– VERIANOS confirms earnings corridor
– Fund business further expanded
– Positive development will be reflected in the earnings figures for the second half of the year

VERIANOS Real Estate Aktiengesellschaft confirms the earnings corridor of EUR 0.8 to 1.2 million planned for the 2015 financial year. The result of the first half of 2015 was typically negative for the industry. The main transactions are mostly in the second half of the year.

In the course of 2015, the SMC 1 launched a fund for international semi-professional investors, for which the first closing has already taken place. Two properties have already been acquired for the portfolio and further acquisitions are in advanced negotiations. The fund is to reach a target volume of around 50 million euros.

The implementation of a second fund with a target volume of around € 80 million is also at an advanced stage.

Current co-investments and residential developments are doing well, in some cases better than predicted in the original plans.

In order to generate income in the future with investments in the current market environment, strict discipline must be maintained in the acquisition of new properties. All investments must also be able to hold their ground in a market correction.

In parallel with the Investment division, the expansion of the consulting business is being driven forward in order to broaden the mandate base.

The consistent cost management of recent years has been continued. Among other things, potential lies in a renewed relocation of the Cologne office. This could potentially cut office costs by half.

To increase awareness of the share and the group of companies, the company will be presenting itself for the first time in November 2015 at an investor conference in Milan.

VERIANO’s “Professionals’ Real Estate Investment Report 2015” study shows: Low interest rate environment continues to challenge institutional investors / USA as the market with the greatest potential

Every year, VERIANOS conducts a survey on assessments of macro and real estate developments among international real estate experts and executives. The results of the survey are summarized by the independent consulting and investment boutique in the Professionals’ Real Estate Investment Report study – a comprehensive overview of real estate and macroeconomic trends.

The study identifies the following trends:

• The US continues to position itself as a global engine of growth, the outlook for Germany is seen as stable and a positive development is expected for Great Britain as well
• Germany, the USA and Great Britain are the preferred locations of German institutional investors for real estate investments. In addition to the economic outlook, the high degree of transparency and professionalism of these markets also contribute to this
• For foreign investments, German institutional investors prefer indirect forms of investment, whereby depending on the size of the investor, theme- or sector-specific funds but also broader diversified products are preferred
• The low interest rate environment is seen as a sustainable phenomenon and leads to a general increase in the value of all asset classes – a complete decoupling of the real economy and capital markets is a risk of this development
• Against the background of the price development of core real estate, there is a great interest in value added / opportunistic investments – as evidenced by the increased transaction volume

>> DOWNLOAD THE STUDY

The study will be collaborative with M&G Real Estate, London, performed and evaluated. M&G Real Estate is the real estate investment arm of the asset manager of M&G, which belongs to Prudential plc, one of the UK’s leading insurance groups. With approximately.  EUR 29,5 Billion assets under management, 235 employees and a 150-year history M&G Real Estate among the top 10 real estate investors in Europe and the top 25 worldwide.  VERIANOSwas from M&G Real Estate As a partner for addressing institutional investors, it also mandates, supports and coordinates the market entry of the British real estate manager in Germany.

VERIANOS is a group-independent real estate partnership focusing on the most important European markets. It offers investment and advisory solutions to institutional investors, financial institutions, fund managers and semi-professional investors. From Germany, teams of experienced specialists support customers throughout Europe. Additional local presence exists in Luxembourg, Madrid and Milan.

Contact Press:
Stefan Reidt
Director Corporate Office

VERIANOS AG
Bethmannstraße 56, 60311 Frankfurt am Main
T +49 69 697 68 88 234
stefan.reidt@verianos.com

The goals set for the financial year 2014 in relation to our financial performance indicators such as revenue growth, reduction of personnel and administrative costs and the annual result were achieved.

The Group has achieved an improved result of TEUR 1,222 compared to the previous year. Further information will be provided during our Annual General Meeting on July 16, 2015.

Key figures for the 2014 financial year: