG 12,000 m 2 office/retail 32 Office project VS319 Vahrenwalder Straße 319 Delta HRG 15,000 m 2 office/hotel 33 Office project MS4 Mailänder Straße Delta HRG 11,000 m 2 office/hotel 34 Ratsquartier Bruchmeisterallee BAUM Unternehmensgruppe 12,000 m 2 GFA office 2019/ Office project KWA62 Karl-Wiechert-Allee 62 Delta HRG 9,000 m 2 office/hotel 36 Office project Laatzen Erich-Panitz-Straße/ Karlsruher Straße, Laatzen phoenix Holding GmbH 10,000 m 2 GFA office 37 Office project "Anna" Anna-Zammert-Straße Aurelis Real Estate GmbH 4,500 m 2 GFA office Q1/ Office high-rise Bischofshol Bischofsholer Damm 87 HELMA 2,200 m 2 GFA office/surgery OFFICE PROPERTY MARKET 27

30 No. Property Address Investor, developer or user Area in m 2 MF-G Status completion Refurbishments Completions 39 ÜSTRA headquarters Am Hohen Ufer 6 ÜSTRA Hannoversche 5,700 m 2 office Q3/2017 Verkehrsbetriebe AG Owner-occupation 40 Rathaus Kontor Theodor-Lessing-Platz BAUM Unternehmensgruppe 4,200 m 2 office Q4/ /Ebhardtstraße 1 41 KRH Training academy Schützenallee 5 meravis Bauträger GmbH 3,700 m 2 office/seminar Q1/ Office and commercial Osterstraße 63 privater Investor 3,000 m 2 office Q1/2018 building 500 m 2 retail 43 Office building Siemensstraße 10 Schramm & Schön 2,500 m 2 office Q3/ Danish Pavillion Boulevard der EU 7 Grobe architect s office 2,000 m 2 office Owner-occupation Q3/2018 Under construction/in preparation 45 Office lofts Drostestraße 14/16 BAUM Unternehmensgruppe 4,000 m 2 GFA office 2018 Detail planning 46 Admin building Joachimstraße 47 State criminal police agency 48 Office/commercial building Joachimstraße 8 JP Morgan 21,000 m /2021 Waterlooplatz 11 State of Lower Saxony 19,500 m 2 GFA office 2021 Owner-occupation Am Klagesmarkt 12 BAUM Unternehmensgruppe 6,500 m 2 GFA hotel/office/ Q2/2020 gastronomy Medium-term planning 49 Former Postbank-Areal Goseriede, Brüderstraße BAUM Unternehmensgruppe, meravis Bauträger GmbH 45,000 m 2 office ( currently) 19,000 m 2 plot Including residential/ hotel planned 28 PROPERTY MARKET REPORT 2018

31 Großburgwedel A 352 Selected office projects Newbuilds 1 20 Langenhagen Langenhagen-Centre B 522 Garbsen Centre E 30 Lahe 7 Vahrenwalder-Straße ÜSTRA headquarters Rathaus Kontor City Gate Nord 3 Pod BC 41 KRH Bildungsakademie 4 Prinzenareal 42 Office and commercial building Osterstraße 5 Telekom AG 43 Office building Siemensstraße 6 MARQ Marstall Quarre 44 Danish pavilion 45 Office lofts Drostestraße Office project Planetencenter 46 Administration building Joachimstraße Lower Saxony State criminal police agency B A WABCO Engineering Innovation Center 2 7 Garbsen Refurbishments Hüttenes-Albertus (extension) A 37 Schindler B6 Office Office and Commercial building am Klagesmarkt LIVIN Former Postbank-Areal Continental AG HQ 13 Deutsche Bahn AG 14 Office and commercial building Vahrenwald 15 Administration building Public Order 32 2 M ittellandkanal 3 31 Podbielskistraße B6 B B City Hans-Böckler-Allee Hildesheimer Straße Siemens AG 17 Office building am Park der Sinne 18 DB Netz AG (extension) 19 Landesgesundheitsamt (extension) 20 SkyCity Hannover Airport 21 Business Park Hannover-Nord 22 enercity headquarters 23 Office ensemble Hemmingen 24 Forensic Institute 25 Ärztekammer Niedersachsen 26 Immigration authority 27 Business park Hannover-Lahe 28 Office and residential building Steinbruchsfeld B 65 B6 41 B 217 Expo-Park 23 Laatzen Centre 36 B3 Lein e OFFICE PROPERTY MARKET 1 Key Airport Exhibition grounds Main station main line trains Tram S-train City boundary B 65 Office project WA Office project Hauptgüterbahnhof 31 City Gate Nord 32 Office project VS Office project MS4 34 Ratsquartier 35 Office project KWA62 36 Office project Laatzen 37 Office project "Anna" 38 Office high-rise Bischofshol B 443 Sehnde B Laatzen 0 PROPERTY MARKET REPORT 2018 Mid-term planning Concrete Planning City centre periphery Karl-Wiechert-Allee 13 Under construction/in preparation 28 HANNOVER 45 Completions 0,5 1 1,5 km N OFFICE PROPERTY MARKET B

32 Subzones of Hannover s office property market (see also map of office projects on page 29): The Hannover office market, comprising approx million m 2 office space (MF-G), comprises the city of Hannover and the neighbouring cities of Garbsen, Langenhagen and Laatzen which border the state capital directly to the north and south and to which it has close functional ties. Map Subzones location Office space in m 2 MF-G Number of office buildings Of which > 10,000 m 2 City centre: bordered by the city ring road. This area comprises Georgstraße, Georgsplatz, Raschplatz, Friedrichswall, Aegidientorplatz and Schiffgraben. City centre peripheral locations and arterial roads: High-quality office locations are situated in the north and southeast of the city centre with the main traffic axes comprising Vahrenwalder Straße in the north, Podbielskistraße in the northeast, Marienstraße/Hans-Böckler-Allee in the east and Hildesheimer Straße in the south and extends west towards the HANOMAG area 1,18 m ,88 m City periphery 584, Podbielskistraße 546, Vahrenwalder Straße 343, Hildesheimer Straße 238, Hans-Böckler-Allee 165, Office centre Karl-Wiechert-Allee: With direct access to the expressway this location hosts the large sites and facilities of the Hannover Medical School and the adjacent Medical Park, and in particular owner-occupied office complexes for groups involved in the finance, insurance and tourism sectors. EXPO Park: High-quality office buildings oriented towards IT, design and media, partially comprising some of the original buildings and open spaces constructed for the EXPO 2000 World Exposition. The buildings constructed on the nearby Kronsberg (Kattenbrookstrift) are exceptional examples of modern architecture. Office centre Lahe: Location in the north-east of Hannover boasting excellent transport connections to the A 2 and to the tram system. A number of rezoning and restructuring activities offer considerable scope for further developing the potential at this location. City of Langenhagen: Office buildings concentrated in the town centre and around the LRT station Langenhagen-Mitte. Also, excellent transport connections to the motorways and the airport. Additional office properties in Godshorn and Airport business parks. Stadt Garbsen: Office buildings concentrated around the centre of the city and the new Mechanical Engineering Campus of Leibniz University. Excellent transport connections including light rail transit, and direct proximity to the A 2 and B 6 roads. City of Laatzen: Office buildings concentrated around the centre of Laatzen. Directly adjacent to the Hannover Exhibition Grounds and the A 37/A 7 motorways, excellent local public transport connections. 322, , , , , , OFFICE PROPERTY MARKET 31

33 Weitz is one of Hannover s traditional shops: it re-opened in October 2017 following a brief conversion phase. The family-run outlet offers "the experience of kitchen culture" on 570 m 2 of sales floor. The range of porcelain and household goods has been complemented by an event area on which customers can experience products in use. 2.1 m m 2 185/m 2 Sales floor/retail Prime rent PROPERTY MARKET REPORT 2018

34 RETAIL PROPERTY MARKET 4 % Net initial yield 2018 Hannover and its environs offer many attractive retail opportunities. The Georgstraße in Hannover is one of Germany s strongest retail locations. Hannover Region itself also offers many attractive shopping opportunities, attracting shoppers from beyond the Region s borders. 33

35 RETAIL FACT CHECK Hannover s Georgstraße has been ranked amongst Germany s ten best shopping streets for many years now and is one of the nation s top locations in terms of pedestrian frequency and prime rent. The centrality of the city of Hannover and the Region is high, with a catchment area stretching far beyond Lower Saxony s border in the west through to the state of North-Rhine Westphalia. Many communities in the Region offer attractive inner cities and district centres which customers find very attractive. The sales floor total in Hannover Region is approx. 2.1 million m 2, of which some 285,000 m 2 are located in Hannover s city centre. The communities of Laatzen, Langenhagen, Isernhagen-Altwarmbüchen and Garbsen all offer strong shopping centres and retail centres and are successful at a supra-regional level. In 2017 retail properties worth around 33 million were transacted in the Region. The Region is one of the country s highest turnover retail locations Despite the increasing share now enjoyed by e-commerce in retail sales in Germany, local retail turnovers have remained stable or have risen slightly. According to MB-Research, retail sales in Hannover Region topped 7.85 billion during Hannover Region continues to rank amongst those Germany s municipalities and cities with the highest turnover levels. Exceptional centrality Hannover is a retail location which is very much in demand. Compared with cities of a similar size, such as Bremen, Dortmund, Nuremberg, Essen and Leipzig, the rents achieved in Hannover s inner-city shopping streets are much higher. Hannover boasts excellent centrality and actually beats metropolises such as Berlin, Hamburg and Munich in this regard. Retail indexes Germany = Turnover index, Hannover Turnover index, Region Centrality index, Hannover Centrality index, Region Purchasing power index, Hannover Purchasing power index, Region Source: MB-Research PROPERTY MARKET REPORT 2018

