2019/2020 Review Insight Perspective - FAKT Group Company Report - Fakt AG.com
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Review
Insight
Perspective
FAKT Group Company Report
2019/2020
2 FAKT Group 2019/2020
3
FAKT Group 2019/2020
Real Estate and Capital Markets Environment
Real Estate
Capital Markets
Energy and Agriculture
Services
4
FAKT Group 2019/2020
content
6
Greetings of the Advisory Board
7 - 11
Preface
12 - 17
FAKT Group
18 - 19
Substantial Holdings
5
FAKT Group 2019/2020
20 - 24
Real Estate and Capital Markets Environment
25 - 55
Real Estate
56 - 58
Capital Markets
59 - 73
Energy and Agriculture
74 - 76
Services
77
Conclusion
6 FAKT Group 2019/2020 Greetings of the Advisory Board A Powerful Path What began a few years ago as an apparently extremely daring start up in the fields of real estate and finance – FAKT AG’s aspiration to go new ways with new ideas in the Ruhr Area, to also revitalise property sites, to establish new cooperations and gain partners from miscellaneous branches – has in the meantime led to a sustain- able platform with regard to content, function and finance. Important lighthouse projects in Essen, Herne, Bochum, Marl and other sites in the Ruhr Area are show cases for the enhancement of these sites and for the trustful cooperation with the respective local authorities. At present, the next steps towards growth are being taken, both in a national context with large-scale projects in Saxony Anhalt and North Rhine Westfalia and in an international context with the “Landmarkenprojekt” in Hegyeshalom in north western Hungary. This area is close to the Austrian/Hungarian border, covering approximately 330 hectares with a use combination including power generation, logistics, agricultural production, fish farming etc. The geographical position is ideal with a direct connection to the Vienna to Budapest railway line and immediate motorway access to Budapest, Vienna and Bratislava. We monitor and accompany this courageous growth of the FAKT AG with conviction, confidence and great approval. Dr. Helmut Linssen / Garrelt Duin (Co-Chairpersons Advisory Board FAKT AG)
7
FAKT Group 2019/2020
Good projects
start with a
good idea.
Prof. em. Hubert Schulte-Kemper
Preface
Ladies and gentlemen, We have also successfully realised the letting of the
Dear business friends, area Marler Stern in record time.
In good tradition, we are pleased to present our fifth The basis for our success in letting is to be found in the
company report. As in previous years, we have com implementation of future-oriented development con-
piled insights, reviews and perspectives which are parti cepts for the real estate sites which are consistently
cularly exciting and challenging for us. We are convin- geared to the requirements and desires of our existing
ced that all these activities will find great appreciation and our potential tenants.
with our business partners both at home and abroad in
a further eventful and successful year. The FAKT Group continues to be focused on and com-
The past months were shaped by the extensive rental mitted to the metropolitan region of the Ruhr. Here, the
activities in those properties of the FAKT Group that scarcity of modern-oriented office units offers ex
were taken into our portfolio in the years 2018 and tremely good business parameters for growth across
2019. the miscellaneous sites.
The total rental volume of these properties lies by The Business Metropolis Ruhr GmbH presented a
approximately 150,000 square meters, whereby the lar- market survey in the past weeks which completely re-
ger share was developed and rented in the second half flects our experience related to the factual implemen-
of last year and in the first half of this year. tation of development areas and properties to let.
Our focus in international business is set upon our
The properties RUHRTURM and RUHRTURM are com- 2
large-scale project in north western Hungary. The VIP
pletely let, the letting quota in SHAMROCKPARK is in status conferred upon us due to the geo-strategic
the meantime at approximately 85%, and in the last importance of the project, both honoured us and
year, we began letting at the FAKT Businesspark in Bo- encouraged us to exert all our energy toward realising
chum (ex Vonovia head office), and have already been a European landmark.
able to find high quality anchor tenants.
