Corporate News

24/10/2012 | Corporate News

Fair Value REIT-AG is successful in converting a Pinneberg bank building into a health centre


Munich, October 24, 2012 – Fair Value REIT-AG has converted 60 percent of the total area of a bank building in Pinneberg to new usage in close cooperation with the previous tenant Sparkasse Südholstein. Overall, new rental agreements have been concluded with five doctor’s practices, each with a contract term of ten years, at the property Damm 49 which boasts around 1,900 square meters of floor space. In addition, a rental agreement for 15 years from October 2012 has been signed with a pharmacist.


“This means that the majority of the available space is already secured for health-related usage in the long-term, something which will determine the future character of the property as a doctor’s building and health centre,” explains Frank Schaich, CEO of Fair Value REIT-AG. “With the support of Sparkasse Südholstein, which is contractually bound to the space which is not re-let until December 2012, we were able to start marketing the property for the alternative usage as a health centre in good time. This has allowed us to find some new tenants ahead of time and therefore achieve a smooth re-letting process, avoiding loss of rent. We believe the renovation costs are good value considering the sustained follow-up usage and the future approx. ten percent higher rental income.”


Given the current demand for medical and therapy space in the property located near the town centre, the Management Board of Fair Value REIT-AG believes that successful repositioning through complete re-letting of the property is now tangibly close.


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A REIT – Higher Return for Investors

REIT stands for Real Estate Investment Trust. The assets of these listed companies in Germany consist mainly of real estate and investments in other real estate companies.


At the international level, REITs have been established for many years. On 1 January 2007, they were introduced in Germany as well.


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Fair Value REIT-AG