36 Purchasing power and turnover In m 9,000 8,000 7,000 6,000 5,000 4,000 3,000 Turnover Hannover Turnover Region Purchasing power relevant to retail, Hannover Purchasing power relevant to retail, Region Source: MB-Research 2,000 1, Region offers over 2.1 million m 2 sales floor The total sales floor for the Hannover Region as a whole is estimated at 2.1 million m 2. The sales floor available in State Capital Hannover is approx. 885,000 m 2. Overall, the city centre (district of Mitte) offers approx. 285,000 m 2 sales floor. 8 The top four prime sites (Bahnhofstraße, Georgstraße, Große Packhofstraße and Karmarschstraße) have a combined sales floor of approx. 190,000 m 2. 8 Data for Hannover Region, acquired as part of the development of the Regional Retail Concept. Data status 2016 Area turnover in the city up again in 2018 Hannover s prime locations continue to be very interesting for many retailers vying for the few areas available in the prime locations. Over the last five years ( ) the average area turnover in Hannover city amounted to some 5,200 m 2. During the course of 2015 the city of Hannover saw about 8,700 m 2 sales floor marketed. In 2016 turnovers fell to approx m 2, while in 2017 area turnover achieved a figure of only approx m 2. During the first six months of 2018 area turnovers in prime locations have, however, started to climb again and reached approx. 1,600 m 2, while in the second half of the year there have already been significant turnovers reported. Pedestrian frequency (average per hour) Road 2018 ø National ranking Georgstraße 10,985 11,718 5 Bahnhofstraße 8,775 8, Karmarschstraße 5,540 5, Große Packhofstraße 5,185 6, Source: James Lang LaSalle survey on Saturday , 13:00-16:00 hours. The national ranking represents placings from a total of 174 surveyed shopping streets. RETAIL PROPERTY MARKET 35

37 Rents and yields Prime rent city in /m Net initial yield, prime location in % Prime rent, city (prime location) Average rent, city (prime location) Net initial yield, retail parks, prime location Net initial yield, prime location Source: bulwiengesa AG, market player estimates Prime rents dip slightly Prime rents in Germany s top locations reached short-lived peaks in many locations during 2017, including Hannover. In part, prime rents hit the limits of that which retailers were able to generate in various locations. Only in isolated cases are retailers still willing to accept higher rental levels, and then only for exceptional locations, for example flagship stores. During the course of 2018, Hannover market players expect, despite the limited availability of high-quality space and the attractions of Georgstraße, to see a stagnation or a dip of realisable peak rent to 185. In the course of 2018 moderate rental price increases are possible in terms of average values and also in places outside of the prime locations. Retail sector structure of prime locations Hannover, share of sales floor 17.8 % 1.5 % 0.9 % 1.5 % 5.2 % 19.2 % 27.2 % Textile Shoes/leather goods Health/beauty Jewellery/jewellers Gastronomy/food Telecommunications/electronics Home/house/fittings Stationery/books 7.0 % Sports/outdoor Others Source: JLL, Retail city profile % 7.5 % 36 PROPERTY MARKET REPORT 2018

38 The Ace & Tate glasses brand of Amsterdam has moved away from pure e-commerce operations and now offers over the counter retail outlets. In April 2018 the company opened its tenth German store in the Karmarschstraße. RETAIL PROPERTY MARKET 37

39 A very safe investment since April 2018 guests have enjoyed meals in the converted vaults of the former Dresdner and Commerzbank. The Vince restaurant is situated directly behind the Opera house in Hannover s Börsenviertel. THE SALES FLOOR IN HANNOVER REGION TOTALS APPROX. 2.1 MILLION M 2, AROUND 285,000 M 2 OF WHICH ARE IN HANNOVER S CITY CENTRE. Swiss glasses brand VIU is expanding in Hannover in mid-june it opened an approx. 40 m 2 shop on the Georgstraße. The company has 17 stores in Germany. 38 PROPERTY MARKET REPORT 2018

40 Transaction market: Prices reach peak level, yields fall In Hannover s inner city, the yields hardly differ between the various main shopping streets. More than 90 % of the investment volume in Hannover properties in recent years took place at prime locations. While the net initial return is only 4 % (down 15 base points), prices in Hannover have again hit a new high. Here again the lack of properties available in attractive locations is helping drive prices up. The net initial yield for decentralised locations is an average of 5.8 % (down 15 base points). Good retail centres in prime locations have, however, been traded at in part significantly higher levels. Locations around Hannover In Hannover s environs, the total sales floor available is approx million m 2, with municipalities boasting in part excellent retail centrality. The centres of Isernhagen, Laatzen and Langenhagen have undergone in part major refurbishments together with extensions in recent years. Main investors in these cases also include foreign investors, who have invested in the shopping and retail parks while also acquiring properties for their portfolios. The "Neue Mitte" project in Garbsen is set to start shortly (15,000 m 2 sales floor), where the Röther Beteiligungsgesellschaft is planning a retail centre anchored around one of the company s own fashion parks. In early April 2018 the French Uniball-Rodamco company took over management of the Leine-Center Laatzen shopping mall. The shopping centre at Laatzen s city centre has approx. 40,000 m 2 sales floor and more than 100 shops. RETAIL PROPERTY MARKET 39

41 Sales floor figures in Hannover Region Neustadt a. Rbge. 61,000 m 2 Wedemark 42,000 m 2 Burgwedel 33,000 m 2 Garbsen Wunstorf 177,000 m 2 106,000 m 2 Langenhagen 90,000 m 2 Isernhagen 187,000 m 2 Burgdorf Uetze 48,000 m 2 19,000 m 2 Lehrte Seelze Hannover 69,000 m 2 22,000 m 2 864,000 m 2 Barsinghausen 59,000 m 2 Gehrden Ronnen- 12,000 m 2 berg 36,000 m 2 Wennigsen 17,000 m 2 Hemmingen 36,000 m 2 Laatzen 128,000 Pattensen 22,000 m 2 m 2 Sehnde 26,000 m 2 up to 20,000 m 2 Springe 44,000 m 2 > 20,000 m 2 to 40,000 m 2 > 40,000 m 2 to 60,000 m 2 > 60,000 m 2 to 100,000 m 2 up to 200,000 m 2 > 200,000 m 2 Source: Retail inventory survey commissioned by Hannover Region: data status end PROPERTY MARKET REPORT 2018

42 A modern newbuild at the transition between Steintorplatz and Georgstraße is to replace a post-war commercial building and offer approx. 1,500 m 2 space of which some 800 m 2 sales floor. A rental contract with a textile chain already active in Hannover has been signed; the building is scheduled for completion in The ONLY brand, part of the Danish Bestseller textile retail group, opened a shop in the Karmarschstraße in spring The Dutch HEMA department store will be opening directly adjacent in autumn RETAIL PROPERTY MARKET 41

43 Shopping centre/arcade 1 Ernst-August-Galerie 2 Galerie Luise/Langensche Höfe 3 Kaufland Einkaufszentrum 4 Kröpcke-Passage 5 Markthalle 6 Niki-de-Saint-Phalle-Promenade 7 Ihr Einkaufsbahnhof Hannover Hauptbahnhof Major retailers/department stores 8 C & A 9 Galeria Kaufhof am Ernst-August-Platz 10 Galeria Kaufhof an der Marktkirche 11 Karstadt 12 Karstadt Sports 13 Peek & Cloppenburg im Kröpcke-Center 14 Primark 15 Saturn Gastronomy project developments, conversions, relocations Sinne Genuss am Fluss 17 Amorino 18 Burgerheart 19 Food Line 20 Francesco & Fratelli 21 Gastronomie im LIVIN 22 Giovanni L./Fritzchen 23 Piazza Italiana 24 Rotonda 25 Seven Sundays 26 Sissi & Franz Retailers/project developments, conversions or openings ace & tate 31 bolia 32 Daniel Wellington 33 ehem. New Yorker 34 Foto Gregor 35 HEMA 36 Luxus Lashes 37 Manufactum 38 Neubau Georgstraße 39 ONLY 40 shoehouse/emma/donna 41 Schlafzimmerei 42 Schuh Orlow 43 Søstrene Grene 44 Tommy Hilfiger 45 TUI 46 Vagant 47 VIU 48 Weitz 49 Werner Christ 50 Wömpner Dessous Key Main station/intercity P Multi-storey car park/parking U Tram station Prime location Pedestrian precinct Old Town Shopping centre/arcade 27 Vapiano 28 Vince 29 zeitfür 42 PROPERTY MARKET REPORT 2018