8
FAKT Group 2019/2020
The extent of our commitment in Hungary is
greatly reflected by a mutually desired coopera-
tion with E.ON SE (with respect to energy plan-
ning), conceptualisation of the green houses,
the implementation of a hotel as well as a shop-
ping area and a rest stop. In addition, discus
sions with various ministers, undersecretaries
of state, various institutions, universities, orga-
nisations and local authorities all greatly contri-
bute to moulding our activities in Budapest and
naturally at our site in Hegyeshalom.
Our cooperation with the political institutions at
both local and state level at home and abroad
are always trustful and future-oriented.
We seek to formulate our targets pragmatically
and to realise them transparently for all parties.
The trust bestowed upon us by our business
partners and customers fulfils us with gratitude
and charges us with confidence for the tasks fa-
cing us in the future.
In the development of building land, we have
been able to acquire interesting plots and have
set about planning the buildings. The realisation
of these projects is planned for approximately
the end of 2022.
The organisation and development of our exten-
ded business activities, e.g. our activities in our
project in Hungary or the acquisition of the Han-
sa Center in Bottrop, have led to a sustainable
expansion of our range. In addition, there is an
essential focal point at the moment set on the
further expansion of our property portfolio.
Thus, it becomes clear that we have exceeded
the number of construction projects than we
had originally planned.
The expansion of our company is also reflected
in the increase in our total number of employees,
the growing number of our business partners,
9
FAKT Group 2019/2020
bouring towns there is practically no such space
available. This situation clearly illustrates that the
importance of the Ruhr Area continues to grow and
that future growth will be mirrored by the increase in
the working population and the number of inhabitants
in the region.
The housing construction initiative mentioned earlier
will start on a large scale from the year 2021 onwards.
We are certain that the number of workers who will
have to be recruited as skilled labour from other Euro-
pean countries can only be recruited if respective
housing facilities are made available to them and their
families. The number of inhabitants in the Ruhr Area
will grow. Thus, housing construction is the right mea-
sure for infrastructure. In order to develop our housing
assets of over 10,000 housing units, we have set our-
our Supervisory Board and Advisory Board members selves a deadline of some three years and are making
as well as the growing public awareness of the FAKT every effort to acquire real estate in the Ruhr Area
Group both at home and abroad. based on our investment criteria respecting situation
and size. This project will be carried out in cooperation
Let us turn to the following aspects of our strategic with high-ranking partners and investors.
targets:
We plan to continue acquiring interesting and large- The implementation of our greenhouse idea in Oer-
scale business properties which have traditionally Erkenschwick will begin in autumn this year with the
always been important in the Ruhr Area. Here, we pursue preparation of the land for building. The erection of the
the idea that all important buildings with a great historic greenhouses in an area of approximately 10 hectares
company history will, after revitalisation and a sustain- was preceded by extensive acquisition work and the
able economic utilisation concept, still be able to exist, inclusion of all interested parties. In this manner, the
even in 30 years. In this manner we wish to document respective building lease could be drawn up; the clarifi-
just how manifold and sustainably the economic de- cation with the owners and the Regionalverband Ruhr
velopment of Germany was influenced by the Ruhr (RVR) is widely concluded.
Area and that it can continue to be so in the future.
In another German Federal State, we wish to conduct
Our target here is to attract and offer a solid platform a large-scale investment in the context of purchasing
for important companies, institutes, associations and and developing an area of approximately 1.2 million
public corporations to carry out their operations. The square meters. The contract negotiations have not yet
real estate market in the metropolis region Ruhr is al- been concluded. Nonetheless, we can say that the
ready today marked by a structural scarcity of high-qua- investment volume represents roughly a third of that
lity office space. For example, in Essen and its neigh- for our Hungarian project. The variety of different
10
FAKT Group 2019/2020
products planned for Hungary should also result on this reduction in financing costs. Secondly, the financing
new site. mix will become more diversified. Here, the usage of
As already stated, we shall continue to advance the ac- capital market-oriented financing instruments will be
quisition of commercial property and well reputed ad- in focus for our business e. g. bonds or promissory
ministration buildings with increased drive. The RUHR notes secured by land registry charge.
