'G-REITs will dominate German investment market'

Real estate investment trusts (REITs) will become the dominant investment vehicle in Germany in the next few years, chief executive Olivier Elamine of Alstria Office REIT told PropertyEU at the Mipim trade fair in Cannes. Elamine forecast that three or four large G-REITs will emerge in the German market as soon as stability returns to the financial markets.

'The reason why real estate investment trusts did not take off in Germany in the first place was due to the difficulty of launching an Initial Public Offering in this climate,' he said. Alstria Office REIT was the first company to convert to REIT status after the new tax-efficient structure was introduced in Germany two years ago. The country now has two REITs: Alstria and Fair Value.

Elamine said Alstria is not planning any acquisitions this year and does not expect to carry out any disposals. 'If we can sell, we will, but today this is very difficult,' he said. In 2009, Alstria will focus on managing its 89 assets and refurbishing two leased properties in Hamburg, for a combined investment of EUR 43 mln.