44 Selected projects in retail and gastronomy Celler Straße Rundestraße Ulrichs-Straße 3 Ras Herschelstraße Brüderstraße Odeonstraße Lister Meile Raschplatz Herrenstraße traß e 21 Reuterstraße 16 Goseriede Münzstraße Scholvinstraße Burgstraße P Roßmühle Pferdestraße Schlossstraße Am Steintor Am Marstall Reitwallstraße Kreuzkirche Ballhofplatz 18 Steintorstraße Knochenhauerstraße Nordmannpassage Kramerstraße Leinstraße Nds. Landtag Leineschloss P Schmiedestraße Schuhstraße Kanalstraße Limburgerstraße Kurt-Schumacher-Straße 8 Georgstraße Marktkirche 41 P Osterstraße Mehlstraße 14 Kleine Packhofstraße 10 Andreaestraße Heiligerstraße Seilwinderstraße 5 Schillerstraße Karmarschstraße U Grupenstraße P 31 Große Packhofstraße Platz der Weltausstellung Marktstraße Rosenstraße Kröpcke Ständehausstraße Windmühlenstraße Osterstraße Georgstraße Baringstraße Luisenstraße Rathenaustraße Staatsoper Opernplatz An der Börse Joachimstraße Georgsplatz Theaterstraße Sophienstraße Landschaftsstraße Georgsplatz Am Archiv Friederikenplatz Leinstraße Köbelinger Markt Röselerstraße P Bahnhofstraße P Hauptbahnhof Ernst-August-Platz P P U Theodor- Lessing-Platz Ebhardts Aegidienkirche Georgswall 0 Breite Straße m N e RETAIL PROPERTY MARKET 43

45 The NH Hotel Group is planning a new hotel on Hannover s Klagesmarkt. The property is planned as a 4-star hotel with 89 rooms. NH Hannover will be the company s first hotel in the state capital of Lower Saxony and its 63rd operation in Germany. The building is located on the northern edge of the city centre where the owner, the BAUM Unternehmensgruppe, will convert an office building into an hotel over the next two years m Overnights 2017 RevPAR PROPERTY MARKET REPORT 2018

46 HOTEL- PROPERTY MARKET 4.8 % Net initial yield 2018 The figures for overnight stays in Hannover and the Region have been climbing steadily and hit the 4-million mark for the first time in It is not only business travellers coming to Hannover for flagship fairs. More and more city travellers are discovering what the Hannover Region has to offer, resulting in a wave of hotel openings over the next few years. 45

47 FACT CHECK HOTELS In 2017 Hannover city had 43 hotels providing some 8,806 beds and a total of 103 hotel establishments offering approx. 13,755 beds (of which 44 were hotels garni (offering bed and breakfast only) with approx. 4,000 beds)). 9 More than half of all hotels are in Hannover s centre and in the direct vicinity of the fair grounds. Hannover and the Region achieved overnight stay figures which rose by around 9 % between 2013 and 2017 to a record 4.01 million. 10 Hannover Region had around 30,870 beds available in 2017, of which 21,180 were in hotels and hotels garni. By 2021 current projects (under construction or detail planning) for 10 hotels will have introduced around 1,800 new rooms into the hotel market. The investment transaction volume in the hotel property market in 2017 was approx. 58 million. Overnight stays top 4-million The Hannover Region s tourism industry once again counted more overnight stays year-on-year (up 121,000 or 3.1 %). The Lower Saxony state statistical office counted over 2.28 million overnight stays in 2017 in the State Capital Hannover. Taking the 21 towns and municipalities of the Hannover Region together, the total is around 4.01 million overnights. City tourism gaining The number of overnights rose by around 9 % between 2013 and Previously it was above all business travellers, visiting Hannover s major flagship fairs, who stopped in Hannover. The seven largest fairs attract around 1.34 million visitors. 11 During those fairs the 341 hotel establishments in the Region, with some 30,870 beds, are fully booked. Market players active in the property industry and tourism see further potentials for growth above all in city tourism. The increase seen in overnight stays in this sector has been significantly more dynamic since 2013, with tourist attractions such as the Adventure Zoo and the international fireworks competition in Herrenhausen attracting city tourists. 9 Lower Saxony state statistical office, 2018 (monthly survey of tourism; table K ) 11 Hannover flagship fairs 2017; Agritechnica, CeBIT, EMO, Hannover Industry, LIGNA, infa, Pferd & Jagd 10 Lower Saxony state statistical office, 2018 (monthly survey of tourism; table K ) 46 PROPERTY MARKET REPORT 2018

48 Net initial yield in % Net initial yield in % Net initial yield, hotel Source: bulwiengesa AG; in the case of yield spreads the respective lower end is given. Rate of bed growth catching up The growth in the number of beds in Hannover city has been relatively modest during recent years (since 2013) compared with the dynamic development in the number of overnight stays. In the city, the total number of beds basically stagnated across all hotel establishments (plus 1.4 %). In real terms, the number of beds in the city s hotels actually dropped by 3 % to some 8,800 beds. A rebound is now taking place. By 2021 the 10 current hotel projects (projects under construction or in detail planning) will inject around 1,800 new rooms into the hotel market. Overnights in million Overnight stays in Hannover Region Hannover Region Source: Lower Saxony state statistical office, 2018 HOTEL PROPERTY MARKET 47

49 Structure of hotel establishments 2017; number of establishments Hannover Region Hotel Hotel garni Gasthof Pension Other Source: Lower Saxony state statistical office, 2018 Bed occupancy rates and yields up Thanks to the mix of city and culture tourism plus a fairly constant fraction of business travellers, the rate of bed occupancy is good. The average occupancy rate of rooms available in 2017 was 64.8 %, with revenue (RevPAR) climbing to Hotels becoming an asset class The investment-transaction volume in the hotel property market amounted to approx. 58 million in Transactions such as the sale of the Sheraton Pelikan on the Podbielskistraße in 2017 and the Intercity Hotel behind the central station, even before its completion, both illustrate the growing level of attraction of the Hannover hotel market for investors. Against a backdrop of many hotel projects in the pipeline, the expectation is for increased dynamism in the years ahead. Structure of hotel establishments 2017; number of beds 10,000 9,000 8,000 7,000 Number of beds 6,000 5,000 4,000 3,000 2,000 1,000 0 Hotel Hotel garni Gasthof Pension Other Hannover Region Source: Lower Saxony state statistical office, PROPERTY MARKET REPORT 2018

50 Located directly adjacent to the Park der Sinne in Laatzen, the new FourSide hotel with 150 rooms under construction which boasts good traffic links to the International Fair Grounds. Phoenix, a Cologne-based investor, also plans to regenerate the former Hotel Britannia located behind the new building Citygrove of London is planning to convert sections of the Bredero high-rise to create a hotel. The plans prepared by SKAI Siemer Kramer architects and engineers envision the triangular building located between the Hamburger Allee and Friesenstraße as a hotel with up to 220 rooms. HOTEL PROPERTY MARKET 49

51 Sold before completion: bauwo Grundstücksgesellschaft sold the Intercity Hotel Hannover, 220 rooms, for around 37 million to an institutional investor. The hotel is being erected based on a design by Hamburg architects Böge Lindner K2 directly behind the central station and is scheduled for completion in March The Intercity Hotel Group has taken a 20-year lease for the building. 50 PROPERTY MARKET REPORT 2018

52 The Stiftstraße has a central location in Hannover s inner city: Cologne-based phoenix Holding intends to demolish a former print shop to build a new hotel with 100 beds. Hotel classifications in Hannover and the Region 2017 Hannover Region Of the total of 340 hotel establishments only 53 have categories based on the German hotel classification system. Source: Fairmas, Fairmas data Hotels Source: Data for Hannover city: Lower Saxony state statistical office, Fairmas KPIs, chain hotels 2018 Average occupancy rate in % Average room price in RevPAr (Revenue per available room) in Average stay (in days) Beds in hotels 8,889 8,357 8,806 HOTEL PROPERTY MARKET 51

53 Hotel projects No. Hotel Location Rooms Category* Project developer/ operator/investor Completion/ Opening Completions 1 Loftstyle Hotel Gradestraße *** Dobler Hotels GmbH 2018/ Star Inn Hotel Premium, by Comfort Under construction/in preparation Hamburger Allee *** Hirotani Projekt GmbH (P) Star Inn Hotels GmbH (B) Bavaria Fond Green (I) Intercity Hotel Andreas-Hermes-Platz 220 *** bauwo Grundstücksgesellschaft mbh, Deutsche Hospitality 4 Motel One Georgstraße ** meravis Gewerbeimmobilien GmbH (I), Motel One GmbH (B) me and all hotel Aegidientorplatz 2 a 163 **** me & all Hotels GmbH DORMERO Hannover- Langenhagen Airport Walsroder Straße 105, Langenhagen 159 **** DORMERO Hotel AG B&B Hotel Vahrenwalder Straße/ Phillipsbornstraße Detail planning 150 ** LIST Develop Commercial GmbH & Co. KG Hotel am Friedrichswall Friedrichswall **** INTOWN Property Management GmbH Hotelprojekt im Lister Tor Raschplatz/Hamburger Allee 220 n/a Citygrove Adapt-Hotel am Pferdeturm Röpkestraße 200 ***/**** BPD Immobilien entwicklung GmbH Inklusions-Hotel Wissenschaftspark Hollerithallee 136 *** bauwo Grundstücksgesellschaft mbh NH Hotel Am Klagesmarkt **** BAUM Unternehmensgruppe, NH Hotel Group 2020 Mid-term planning 13 Expo Gelände Boulevard der EU 160 *** MBN Bau AG 2021/ FourSide Hotel Karlsruher Straße/ Erich-Panitz-Straße 150 n/a Phoenix Hotelneubau GmbH Hotelprojekt Laatzen (refurbishment of former Hotel Britannia) Karlsruher Straße n/a Phoenix Hotelneubau GmbH 2019/ Ninety Nine Hotel Stiftstraße 100 n/a Phoenix Hotelneubau GmbH Former Postscheckamt Brüderstraße/Herschelstraße/ Goseriede n/a n/a BAUM Unternehmensgruppe, meravis Bauträger GmbH 2020/2022 * Details of category are only a guideline for the anticipated classification of the hotel 52 PROPERTY MARKET REPORT 2018