Immo AG, founded by the FAKT Group, will expand
upon the existing property assets at a current market The further education of our staff, particularly young
value of approximately 800 million Euros, as rapidly as executives, is fully in the focus of our personnel de-
possible. velopment work. In addition to in-house training, we
also offer e. g. in cooperation with universities and
Our new tenancy activities in the first half of this year academies, the opportunity to take part in external trai-
lie by some 40,000 square meters. The investment nings. The efficiency of our company should thus con
volume projected for existing units such as SHAM- tinue to increase by following the triad „recruiting
ROCKPARK or FAKT Businesspark Bochum etc. lies at further members of staff”, „upgrading qualifications
around 300 million Euros. through basic and further education” and “optimisation
Analogically to our partnership with E.ON SE, we in- of the infrastructure”.
tend, in future, to conceptualise and implement, within We should very much like to express our heart-felt
the framework of agreements with large companies, gratitude to all our staff, to the members of our Super-
the bundling of individual trades each for one company, visory and Advisory Boards as well as to our business
e. g. sanitary, heating, glass etc. In this manner, the friends for the efforts we have made together and
basis for trustful cooperation between the cooperation which have led to our success. It is our designated tar-
partners and the FAKT Group will be formed. This get to continue to pursue the path of entrepreneurial
means for us, that we only require one or two building trade we have chosen and to further successfully
co-ordinators for each building, but have no need to set advance in those areas mentioned in this company
up a building department within our company. report.
The expansion of modern organisational infrastruc- The corona pandemic poses an unexpected challenge
ture, to which we count the introduction of an efficient to people, health systems, companies and political ins-
document management system, provides an essential titutions throughout the world. With this in mind, the
support to our future company growth. Organisational active pursuit of our company targets with responsibi-
structures and workflow are continuously optimised lity and confidence are accorded even greater impor
and transparently documented for all members of tance. A short review of the development in the Federal
staff in a comprehensive organisation manual. Republic of Germany increases one’s awareness of
current events and, in addition, creates a perspective
The success in the area of letting represents the most for the future.
important value driver for the continued optimisation
of our financing facilities. Here, two aspects must be Following the end of the second world war and in a
especially highlighted. Firstly, the conversion of project situation marked by the dramatically high number of
development financing, which is generally short-term deceased, by refugees, exile and death, families
oriented, into long-term secured financing leads to a torn apart, bombed out towns and cities, an eradicated11
FAKT Group 2019/2020
economic system and the absence of perspectives, on vested for the future in Europe in the coming years,
20th June 1948, the people were each given an initial Germany as the most successful national economy
sum of DM 40 per capita within the framework of the in Europe will already achieve positive growth in the
currency reform: And as early as 1952 to 1954, the coming year and successfully begin the necessary
economic miracle began to take shape. transformation processes into one of the leading na-
tional economies worldwide.
In view of the discipline and energy of the people in our In this spirit, we wish you a miner’s greeting in the tra-
country, the rapid enactment of national and European dition of the Ruhr Area.
economic programmes with billions of Euros and
the high quality of our health system, it is our firm opin- Glück auf!
ion that this pandemic poses a major challenge for Your Board of Directors of FAKT AG
everyone involved, but in no way threatens the exis Prof. em. Hubert Schulte-Kemper
tence of our social system. Norbert Boddenberg
We will emerge strengthened from this current crisis
as, in view of the massive financial volumes to be in-12
FAKT Group 2019/2020
FAKT Group
FAKT Group continues to grow
The steady growth of the company in the year of our 10th anniversary requires a respective
increase in our personnel resources. With a consolidated balance sheet total of some 440 mil-
lion Euros as of 31st December 2019, equity including a revaluation reserve of 117 million Euros,
the involvement of now 65 members of staff and the participation of 40 persons in Supervisory
and Advisory Boards as well as active entrepreneurial cooperation partners all form the basis
for continued dynamic growth.13
FAKT Group 2019/2020
The organisational structures have been adjusted to the programmes is systematically promoted. Here skills
dynamic growth of the FAKT Group. The second level and personal development are always in focus. To this
of management, situated below board level, has been end, a qualification programme together with the EBZ
further expanded and the responsibilities of the indivi- in Bochum was started for our real estate area in 2019.
dual business areas and project companies strength-
ened. Social Media Marketing is to be Strengthened
In comparison to previous years, the ratio of women In view of the growth of the FAKT Group, activities in
could also be markedly increased: Dr. Kirsten Schulte- the areas of social media, public relations and events
Kemper was appointed Member of the Board of have correspondingly come more into focus.
FAWAG, Nina Wittkopf was appointed Deputy Board For this reason, two further social media experts now
Member at FAKT Financial Services AG, and Janina strengthen our team. The increased activity in social
Wrobel was appointed Deputy Board Member at FAKT networks offers FAKT AG the opportunity of infor-
Immobilien AG. ming about business developments and directly con-
The Board of FAKT AG is particularly concerned with tacting interested parties. In addition to postings in
the further qualification of its staff members. The parti- Facebook and Instagram, in future further sales chan-
cipation in internal and external further education nels and levels of communication with multi-faceted14 FAKT Group 2019/2020 usage will be developed. In this manner, interested par- under their own direction. In addition, the acquisition ties will be able to contact the FAKT Group via the most process related to new projects should also find clear varied channels. In addition, the websites of the FAKT support from the application of social media. Group will be modernised and various landing pages generated. Thus, FAKT AG can be found even quicker. Livestreams The essential aim is to support marketing activities in In September 2019, FAKT AG started broadcasting particular in the letting of commercial real estate and livestreams in internet for symposiums – in this also conference and business centre systems standing case public discussions on interest by FAKT Financial
15
FAKT Group 2019/2020
€ 440,4 MILLION
BALANCE SHEET
TOTAL
€ 117,1 MILLION
EQUITY POSTED TO THE BALANCE SHEET
NUMBER OF EMPLOYEES
65
24
NUMBER OF COMPANIES IN THE SCOPE
OF CONSOLIDATION
€ 482,0 MILLION
MARKET VALUE OF COMMERCIAL PROPERTIES
FAKT Group at a Glance (Data, 31st December 2019)
Services AG. The audience figures increase rapidly We assume that the international reputation of the
when there are positive statements and the link to the FAKT Group will, in this way, be strengthened and that
stream is shared. Especially in the Covid 19 crisis, in- the dynamics of the growth of the company will con-
formation is transmitted via videos and livestreams. In tinue in the future. The foundation for this is created by
this manner, FAKT AG presented the economic a qualified and motivated workforce, a stable infra-
developments and the effects of the Corona crisis. Up- structure and reliable processes.
dates concerning the developments in projects such
as that in Marler Stern were also presented in this way.16
FAKT Group 2019/2020
Objects of the FAKT Group
Commercial Real Estate
KLIMAHÜLLE EHINGEN/DONAU MARLER STERN RUHR CAMPUS
BED CONFERENCES
RUHRTURM RUHR TOWER DUISBURG SHAMROCK-
GEMEINDEHAUS PARK
2010
Residential Real Estate
GOETHERESIDENZ
SOZIALER HÜLSER WOHNPARK
MARL WALDPARK
WOHNUNGSBAU WEDDINGHOFEN
HERZLIA-ALLEE BERGKAMEN
MARL17
FAKT Group 2019/2020
SCHACHT III TÜV PORTFOLIO FAKT BUSINESSPARK FAKT HANSA
BOCHUM CENTER
BOTTROP
FAKT CAMPUS RUHRTURM2 LAJTANIA PARK FAKT ALMEPARK
PADERBORN
2020
GARTENSTRASSE LOE-VILLA MARL „WOHNEN AN BERLINER
MARL DER HAARD“ STRASSE
MARL BERGKAMEN18
FAKT Group 2019/2020
FAKT Group
Substantial Holdings
Real Estate
FAKT Ruhrturm GmbH
Ruhr Immo AG
100 % 100 % 100 %
FAKT FAKT FAKT Bildungsstätten
Real Ruhrallee 80 GmbH
Estate GmbH GmbH
100 % 100 % 100 %
FAKT Hansa Center FAKT Tower FAKT
Bottrop GmbH GmbH & Co. KG Liegenschaften Essen
GmbH
RUHR
100 % 100 % TOWER 100 % Liegenschaften
Marler Stern Wohnpark FAKT
Marler Stern EINS GmbH 100 % Weddinghofen Liegenschaften Bochum
Marler Stern ELF GmbH 100 %
GmbH GmbH
Weli Marl GmbH & Co. KG 80 %
100 % 100 %
FAKT SHAMROCKPARK
GmbH
55 %19
FAKT Group 2019/2020
Capital Markets Energy | Agriculture Services
FFS
FAKT Energy FAKT Marketing
Solutions GmbH
GmbH
100 % 100 % 100 %
GAP RUHRTURM Business
Gesunde GmbH
Agrarprodukte
GmbH
49 % 100 % 100 %
FAKT Hungaria
GmbH
100 %
Klimahülle :terra nova
GmbH
90 %20 FAKT Group 2019/2020 Real Estate and Capital Markets Environment
21
FAKT Group 2019/2020
Since the end of the global economic and financial crisis in 2008, the prices for housing and commer-
cial real estate in Germany have continued to rise. In total, we find ourselves approximately 65% above
the level of 2011 (housing almost 70%, commercial real estate 55%). In the first quarter of 2020 too,
the real estate price index of the vdp (Verband deutscher Pfandbriefbanken = Association of German
Mortgage Banks) had increased by 6.3% when compared to the first quarter of 2019. For housing, the
rate of increase lies by 6.5%, for commercial property by 5.4%. With commercial property, there are
contrary developments in the respective sub-markets of office (plus 8.4%) and retail (minus 1.1%).
One leading factor in this „super cycle“ in the property market, is the low interest policy of the European
Central Bank (ECB).
The financial value drivers for the real estate market in gered by market influencing factors such as the demo-
Germany are to be divided into short and long-term graphic change or digitalisation.
value drivers. It can be assumed that the distortion in The record turnover of online traders such as Amazon,
the economic climate due to the shutdown of the Ger- that received an additional growth impulse during the
man economy as a result of the corona pandemic, only pandemic, may also pose an important determinant for
poses a short-term relevant factor for the development retail real estate in future. At the same time, positive
of property prices in Germany. Temporarily decreasing price effects can be registered in special areas of com-
prices can actually be registered in some segments of mercial real estate such as in logistic centres.
