Fair Value Immobilien has become the second company to convert to the German equivalent of a tax-friendly real estate investment trust (REIT). The company focuses on the acquisition of stakes in closed-end real estate funds and the direct acquisition of commercial properties. It was registered as a G-REIT on Thursday and adopted the name Fair Value REIT-AG.
Fair Value Immobilien has become the second company to convert to the German equivalent of a tax-friendly real estate investment trust (REIT). The company focuses on the acquisition of stakes in closed-end real estate funds and the direct acquisition of commercial properties. It was registered as a G-REIT on Thursday and adopted the name Fair Value REIT-AG.
The company is exempt from corporation and trade tax retroactively from 1 January this year. Its shares are listed on Frankfurt Stock Exchange's regulated market (Prime Standard) but will be traded on the new REIT segment in future.
Fair Value has interests in a diversified portfolio of 52 properties with a total rental area of more than 450,000 m2. Of the total market value of EUR 600 mln, Fair Value's share comes to EUR 246 mln. In addition, Fair Value has a portfolio of 33 commercial properties, mostly bank premises.
Hamburg-based Alstria Office became the first G-REIT last month. Founded in January 2006 by a subsidiary of Captiva Capital Partners, Alstria owns 71 properties valued at EUR 1.6 bn and the company intends to invest a further EUR 500-750 mln in property over the next three years.