54 Selected hotel projects A7 A 352 Langenhagen B A2 11 M it 1 te lla ndkanal B6 B3 7 HANNOVER B B 65 B6 B B3 0 0,5 1 1,5 km Lein e N Laatzen A 37 Key Airport Exhibition grounds Main station/main line trains Tram S-train City boundary B 443 HOTEL PROPERTY MARKET 53 B6

55 The company bauwo Grundstücksgesellschaft built a large-scale, 26,000 m 2 logistics hall (completed in October 2017) at Lehrte-Sievershausen, directly at the A2 motorway towards Berlin. The building was acquired before completion by RLI Investors for a logistics property fund. Wellpack is one of the tenants in the three units. 260,000 m /m 2 Area turnover Prime rent PROPERTY MARKET REPORT 2018

56 LOGISTICS PROPERTY MARKET 5.1 % Net initial yield 2018 The logistics sector plays a central role in ensuring the competitiveness and sustainable development of the Hannover Region economic area. It is above all industry and production operations which are dependent upon having an efficient network of logistics service providers or are investing in setting up their own logistics capacities to allow direct site integration. 55

57 LOGISTICS FACT CHECK Hannover Region is a key European logistics hub and seaport hinterland hub. Hannover is the second most important logistics location in North Germany after Hamburg. Hannover Region offers around 3.01 million m 2 of logistically usable hall space in some 285 buildings, of which alone 0.97 million m 2, approx. 57 buildings, have been built since In 2017 the Region saw transactions for logistics and production properties with a total value of around 210 million. Excellent connections A central position, excellent infrastructures and extremely well-connected business areas are all essential factors which help make the Hannover Region a key production and distribution location which benefits in particular from its excellent logistics links to both Eastern European and Scandinavian countries. Logistics centres around Hannover serve more than just their regional markets. The Hannover Region is in fact a strategic logistics and key seaport hinterland hub for goods streams from and to all North German ports. Modern logistics space offers in the Region Hannover Region currently offers around 3.01 million m 2 of hall space suitable for logistics in approx. 285 properties, of which alone 0.97 million m 2 in approx. 57 buildings erected since the year Estimate and extrapolation based on a hall area full survey at end 2015/ early 2016 by bulwiengesa. Only those properties greater than 1,000 m 2 utility space were considered. An estimate to represent smaller areas was not added. The office space share of the overall logistics share also represents an additional 5 % or 130,000 m 2. Prospective increase in area by around 500,000 m 2 by 2020 Several project developers and owner-occupiers have secured themselves strategically well positioned land with planning permission within the Region over the last few years. Overall, projects (with planning rights) known of and planned for the years ahead (up to 2020) represent some 500,000 m 2 hall space and 30,000 m 2 office and mezzanine areas suitable for logistics applications. Of these, approx. 135,000 m 2 are currently under construction or will begin construction in Turnovers climb significantly in 2018 The annual turnover of logistics properties climbed significantly during 2017 to some 260,000 m 2 logistically usable hall space. This is equivalent to a plus of 48.5 % (85,000 m 2 ) compared with The annual turnover in 2017 was approx. 90,000 m 2 above the average annual turnovers of the last 5 years ( ) of 170,000 m ,000 m 2, equivalent to 84.5 % of total turnover, were rented; the share of owneroccupied buildings is about 14.5 % (40,000 m 2 ). Prime yields up during 2017 and 2018 The realistic prime rents rose during 2017 to 4.60/m 2 (plus 10 cents). The average rent for good quality inventory logistics buildings was about 3.70/m 2 in 2017 (up 5 cents). According to market player estimates, rents are expected to also rise slightly during 2018 to 4.70/m 2, with average rents settling at 3.80/m 2. In addition to these figures, the location has the potential, assuming appropriate offers are available, to achieve considerably higher rents for modern logistics properties. 56 PROPERTY MARKET REPORT 2018

58 Hall area in m 2 Logistics property turnover in the Hannover Region , , , , ,000 50,000 Demand in 2017 characterised by trading and e-commerce services The approx. 40,000 m 2 hall erected directly on the A7 motorway was the largest logistics property sector project during The space is used by FIEGE, a contract logistics service provider, (30,000 m 2 ) and Rossmann (10,000 m 2 ). The facility was developed by the FIEGE-Group of Greven as a newbuild, and was sold before commissioning in early December 2017 to an Austria-based property fund, Union Investment. Amazon is erecting a 35,000 m 2 hall in Garbsen during 2018 directly at the A2 motorway. The BAUM Unternehmensgruppe of Hannover is building the centre; commissioning and long-term leasing by Amazon is planned starting Q Associated with the logistics sheds, 2017 also saw a turnover of minimum 20,000 m 2 in office areas; these spaces are not, however, considered as additional turnover for the property office market because they are not designed for Rental Owner-occupied use independently of the shed/hall areas. Source: Surveys and calculations by Hannover Region Rents and returns for logistics and service areas * in /m Rent in /m Return in % * Prime rent logistics and warehousing space Net initial yield prime locations in % Average rent logistics and warehousing space Source: bulwiengesa AG * Forecast of market participants LOGISTICS PROPERTY MARKET 57

59 16 1 Hannover Airport Airport Business Park/Langenhagen 1 ACT Air Cargo Terminal Hannover 10 Iveco Nord Nutzfahrzeuge 2 ALC Logistikpark (tenants include Connox AG, MTU) 11 Krage Speditionsgesellschaft 3 Continental Businesspark (under construction) 12 MTU Maintenance (logistics) 4 Dachser SE 13 MTU Maintenance DB Schenker DHL Express DHL Freight (under construction) HS-C Hempelmann (under construction) Hermes Logistik Nordhub Prologis Park Hannover (tenants include arvato ecommerce, expert, REWE online, WABCO) Prologis Park Hannover DC3 (3rd BP) TNT Express Weatherford Oil Tool 58 PROPERTY MARKET REPORT 2018

60 Business park Bayernstraße/Langenhagen 18 CLS Express Logistik 19 DB Schenker 20 DHL Solutions During the last 20 years, the Airport Business Park (APB), situated around Hannover Airport in Langenhagen, has developed into a success story for the logistics sector in the Region. The APB proper and the directly adjacent business park of Langenhagen-Godshorn are now home to a large number of well-known logistics enterprises as well as industry and production organisations with high levels of logistics utilisation Kartonagenfabrik H. Eickemeier expert Go Express HS-C Hempelmann LASER Internationale Spedition Ritter Logistik Vinzelberg Transporte LOGISTICS PROPERTY MARKET 59

61 Union Investment acquired the FIEGE Mega Centre in Burgwedel near Hannover, which commenced operations in December 2017, as part of a forward funding transaction. The acquisition of the project was on behalf of an open property public fund based in Austria. Developer and vendor is FIEGE, a logistics service provider based in Greven, which also remains the building s main tenant. One of the four hall sections is leased to Rossmann. The purchase price was about 46 million. Kirsch Pharma, a globally active producer of pharmaceutical raw materials, complemented and extended its product range with a new production facility for Kirsch Pharma HealthCare in Bissendorf. The subsidiary in Wedemark will produce and distribute finished electrolyte medicinal products (all with pharmaceutical licences) using mineral salt mixtures delivered by the parent plant in Salzgitter. 60 PROPERTY MARKET REPORT 2018

62 Much sought-after investment properties Logistics and production properties are popular investment alternatives as investment assets and enjoy a high level of demand; the transaction volume during 2017 reached around 210 million. As a result, the prime yield is developing excellently and has dipped significantly compared with 2017 by 70 base points to 5.1 %. Outlook for project developments up to 2020 In a fashion similar to the German market overall, in the Hannover Region it can be seen that more project developments are being brought to market designed from scratch as multi-user halls and, as such, allow flexible follow-on leasing. Another option is for logistics service providers to build modern logistics centres as a way of optimising their flexibility and capacity to satisfy differing customer requirements. Furthermore, in the Region industrial and commercial enterprises are investing increasingly in their own properties to realise high level logistics functions or are collaborating with project developers. HANNOVER REGION HAS AROUND 3.01 MILLION M 2 LOGISTICALLY USABLE HALL SPACE IN APPROX. 285 BUILDINGS. Logistics/production completions in Hannover Region , , , ,000 Hall space in m 2 120, ,000 80,000 60,000 40,000 20, * 2020* * Forecasts based on plans known to date. Source: Surveys and calculations by Hannover Region LOGISTICS PROPERTY MARKET 61

