Montreal, Canada – Canadian-based Ivanhoe Cambridge and German-based mfi Management für Immobilien AG (mfi AG) have partnered in the acquisition of two properties for development located in Pasing, a suburb of Munich, and Leipzig. The total investment represents some €408 million (CAD $592 million). The two partners each hold 47%. mfi AG will develop the properties on behalf of the joint venture.
“Through these two acquisitions, Ivanhoe Cambridge is increasing its portfolio in Germany in some of the strongest commercial cities in the country,” said René Tremblay, President and Chief Executive Officer of Ivanhoe Cambridge. “This move is aligned with our broader strategy of creating value by diversifying our portfolio internationally and through development projects. Ivanhoe Cambridge has an established partnership agreement on several other properties with mfi AG, one of Germany’s leading retail-property owners and developers. mfi AG’s local experience and insight combined with Ivanhoe Cambridge's shopping centre expertise will ensure that Pasing Arcaden and Leipzig Arcaden are positioned at the forefront of retailing in their markets.”
Ivanhoe Cambridge and mfi AG’s first joint venture in the German market was concluded at the end of 2005 when the two companies formed a strategic alliance to own, manage and develop Zwickau Arcaden (Zwickau), Paunsdorf Center Arcaden (Leipzig) and Wilmersdorfer Arcaden (Berlin) in which Ivanhoe Cambridge holds interests of 92.5%, 94.8% and 92.5% respectively. In 2006, the two also acquired Düsseldorf Arcaden, a shopping centre currently in development in which Ivanhoe Cambridge holds a 92.5% interest.
“We are thrilled to partner with Ivanhoe Cambridge to develop these leading shopping destinations to meet the needs of consumers in Munich and Leipzig,” said mfi CEO Matthias Böning.
About the properties
Pasing Arcaden, which will include 31,700 sq. m. (341,200 sq. ft.) of retail space, will be built adjacent to the train station of Munich-Pasing on the western side of Munich. The project targets a mix of high-end tenants, including a number of major fashion retailers and a supermarket, and will feature two storeys of residential space, a restaurant terrace converted from the old Burklein Station and more than 600 parking spaces. The strategic location of the project as well as its quality has already attracted the interest of several retailers. Construction on Pasing Arcaden is expected to commence in spring 2008 with a projected opening in early 2010.
Located at the northern limit of the downtown area of Leipzig (Brühl district) in the "Promenadenring" area, Leipzig Arcaden will be the result of a complete redevelopment of existing buildings located on the main ring road and near the central train station. Alongside 45,394 sq. m. (489,000 sq. ft.) of retail space over three storeys, the centre will offer a residential section, a theatre and a kindergarten, and will be served by 950 parking spaces. Once completed, the commercial offering of Leipzig Arcaden will complement the retail market in Leipzig. Construction is to begin in spring 2008 with an opening slated for spring 2010. With this transaction, Ivanhoe Cambridge will co-own two shopping centres in this city of approximately 500,000 inhabitants.
About Ivanhoe Cambridge
Ivanhoe Cambridge is a pre-eminent Canadian-based global property owner, manager, developer and investor, focusing on high-quality shopping centres located in urban areas. Beyond its strong Canada-wide presence, the Company is also active in the United States, Mexico, Brazil and Europe, where it owns a number of properties either by itself or through joint ventures with prominent real estate partners. Abroad, Ivanhoe Cambridge also holds interest in several shopping centre development and management companies and maintains offices in Europe and Asia.
Its real estate portfolio consists of almost 46 million square feet of retail space and includes some 70 regional and super-regional shopping centres. As at December 31, 2006, the market value of Ivanhoe Cambridge’s assets reached CAD $12.2 billion.
Headquartered in Montreal, Quebec, Canada, Ivanhoe Cambridge is a principal real estate subsidiary of the Caisse de dépôt et placement du Québec, one of the largest institutional fund managers in Canada. Amongst its shareholders, the Company also counts four prominent Canadian pension funds.
About mfi Management für Immobilien AG
Management für Immobilien AG (mfi AG), Essen, has made a name for itself both nationally and internationally as a developer and manager of downtown shopping arcades. The Company currently has 25 arcades and shopping centres under management, in construction or in refurbishment. It offers a full range of real estate project development services, including general planning, realization, leasing and centre management and, most recently, asset management.
mfi AG is the co-owner of all the shopping centres it has developed and it manages them to ensure that the properties maintain and increase their value. Since it was founded in 1987, mfi has developed and managed roughly 1.5 million square metres of commercial and retail space. An additional 450,000 square metres is currently in the planning or construction stage. The project volume of the properties launched on the market and managed in the long term by mfi amounts to more than €3.9 billion.