Orco Property Group, together with the Morgan Stanley Real Estate Fund V (MSREF V), is to take over state-owned Gewerbesiedlungs-Gesellschaft (GSG) for EUR 440 mln. With about 800,000 m[sup]2[/sup] commercial and light industrial space, GSG is the biggest provider of commercial property in the German capital and is presently owned by the Investitionsbank Berlin (IBB).
Orco Property Group, together with the Morgan Stanley Real Estate Fund V (MSREF V), is to take over state-owned Gewerbesiedlungs-Gesellschaft (GSG) for EUR 440 mln. With about 800,000 m2 commercial and light industrial space, GSG is the biggest provider of commercial property in the German capital and is presently owned by the Investitionsbank Berlin (IBB).
The sale of state-owned GSG was approved on Thursday by the Berliner parliament as part of the Senate's bill of March 20, 2007. The transaction still remains subject to antitrust agreement. 'The acquisition of GSG is a one time chance for the joint venture between Orco and MSREF V to further develop its property portfolio. Moreover we are taking.over an experienced asset manager.
GSG has important resources (infrastructure) to share with us. In the future, it will work as an integral part for the whole group to support our expansion strategy', said Rainer Bormann, Ceo of Orco Germany. 'GSG perfectly supplements our existing business fields. At the same time, GSG will benefit from the expertise and network of the Orco group that operates on an international level.
Through this acquisition Orco emphasizes its long-term commitment to the German capital. Additionally, it is our view that the involvement of Morgan Stanley is a further indication of the attractiveness and future sustainability of the Berlin location'.