63 Key logistics potentials 2018 No. Logistics locations Area potential Supra-regional Comments transport links 1 Barsinghausen/ Groß Munzel-Nord 35 ha development area A2 J Wunstorf-Kolenfeld Suitable for logistics, wholesale: 1. building phase approx. 20 ha GI in preparation 2 Barsinghausen/ Bantorf, west of the A7 12 ha A2 J Barsinghausen Suitable for logistics, wholesale, customer service, manufacturing industry 3 Burgwedel/ Großburgwedel 12 ha GE, 18 ha development area A7 J Großburgwedel Present: central and regional warehouse Rossmann (drugstore), FIEGE Logistik 4 Garbsen/Koppelknechtskamp-Nord 5 Garbsen/Gutenbergstraße-West 20 ha GE B6/A2 J Hannover-Herrenhausen Suitable for logistics, wholesale, construction industry, trades, manufacturing industry 9 ha GE A2 J Garbsen Suitable for logistics, automotive, wholesale 6 Hannover/ Am Ahltener Weg 7 ha GE B65 Südschnellweg A7 J Hannover-Anderten Suitable for city logistics, trades, small business 7 Isernhagen/Kirchhorst 12 ha GE A7 J Altwarmbüchen Suitable for wholesale, customer service, manufacturing industry 8 Laatzen-Ost 40 ha Mainly GI A 37/B 6 Messeschnellweg J Messe A 7 J Laatzen Directly adjacent to the Fair Ground, suitable for logistics, wholesale; building rights GI in preparation for Langenhagen/ Extension Airport Business Park West 10 Langenhagen/Airport Business Park Ost 36 ha development area J Hannover-West A 352 J Engelbostel / J Hannover-Airport 5 ha airport J Hannover-West A352 J Engelbostel/ J Hannover-Airport Development area between runways; first building phase of 6.8 ha GI building rights in preparation, extension of the existing development. In addition, airport-internal and associated usage, also for logistics (limitation: no plant pursuant to Annex of 4th BImSchV); resident TNT, Aircargo terminal Suitable for logistics and airport-associated businesses, SO airport 11 Lehrte-Ost 5 ha GE A2 J Lehrte-Ost Suitable for wholesale, manufacturing industry; resident: Hornbach logistics centre 12 Sehnde/Höver 30 ha GE A7 J Hannover-Anderten Suitable for logistics, wholesale, industry; the resident: Holcim (cement works), flower wholesaler Landgaard, ADVEO, Köster & Hapke, Trans-o-flex, Brand Logistics, Delticom AG 13 Wedemark/Berkhof 7.5 ha GE/GI A7 J Berkhof Suitable for wholesale, manufacturing industry; resident: REWE-Frische logistics centre 14 Wedemark/Gailhof, To the north of L ha development area A 7 J Mellendorf A 352 J Hannover-Nord Suitable for logistics, wholesale, customer service, manufacturing industry 62 PROPERTY MARKET REPORT 2018

64 No. Logistics locations Area potential Supra-regional transport links 15 Wedemark-Meitze/ 13 ha development area A7 J Mellendorf Neuer Hessenweg A352 J Hannover-Nord Comments Suitable for logistics, wholesale, customer service, manufacturing industry 16 Wunstorf/ business park Süd 185 ha development area A2 J Wunstorf-Kolenfeld Suitable for logistics, wholesale, industry; resident: syncreon (automotive), Marley. Transport companies Oskar Neukirch, Langhorst, Franke, Kraftverkehr Nagel, MUK Logistik; development area for trimodal logistics (connection road/rail/waterways) within the framework of the logistics focus West; 1st building phase with 11 ha GI building rights in preparation GE = business park GI = industrial area SO = special area Development area = land use plan not yet commenced or preparatory land use planning in progress The numbers refer to the map on pages Investment-compatible logistics areas in Hannover Region Available area Number of properties Municipality Total Modern logistics properties from 2009 Total Modern logistics properties from 2009 Hannover 870, , Langenhagen 500, , Lehrte 439, , Wunstorf 192, , Wedemark 187,000 59, Garbsen 157,000 41, Barsinghausen 138,000 94, Sehnde 127,000 60, Isernhagen 110,000 29, Burgwedel 92,000 65, Ronnenberg 69,000 3, Laatzen 51,000 10, Total 3,010, , Source: bulwiengesa AG; extrapolation based on hall area inventory survey Only those properties offering > 1000 m 2 logistically suitable utility space were considered. Only individual values are published for municipalities with minimum five individual buildings and/or a logistically usable total area of minimum 25,000 m 2. Hall areas in municipalities not specifically listed here are added to the overall utility space for the Region. An estimate to represent smaller areas was not added. Rounded to the next The office space share of the overall logistics space also represents an additional 5 %. LOGISTICS PROPERTY MARKET 63

65 Modern logistics properties (from year of building 2009) Neustadt a. Rbge. Wedemark Burgwedel Wunstorf Garbsen Langenhagen Isernhagen Burgdorf Uetze Seelze Hannover Lehrte Barsinghausen Gehrden Ronnenberg Hemmingen Laatzen Sehnde Wennigsen Pattensen Springe up to 50,000 m 2 > 50,000 m 2 to 100,000 m 2 > 100,000 m 2 Source: bulwiengesa AG 64 PROPERTY MARKET REPORT 2018

66 Selected logistics projects No. Building Location Investor, developer and/or user Size Status Completion Completions 1 FIEGE/Rossmann A7 J Großburgwedel Business park west of the A7 Burgwedel FIEGE Logistik Stiftung & Co. KG Union Investment 75,000 m 2 plot 40,000 m 2 hall 4,000 m 2 office Q4/ Amazon Sortation Center A2 J Garbsen Business park Süd-West Garbsen BAUM Unternehmensgruppe 128,000 m 2 plot 31,000 m 2 hall 3,500 m 2 office Q4/ bauwo logistics centre A2 J Lehrte-Sievershausen Business park Sievershausen Lehrte bauwo Grundstücksgesellschaft mbh RLI Investors 67,200 m 2 plot 26,000 m 2 hall 1,250 m 2 office/ mezzanine Q3/ Häfele A2 J Lehrte-Ost, business park Ost 1 (Mielestraße) Lehrte bauwo Grundstücksgesellschaft mbh 44,000 m 2 plot 19,600 m 2 hall 210 m 2 office Q3/ Delticom/Gourmondo (extension) A7 J Hannover-Anderten B65 Südschnellweg, business park Hägenstraße, Hannover Delticom, Union Investment 12,000 m 2 hall Q3/ Kirsch Pharma A 352 J Langenhagen-Kaltenweide Business park Bissendorf Wedemark Kirsch Pharma HealthCare GmbH 32,000 m 2 plot 3,800 m 2 production/ logistics 710 m 2 office Q3/ Tröster (extension) A37/Messeschnellweg J Messe-Süd, business park Am Brabrinke Hannover Troester GmbH & Co. KG 3,200 m 2 production/ logistics Q1/ Küchen Aktuell service and logistics centre A2 J Hannover-Langenhagen Business park Brink-Hafen (Vahrenwalder Straße), Hannover Küchen Aktuell GmbH 2,500 m 2 hall 4,000 m 2 retail/ exhibition Q3/ Exportverpackungen Sehnde (extension) A7 J Hannover-Anderten B65 Südschnellweg Business park Lohweg Hannover Exportverpackung Sehnde GmbH 2,500 m 2 hall Q3/ VSM Versandlager A2 J Hannover-Langenhagen Business park Hainholz Hannover Under construction/in preparation VSM Vereinigte Schmirgelund Maschinen- Fabriken AG 1,000 m 2 hall Q2/ Continental J Hannover-West/A 352 J Engelbostel/Hannover Airport Airport Business Park-Münchener Straße, Langenhagen Bertram Projektmanagement 80,000 m 2 plot 34,000 m 2 hall Q1/ bauwo logistics centre (former Brinker Maschinenfabrik) A2 J Hannover-Langenhagen Business park Brink-Hafen (Vahrenwalder Straße) Hannover bauwo Grundstücksgesellschaft mbh 68,000 m 2 plot 34,000 m 2 hall 840 m 2 office 2019 LOGISTICS PROPERTY MARKET 65

