Value of the portfolio increased by 3.6 %
In the financial year 2016, IG Immobilien achieved positive results in all business segments. Last year, the company as a leading Full Service Provider of real estate, generated a Group operating performance of some 42 million Euro (excluding operating costs) and kept the profit more than stable. At the end of 2016, the real estate portfolio of 34 owned properties represented a market value of 737 million Euro. This is an increase of 3.6 percent. The company also demonstrated a record-breaking occupancy rate, which averaged 96 percent.
On July 31st, 2017 IG Immobilien published their annual report for the year 2016. It is available for download here (only in German) and confirms a highly positive result, a pleasing performance and a very satisfactory revenue situation for the IG Group of Companies over the past year. The good results can be attributed in part to the positively developing real estate markets in Austria and other European countries, and on the other hand to the currently prevailing low-interest rate. In addition, IG Immobilien was able to achieve a strategic optimisation of the revenue and risk sharing through the successful sale of equity interests. The results were further improved with targeted investments in existing properties and extensions of the portfolio.
‘We have fulfilled our expectations for the financial year 2016 very well. Our properties perform well above-average on a national and international level and the market value of our real estate portfolio has risen significantly. Major projects such as the ‘GARTENPARK am kleinen Anninger’ in Mödling, Lower Austria were completed last year as planned and fully rented in record time after the opening. The high demand confirms the high living quality of our properties that we can offer to our tenants. The impressive occupancy rate of 96 percent in the previous year goes to show how much trust our customers place in us’ reveal Ing. Hermann Klein and Karin Assem-Honsik, managing directors of IG Immobilien as their gratifying result. ‘It is also important to highlight our company's certification for ethical conduct in the previous year, which was awarded by the Austrian Society for Sustainable Real-estate Management (ÖGNI)’.
With 34 owned properties in Austria and abroad and with owned rentable spaces of approximately 224,000 sqm, the market value of IG Immobilien's portfolio increased by 3.6 percent to EUR 737 million in 2016. The strategy of serving five different asset categories paid off again: The balanced mix of apartments, offices, two inner city shopping centres, attractive retail spaces and hotel real estate produced a good 34 million Euro in rental income and the performance of the company's real estate properties significantly exceeds the industry average. This is confirmed by the independent benchmark comparison of IPD (International Property Database). The Total Return of the Austrian (7.6 %) as well as the international portfolio (7.1 %) of the IG Immobilien Group of Companies performed significantly better than the industry benchmarks (5.7% and 5.3 %). The average qualitative vacancy rate only amounted to 3.97 percent in 2016, while in 2015 it was still 4.84 percent.
Revaluation of existing properties
In 2016, IG Immobilien also benefited from taking responsibility themselves for the performance of all services related to the real estate. The bundling of the real estate services in the company strengthened the stability and due to the close cooperation of real estate management, facility management, project development and sales, numerous existing properties were efficiently renovated, modernised and thereby significantly improved. Hence, in the financial year 2016, important measures were also taken to maintain the high quality standard of the portfolio, to minimise vacancy rates and to make the properties more attractive. The revaluations ranged from technical updates and upgrades through to increases in and adaptations of floor space and layout plans: At the City Centre Amstetten shopping centre, for example, a comprehensive refurbishment commenced, whereby in 2016 the parking facilities were renewed in a preliminary step. In Amsterdam, commercial space has been redesigned and converted into serviced apartments.
New projects with added value
Since 2016 and the launch of the ‘Prater Glacis’ project, IG Immobilien has continued its commitment and development activities in Leopoldstadt in Vienna. IG Immobilien is developing three new properties, a hotel, a hostel, serviced apartments and modern office space, on a 9.500 sqm area in the Perspektivstraße, close to the Prater in Vienna. To meet the demands of modern lifestyles, to contribute significantly to the revaluation of the area and to offer added value to the public, the project planning already participated in a quality-assurance architectural competition in 2016. The winning projects are now identified and the ground breaking should take place in 2018.
As a basis for the ‘Prater Glacis’ project, but also for all other new developments, in the 2016 financial year IG Immobilien once again focused on comprehensive market analyses in order to be able to precisely address the current and future needs of the tenants. The focus was predominantly on new, intelligent spatial concepts, the use of alternative energy-generation methods, accessibility, sustainability and the use of natural raw materials. For many years, all new projects in the portfolio of IG Immobilien have been certified and in the autumn of 2016, GARDENPARK was awarded the ‘Gold’ DGNB certificate.
Services for a strong future
As a Full Service Provider, IG Immobilien plays a leading role in the industry with an innovative range of service offerings. Numerous new services, products and actions underline this demand - in 2016, the employees in shopping centres participated in a coaching and training program to increase customer orientation. The initiative showed first signs of success in both successful shopping centres of the IG Immobilien Group: The City Centre Amstetten increased its visitor frequency by 2 percent and the shops generated a stable turnover of 73.3 million Euro - the Rosenarcade Tulln increased its turnover by 12 percent to 44.7 million Euro.
IG Immobilien also uses new, customer-friendly and efficient methods for marketing purposes - brand new virtual viewings and tours of vacant apartments and offices available for sale. The limitation of operating costs have proved to be a future-oriented success concept pioneered by IG Immobilien. Surveys confirmed that this transparent cost structure was very positively received by the tenants.