67 Logistics locations Area potential in commercial/industrial parks (suitable for logistics) The numbers refer to the table on pages Selected logistics projects The numbers refer to the tables on pages 65 and 69 1 Barsinghausen/Groß Munzel-Nord 35 ha GE 1 FIEGE/Rossmann 2 Barsinghausen/Bantorf 12 ha 2 Amazon Sortation Center 3 Burgwedel/Großburgwedel 30 ha GE* 3 bauwo logistics centre 4 Garbsen/Koppelknechtskamp-Nord 20 ha GE 4 Häfele 5 Garbsen/Gutenbergstraße-West 9 ha GE 5 Delticom/Gourmondo (extension) 6 Hannover/Am Ahltener Weg 7 ha GE 6 Kirsch Pharma 7 Isernhagen/Kirchhorst 12 ha GE* 7 Tröster (extension) 8 Laatzen-Ost 40 ha GI 8 Küchen Aktuell service and logistics centre 9 Langenhagen/extension Airport Business Park West 36 ha* 9 Exportverpackungen Sehnde (extension) 10 Langenhagen/extension Airport Business Park Ost 5 ha SO 10 VSM Versandlager 11 Lehrte-Ost 5 ha GE 11 Continental 12 Sehnde/Höver 30 ha GE 12 bauwo logistics centre (former Brinker Maschinenfabrik) 13 Wedemark/Berkhof 7,5 ha GE/GI 13 Prologis Park (extension) 14 Wedemark/Gailhof 13 ha* 14 Aurelis main goods station (revitalisation) 15 Wedemark-Meitze/Neuer Hessenweg 13 ha* 15 Hempelmann (move and extension) 16 Wunstorf/Business park Süd 85 ha* 16 Laverana 17 DHL Freight * Area potentials up to 5 ha up to 10 ha up to 30 ha up to 90 ha Spedition Ebeling (extension) ALDI Nord distribution centre (1st BP) Verdion e-commerce logistics centre (extension) Weatherford (extension) Baytree logistics centre bauwo logistics centre Berkhof II Bumke Key completed L Lindener Hafen Airport Main station / intercity under construction M Misburger Hafen International Fair Ground Waterways in planning N B Nordhafen Brinker Hafen Freight village Hannover-Lehrte Motorway Main road, dual carriageway R Marshalling Yard Seelze Main road Tram Railway 66 PROPERTY MARKET REPORT 2018

68 NIENBURG Logistics locations and selected logistics projects Aller B 214 A7 Celle B3 Berkhof E 45 Lein e Wedemark B B 214 Mellendorf Burgwedel 6 Neustadt a. Rbge. 3 1 B3 Großburgwedel A 352 B6 B Steinhuder Meer B B A 37 A2 N B Lein e 12 B B6 1 B B 442 anal Mittellandk Burgdorf Langenhagen B 522 E Isernhagen Garbsen Wunstorf Uetze 10 M i t te llandkanal Seelze 19 B3 R 14 B 441 HANNOVER L al Lehrte M Groß Munzel 4 12 A Höver B 65 Bad Nenndorf E 30 B 443 Sievershausen B 65 2 B B6 Bantorf B 65 Barsinghausen 20 Gehrden Sehnde 7 B B3 Ronnenberg Hemmingen Lein e B 443 A 37 Mittellandkanal B 444 B 65 B 494 Laatzen E 30 B 443 Wennigsen PROPERTY MARKET REPORT km B6 LOGISTICS PROPERTY MARKET N

69 No. Building Location Investor, developer and/or user Size Status Completion 13 Prologis Park (extension) J Hannover-West/A352 J Engelbostel/Hannover Airport, airport Business Park - Münchener Straße, Langenhagen Prologis GmbH 45,000 m 2 plot 21,700 m 2 hall 1,600 m 2 mezzanine 1,400 m 2 office Aurelis Main goods station (revitalisation) A37/Messeschnellweg J Pferdeturm A2 J Hannover Langenhagen Aurelis Real Estate Service GmbH 20,000 m 2 hall 5,500 m 2 available land Q1/ Hempelmann (Move and extension) J Hannover-West/A 352 J Engelbostel/Hannover Airport Airport Business Park Münchener Straße Langenhagen Hempelmann Hannover building services 80,000 m 2 plot 16,000 m 2 hall 5,500 m 2 office Laverana A2 J Barsinghausen Bad Nenndorf, business park Barsinghausen-Bantorf Barsinghausen Laverana GmbH & Co. KG 40,000 m 2 plot 12,000 m 2 hall 760 m 2 office Q2/ DHL Freight J Hannover-West/A 352 J Engelbostel/ Hannover Airport Airport Business Park Münchener Straße Langenhagen DHL Freight GmbH Deutsche Post DHL Group 63,000 m 2 plot 8,300 m 2 hall 3,800 m 2 office Q3/ Spedition Ebeling (extension) A7 J Mellendorf Business park An der Autobahn Wedemark Georg Ebeling Spedition GmbH 8,000 m 2 hall Q4/2018 In planning 19 ALDI Nord distribution centre (1st BP) A2 J Lehrte Business park Lehrte Nord 3 (Rudolf-Petzold-Ring) Lehrte ALDI Nord 170,000 m 2 plot 42,500 m 2 hall (1st BP) Q2/ Verdion E-Commerce logistics centre (extension) A37/Messeschnellweg J Messe-Nord Business park east of Weltausstellungsallee, Hannover Verdion Holding Ltd. 69,000 m 2 plot 42,000 m 2 hall 3,700 m 2 mezzanine 640 m 2 office 21 Weatherford (extension) J Hannover-West/A 352 J Engelbostel/Hannover Airport Airport Business Park Münchener Straße Langenhagen Weatherford Oil Tool GmbH 55,000 m 2 plot 22 Baytree logistics centre A2 J Hannover-Langenhagen Business park Brink-Hafen (Max-Müller-Straße), Hannover Baytree Logistics Properties LLP 60,000 m 2 plot 30,000 m 2 hall bauwo logistics centre A7 J Berkhof Business park An der A7 Wedemark bauwo Grundstücksgesellschaft mbh 49,700 m 2 plot 25,000 m 2 hall 24 Bumke A2 J Wunstorf-Kolenfeld Business park Groß Munzel Barsinghausen Zander Group 42,000 m 2 plot 2019 The numbers refer to the map on pages LOGISTICS PROPERTY MARKET 69

70 The Gundlach company plans to build a new residential quarter on an approx. 10,000 m 2 plot opposite the VIER complex in the Pelikan quarter called the ZWEI. An architectural competition in which eight architects offices participated saw Fink + Jocher (Munich) and Kister-Scheithauer-Gross (Cologne) emerge as the winners. Gundlach intends to build a mix of rented and owner-occupied apartments for people in various life phases, with a children s day-care centre and a small number of shops ,650/m 2 Prime rent residential, newbuild 2018 Acquisition cost, prime group Owner-occupied apartments PROPERTY MARKET REPORT 2018

71 RESIDENTIAL PROPERTY MARKET 26.5 Multiplier prime group Newbuild 2018 In the Hannover Region, in particular in the State Capital Hannover and its directly adjacent municipalities, the population figures have been rising steadily for many years. The houses available cannot satisfy demand. The body politic, administrations and housing industry agree that home building must increase significantly across all demand segments. The speedy creation of building rights and the provision of funds for subsidised housing are all actions intended to ensure that sufficient homes are available in the years ahead. 71

72 FACT CHECK RESIDENTIAL The growing population of State Capital Hannover and some of the adjacent municipalities is pushing up demand on the residential property market. Over the last five years (since 2013) the population of Hannover has risen by approx. 17,300 people (up 3.3 %) to around 541,800 people, while the Region was home at the end of 2017 to 1.17 million people (up 3.15 %). Over the same period, only 3,855 new apartments were completed in Hannover, such that there is a substantial demand for new residential properties, both now and in the future. On average Hannover has completed around 770 new apartments annually over the last five years. 13 In 2017 Hannover Region saw transactions for apartments and houses reach a total value of around 2.22 billion (plus 4.1 %). 14 Population growth outpacing building completions Over the last five years (from 2013 to end 2017) the population of Hannover city rose by approx. 17,300 people (plus 3.3 %) to about 541,800. Over the same period the number of people living in the Hannover Region as a whole rose by 36,000 to 1,175 million (plus 3.15 %). 15 Current population forecasts for Hannover city, the Region and the state, indicate that the population will continue to grow until In the period from 2013 to 2017 only around 3,855 new homes were completed in Hannover city, while in the surrounding area almost 7,403 were finalised. The average over the last five years in Hannover is for around 770 new apartments to be completed annually (in the Region: 1,480 units). 16 Bearing in mind the population forecast as described above, it is clear that there is a massive demand for new homes, both today and in the future. 13 Comparison of years 2013 through 2017 (completions total 3,855 units). Source: calculations of Hannover Region based on Lower Saxony state statistical office data, 2018 ( construction of new residential and non-residential buildings, without building measures on inventory buildings and without halls of residence; time series M and M ) 14 With respect to the total property transactions in residential and part-ownership, detached single and double-occupancy houses, terraced houses and semi-detached houses and apartment houses (inventory and newbuilds). Expert panel for propety values Hameln- Hannover, Figures based on the population register. The data differs from the figures provided by the Lower Saxony state statistical office. 16 Comparison of years 2013 through 2017 (completions total 3,855 units (SCH) and 7,403 (Region)). Source: calculations of Hannover Region based on Lower Saxony state statistical office data, 2018 (construction of new residential and non-residential buildings, without building measures on inventory buildings and without halls of residence; time series M and M ) 72 PROPERTY MARKET REPORT 2018

73 Building permits and completions State Capital Hannover and Hannover Region (housing units) 4,000 3,000 Number of housing units 2,000 1, Permits, surrounding area Permits, city of Hannover Completions, surrounding area Completions, city of Hannover Source: Lower Saxony state statistical office, 2018 (construction of new residential and non-residential buildings, without building measures on inventory buildings and without halls of residence/time series M and M ) Home building initiatives in the city and the Region The number of workers engaged in part-time or minor employment has risen significantly in the regional job market. This goes hand-in-hand with a rise in demand for affordable new housing. In order to satisfy this demand, a special contribution is to be made by the Hannover housing initiative, launched by the city in conjunction with the local housing industry in mid The housing sector entered into the commitment to build at least 1,000 apartments per annum by A quarter of these is to comprise publicly subsidised housing units, to which end the city of Hannover has earmarked approx. 63 million of funding, to be used to create attractive building cost subsidies. POPULATION FORECASTS FOR HANNOVER CITY, THE REGION AND THE STATE INDICATE POPULATION WILL CONTINUE TO GROW UNTIL The State Capital Hannover has further committed itself to follow through its home building initiative by making land available for housing and to issue building rights for between 500 to 700 housing units annually until 2020 on municipal as well as on private land. The development of new building projects on municipal land is one of the key aspects of the home building initiative. In general, State Capital Hannover releases municipal land, in accordance with the concept process, at a fixed price based on the market value. This procedure is intended to contribute to ensuring the city s quality standards and to enable speedy project realisation. RESIDENTIAL PROPERTY MARKET 73

74 Purchase price owner-occupied apartments (newbuilds) in Hannover Residential rents in prime price segment in Hannover , , , /m 2 3,000 2,000 /m , * * Average * Forecast by market players Source: bulwiengesa AG Prime group Re-let *Forecast by market players Source: bulwiengesa AG Newbuild Hannover Region also launched a regional homebuilding initiative in 2016 with the intention of supporting municipalities and investors to build homes and by so doing help in providing affordable housing for the Region s populace. The home building initiative is intended in particular to boost building in the affordable and subsidised segment. As a precondition for the realisation of subsidised housing, work is currently ongoing to develop a regional home building concept in cooperation with the Region s municipalities and relevant housing market players. At the same time, a programme of continuous area/land dialogue is in progress as is the drafting of a register of homebuilding land. A complementary plan is to create a central coordination office for residential building land development as the central contact for municipalities and investors For information about the activities and topics of the Hannover Region homebuilding initiative, please visit initiative. For latest information about subsidies available from the city and Hannover Region, please visit foerderung. 74 PROPERTY MARKET REPORT 2018

75 Residential properties Multipliers Multipliers * Apartment building (inventory) average Apartment building (inventory) prime Apartment building (newbuild) average Apartment building (newbuild) prime * Forecast of market players Source: bulwiengesa AG Low interest rates help raise demand for home ownership Irrespective of activities by municipalities in terms of social housing, the ongoing low interest rates are enabling many sections of the population to consider the prospect of buying their own home. However, low interest rates, high demand and a restricted supply is a combination which also helps boost house prices, not only in Hannover. On average, the price across all building age categories (not including newbuilds) actually only climbed by 1.3 % (detached single and double family houses) and 0.5 % (terraced houses and semi-detached houses) respectively. Overall the number of contracts evaluated by the expert panel is actually stagnating or falling. Cost of home ownership rising In 2017 the average price for a detached single-family house climbed in Hannover (building age category ) to 543,000 (previous year 470,000). 18 The average purchase price for a terraced or semi-detached house rose to 355,000 (previous year 322,000). 18 See also expert panel for property values Hameln- Hannover, Property Market Report Report presents average residential space and total purchasing prices. This situation has resulted in those seeking single family homes and terraced houses shifting their sights to the alternative of larger apartments offering sufficient space and rooms. Here again, according to the expert panel the average prices have climbed by around 8.4 % and, depending upon age category, now range between 1,728 (built between 1950 and 1977) and 4,249 (built after 2015) per m 2. Overall in 2017 the Region saw transactions for apartments and houses reach a total value of around 2.22 billion With respect to the total property transactions in the submarkets of residential and part-ownership, detached single and double-occupancy house, terraced houses and semi-detached houses and apartment houses (inventory and newbuilds). Expert panel for property values Hameln-Hannover, RESIDENTIAL PROPERTY MARKET 75

76 Top prices possible for top quality owner-occupied apartments Revenues achieved from the sale of well-situated, higher quality apartments in newbuilds will climb on average by 150 (plus 4 %) to 3,950/m 2, peaking at 150 (plus 2.7 %) to 5,650/m 2. The multipliers for inventory apartments will develop positively (18 on average, 23.5 prime), while market players estimate that prime newbuilds, depending upon location and furnishings, may attain multipliers of up to 26.5 (on average 22.5). Rent index 2017: Rental prices climb in Hannover by 5.5 % Hannover Region last presented an updated rent index in early 2017 for the communities in the Region. Overall the average basic net monthly rent (weighted according to area) in State Capital Hannover has risen by 0.34 or 5.5 % per m 2 residential space to 6.51/m 2. For a large apartment, 85 m 2, the rent index specifies a rent of 11.33/m 2 for top quality furnishings and location (with respect to the top value, a plus of 0.63 or 5.9 % compared with 2015) See rent index State Capital Hannover 2015 and The current rent indices for individual regional municipalities are available as downloads at Rents in prime segment continue to climb The estimates of the property report project group reflect in general the figures available from the rent index in the higher priced segments. In Hannover city the rents and purchase prices for top quality apartments in multi-family units in good and very good locations again climbed significantly in 2017/2018 in view of the market players. In the case of the re-letting of well-located and as new inventory apartments, this indicates that 2018 will see rises of up to 0.40 (plus 3.2 %) to a price of For apartments in newbuilds, rents are expected to climb by 0.50 to (plus 3.3 %). Growing market regional in character, with apartment buildings trending There are many new projects currently in progress or in planning of which apartment buildings have gained significantly in share. Over the medium term, the city s objective is to construct a minimum of 25 % as publicly funded apartments, approx. 25 % as owner-occupied projects (both single-family detached and terraced housing together with a large fraction of apartments) with some 50 % comprising privately financed rental apartments. The principle at work here is that the new buildings should have a range covering all housing types and demand groups in order to bind the population across all income and age groups to Hannover over the long term. Major newbuild project in the starting blocks The city of Hannover issued building rights for around 1,600 apartments in the course of 2017 alone. The largest current residential housing projects in Hannover are at Kronsberg-Süd (3,500 units) and the Wasserstadt in Limmer (1,800 units). IN 2017 HANNOVER CITY CREATED NEW BUILDING RIGHTS FOR AROUND 1,600 APARTMENTS. 76 PROPERTY MARKET REPORT 2018

77 A triangular plot in the Südbahnhof area is the site from the Dreiklang project: a joint effort of project developer Aurelis Real Estate working with investor hanova. The grounds of the former goods station in the city s Südstadt district are the site for 140 new apartments of various sizes, with 40 apartments publicly funded. The former station grounds have evolved into a popular residential area and an attractive location for business and office applications. RESIDENTIAL PROPERTY MARKET 77

78 meravis property group is collaborating with the Wasserstadt Limmer project development organisation to erect 116 apartments and a business unit during the first building phase of the Wasserstadt Limmer urban project. Completion is scheduled for The housing project am Läuferweg has been designed for Gundlach by architect Helmut Rentrop. The concept is for 10 residential units in two blocks, situated directly on the Mittelland canal. Both buildings will be constructed with particularly sustainable building materials, the homes will have roof terraces or gardens and be free of barriers. 78 PROPERTY MARKET REPORT 2018

79 The re-configuration of the Heinrich-Köhler-Hof courtyard in Vahrenwald is presently one of the largest building projects of the Spar- und Bauverein housing cooperative. By the end of 2018 this site between the roads Moorkamp and Melanchtonstraße will offer 90 modern residential units of between two and four rooms. The first of three "nanos apartment complexes" with 117 micro-apartments has been completed on the Kopernikusstraße. The hanova housing company is planning to build a total of around 300 micro-apartments. The primary tenant target group is students. RESIDENTIAL PROPERTY MARKET 79

80 The Hannover architectural office of [pfitzner moorkens] was commissioned by Gundlach to plan the rededication and newbuild of the former Raupert yard. The conversion of this historic farmyard to create a small residential community as part of a rezoning scheme is seen as a template project for many similar small farm fragments located along the margins of the city which, following termination of the agricultural usage, are awaiting renewal and revitalisation. The Raupertshof yard will ultimately comprise 19 residential units under private ownership. Am Kastanienweg in Laatzen is the site where DELTA BAU is building terraced houses in various phases. Following on from the seven houses at Kastanienweg 28, a further nine units are now in the planning phase Am Seestädter Platz in Langenhagen-Kaltenweide is the location of two apartment buildings offering 28 owner occupied apartments to a high standard. The second building phase will comprise two more apartment buildings with 28 rental apartments. 80 PROPERTY MARKET REPORT 2018

81 The Deutsche Reihenhaus AG is building a total of 15 terraced houses at "am Hirtenbach" in Wettbergen. The next major project is scheduled in Gehrden where the Colognebased principal acquired the former Vorwerk brownfield site and plans to build 154 residential units, including apartments. The grounds of the former Beckmann nursery are now the location of 40 family-friendly terraced and semi-detached houses. Designed by the agsta architect s office, the semi-detached houses and housing blocks are grouped to form two residential courtyards including children s play equipment to create an enriched communal space and encourage neighbourly development. RESIDENTIAL PROPERTY MARKET 81

82 KSG Hannover is planning to build approx. 130 new, barrier-free apartments in the town of Ahlem, all featuring modern, contemporary floor plans. The KSG concept is to create modern, affordable homes for all age groups. The USTRA e.v. pension fund is collaborating with meravis to build 139 apartments and a child day-care centre in the Vahrenwald district also to provide ÜSTRA employees with modern but affordable accommodation in a central city location. The building is a modern design using state of the art ecological wood construction techniques. 82 PROPERTY MARKET REPORT 2018

83 Selected residential projects No. Project Investor, developer and/or user Housing units total project Completion 2017/2018 Of which detached single and double occupancy houses, terraced houses Of which apartments 1 Student halls of residence Chicago Lane, Bemerode Bauplan GmbH Landwehr-Quartier, Hemmingen GlaserProjektInvest GmbH, INTERHOMES AG, Fischer-Bau GmbH Eichenpark I, Langenhagen HELMA Wohnungsbau GmbH, KSG Hannover GmbH nanos Kopernikusstraße, Nordstadt hanova Lister Leben, List HELMA Wohnungsbau GmbH Heinrich-Köhler-Hof, Vahrenwald Spar- und Bauverein eg Pod Be green, Groß-Buchholz STRABAG Real Estate GmbH Trautenauer Hof, Kirchrode hanova Wohnen am Maschsee, Südstadt Gundlach GmbH & Co. KG Heinrich-Böll-Weg, Misburg hanova Alte Döhrener Straße, Südstadt Theo Gerlach Wohnungsbau- Unternehmen GmbH & Co. KG Hanomag 8, Linden Dannenberg Immobilienhandel GmbH cube4, Misburg meravis Bauträger GmbH Levester Straße, Ricklingen Spar- und Bauverein eg Neues Dichterviertel, Misburg Weber Massivhaus GmbH, hanova Seelhorster Wohnhöfe, Seelhorst Gundlach GmbH & Co. KG Büntekamp II, Kirchrode Delta Bau AG Nikolai-Quartier, Limmer Spar- und Bauverein eg Bussestraße/ Groß-Buchholzer Kirchweg, Groß-Buchholz Spar- und Bauverein eg Marstall, Mitte HOCHTIEF Infrastructure GmbH Building Hannover Merianweg, Groß-Buchholz Spar- und Bauverein eg Tizian Atelier, List meravis Bauträger GmbH RESIDENTIAL PROPERTY MARKET 83

84 No. Project Investor, developer and/or user Housing units total project Of which detached single and double occupancy houses, terraced houses Of which apartments 23 Sternenaue, Laatzen-Rethen INTERHOMES AG Wohnpark am Mittelfelde, Mittelfeld 25 Wohnen an der Matthiaskirche, Groß-Buchholz Deutsche Reihenhaus AG Gundlach GmbH & Co. KG Am Hohen Ufer, Mitte HELMA Wohnungsbau GmbH Wohnpark Am Hirtenbach, Wettbergen Deutsche Reihenhaus AG Läuferweg, Groß-Buchholz Gundlach GmbH & Co. KG Kastanienweg, Laatzen Delta Bau AG HanomagLofts II, Linden agsta 6 6 Under construction and/or detail construction preparation (construction to start in 2018) 31 Wasserstadt (1st BP), Limmer Wasserstadt Limmer Projektentwicklung GmbH, meravis Bauträger GmbH 32 Vitalquartier, Seelhorst Hanseatische Immobilien Treuhand GmbH & Co., Norddeutsche Wohnbau GmbH, Spar- und Bauverein eg, Heimkehr eg Herzkamp, Bothfeld Gundlach GmbH & Co. KG Constantin-Quartier, List Wohnkompanie Nord Kleefelder Hofgärten, Kleefeld 36 An der Langen Weihe, Laatzen Theo Gerlach Wohnungsbau- Unternehmen GmbH & Co. KG Hanseatische Immobilien Treuhand GmbH & Co Listholzer Uferblicke, List Gundlach GmbH & Co. KG, WGH Herrenhausen eg Dreiklang, Südstadt hanova, Aurelis Real Estate GmbH ÜSTRA-Quartier, Vahrenwald Versorgungseinrichtung der ÜSTRA e. V., meravis Bauträger GmbH Adolf-/Molthan-/Kommandantur-/Mittelstraße, Calenberger Neustadt 41 Quartier Hans-Paulmann- Straße, Ahlem 42 Quartier Memeler Straße, Ronnenberg-Empelde 43 nanos Klagesmarkt, Nordstadt Dannenberg Immobilienhandel GmbH KSG Hannover GmbH KSG Hannover GmbH hanova PROPERTY MARKET REPORT 2018

85 No. Project Investor, developer and/or user Housing units total project Of which detached single and double occupancy houses, terraced houses Of which apartments 44 Klingenkampe, Kirchhorst/ Lahe BBH Immobilien GmbH Bredero, Oststadt Dannenberg Immobilienhandel GmbH Siebenschön, Heideviertel hanova, HOCHTIEF GmbH Eichenpark II, Langenhagen Saccullo Massivhaus GmbH Level 4, Südstadt hanova Quartier Wiesenau, Langenhagen 50 Sauerbruchweg, Groß-Buchholz KSG Hannover GmbH hanova Neues Wohnen, Laatzen meravis Bauträger GmbH Willi-Blume-Allee, Misburg HOCHTIEF Infrastructure Seestädter Platz, Langenhagen KSG Hannover GmbH Neue Südhöfe, Südstadt Schmid Immobilien Gruppe GmbH & Co. KG Zweibrückener Straße, Kirchrode Gundlach GmbH & Co. KG Podbi Places, List HELMA Wohnungsbau GmbH Teilerhöfe Bothfelder Kirchweg, Bothfeld 58 Kaltenweider Platz, Langenhagen Gundlach GmbH & Co. KG KSG Hannover GmbH Forstkamp, Misburg KSG Hannover GmbH Raupert Hof, Bemerode Gundlach GmbH & Co. KG KronsHoop, Bemerode hanova, Weber Massivhaus Kastanienweg, Laatzen Delta Bau AG 9 9 In planning, start of construction not before Kronsberg-Süd/Projekt areal Mitte, Bemerode 64 Wasserstadt (weitere BA), Limmer Delta Bau AG, Gundlach GmbH & Co. KG, hanova, KSG Hannover GmbH, meravis Bauträger GmbH, Spar- und Bauverein Hannover eg Wasserstadt Limmer Projekt entwicklung GmbH 1, RESIDENTIAL PROPERTY MARKET 85

86 No. Project Investor, developer and/or user Housing units total project Of which detached single and double occupancy houses, terraced houses Of which apartments 65 Kronsberg-Süd/Projekt areal Nord, Bemerode GWH Bauprojekte, Liemak Immobilien, Klosterkammer Hannover, HOCHTIEF Infrastructure, Wilhelm Wallbrecht GmbH & Co. KG, Theo Gerlach Wohnungsbau-Unternehmen GmbH & Co. KG und HELMA Wohnungsbau GmbH 1, Kronsberg-Süd/Projekt areal Süd, Bemerode 67 Gartenstadt Hannover-Nord, Sahlkamp 68 Niederländischer Pavillon, Bemerode Stadt Hannover 1,000 NLG mbh 575 Wohnkompanie Nord Urbanes Grün, Badenstedt Hannover Region Grundstücksgesellschaft (HRG) mbh, hanova, KSG Hannover GmbH Sorst-Gelände, Hainholz Aragon Buchholzer Grün, Groß-Buchholz hanova Zwei, List Gundlach GmbH & Co. KG Steinbruchsfeld Ost, Misburg Stadt Hannover Neue Mitte, Garbsen Theo Gerlach Wohnungsbau- Unternehmen GmbH & Co. KG ehem. Kesselfabrik, Limmer Hegu GmbH ehem. Landesfrauenklinik, Nordstadt BPD Nikolaistraße, Nordstadt Gundlach GmbH & Co. KG Köbelinger Markt, Mitte Stadt Hannover Guthe Höfe, Döhren Hegu GmbH, Heimkehr Wohnungsbaugenossenschaft nanos Körnerstraße, Mitte hanova Lathusenstraße, Kleefeld meravis Bauträger GmbH Wohnquartier Ohehöfe, Calenberger Neustadt hanova Maschseeherz, Südstadt WGH Herrenhausen eg Lavesstraße, Mitte meravis Gewerbeimmobilien GmbH Döhrbruch, Kirchrode BBK Bau GmbH PROPERTY MARKET REPORT 2018

87 Großburgwedel Selected residential property projects 58 A 352 B A Garbsen Langenhagen B 522 A 37 B A2 E Lein e B M i t te llandkanal B B B 441 HANNOVER B Key B B Under construction/ construction preparation (building start 2018) B 65 B Completions 2017/ Gehrden In planning, not scheduled to commence before B Airport 1 Tram 2 Ronnenberg Railway line 1 2 B 443 B3 Exhibition grounds km Lein e Hemmingen A N Laatzen 23 PROPERTY MARKET REPORT B 443 B6 RESIDENTIAL PROPERTY MARKET

88 The Spar- und Bauverein Hannover has completed the construction of 35 family-friendly apartments on a corner plot between Bussestraße and Groß-Buchholzer Kirchweg. The 2- to 4-room apartments are between 62 and 125 m 2 in size. Hannover s largest housing cooperative has invested approx. 10 million in this project. RESIDENTIAL PROPERTY MARKET 89