commercial properties, whereby the housing market is Particularly in the highly industrialised country of
proving to be relatively robust. Germany, such megatrends argue for a continued posi-
However, irrespective of whether the economic reco- tive price development for property. Here, economic
very takes place in the form of a U-turn, (a relatively development is decisive as it gives a positive impulse
slow recovery), or in the form of a V-turn (an extremely from which, in turn, an increase in the demand for
fast recovery), the decreasing property prices resulting property results. In view of the increasing age of the
from the corona pandemic remain only a temporary population, a limitation for further growth dynamics
phenomenon. could result from the production factor of work. This
Decisive factors for the long-term development in pro- phenomenon can be countered by an intelligently con-
perty prices are to be found in megatrends, i.e. visibly trolled immigration policy, characterised by the criteria
sustainable and long-term market developments trig- education and qualification. In this manner, a continued22
FAKT Group 2019/2020
constant growth in population, can secure a perma- The most important value driver for real estate however,
nently growing demand in housing property. continues to be the development of interest rates. Low
interest rates have a positive influence on the value of
At the same time, it must be noted that the real estate real estate. They lead to a low discount rate whereby
offer will only be expanded with a time delay and will the present value of expected rental income is in-
lag behind the development in the demand for real creased. Low interest rates lead to favourable finan-
estate. Thus, particularly in housing property, excess cing costs in the case of debt financing, which in combi-
demand can be seen as a price driving factor. In our nation with easier access to credits from the bank,
opinion, such market interventions as rent capping are works positive on the demand for real estate (Christian
not the right tools for creating sustainable, additional Rutz: Mein Private Banker – Ein Leitfaden für die selb-
and affordable housing. Pinpointed promotion of the ständige Vermögensverwaltung). The intensive compe-
supply side through the streamlining of application tition between banks, particularly on the German market
processes and systematic public funded investment which when compared internationally is considered
programmes to expand the capacity of affordable „overbanked“ is very positive for private and business
housing facilities would be steps in the right direction. clients who are courted by the banks. The relative yield
advantage of the real estate asset class compared to
The factors globalisation and liberalisation are positive bonds with top credit ratings tends to lead to a further
megatrends worth mentioning for the economic influx of funds into the real estate market.
development of Germany and thus also for the real
estate market. In the view of the FAKT Group, it is Currently, and for the coming years, the FAKT Group
expected that these megatrends will continue to have believes that low interest rates will persist. In view of
a positive effect. In this context, potential dangers can ever new interest lows, in the last year a turnaround in
be found on the one hand in the drifting apart of the interest rates was often forecast. Some time ago a slow-
two economic powers of the USA and China, and on ing down of the world economy was foretold,
the other at European level, potential BREXIT copycat and with the outbreak
effects. Particularly at European level however, the re- of the corona pande-
spective influence of a Germany strongly dependent mic, increases in in-
on foreign trade and based on its economic strength terest rates, not only
alone should carry the necessary influence. In this way, in Europe, receded
especially the hard-hit economies of southern Europe into the distance.
should receive support in the form of grants and cre- The US Central Bank,
dits. This will have a positive effect on EU solidarity partly influenced by
and will make medium or long-term use of the German political pressure
economy which, in turn, will reflect on the real estate from President Trump, stopped its cautious policy of
market. On a global level, a united EU should operate increasing interest rates and carried out cuts in inte-
as a mediator between the USA and China in a moderate rest rates. The monetary policy of the European Central
and intermediary fashion, in order to secure open world Bank also remains extremely expansive in view of the
trade for the future as far as possible. hard-hit economy in the EU area resulting from the
corona crisis. The renewed intensification of the bond23
FAKT Group 2019/2020
purchasing programme through the ECB forms the change over decades. On the contrary, for some time,
framework for a sustainably low interest level for medi- a sustainably positive development has established
um and long-term time buckets and yield curves. It ap- itself, which is characterised by, e.g. the number of ful-
pears then that we can calculate with the persistence ly employed in the Ruhr Area, with an increase of 1.9%
of a low interest rate environment. in 2019. It has now increased to around 1.8 million
people higher than the federal or state average (plus
For the FAKT Group situated in the heart of the Ruhr 1.6%, respectively plus 1.8%). In sum, companies on the
Area, the regional real estate market is of particular Ruhr created 32,517 new employment relations in the
importance. Especially the Ruhr Area is experiencing a last year. Of particular importance here are the sub-
significant structural change from a region charac- segments of digital communications, mobility, urban
terised by industry to a service-based society. High construction and housing as well as resource efficiency.
vacancy rates and dilapidated buildings are no longer The most employment intensive branch in the Ruhr Area
typical hallmarks for a region undergoing structural is the health branch with some 350,000 employees.24 FAKT Group 2019/2020 These developments are having a positive influence on market report of the regional economic promoter Busi- the real estate market in the Ruhr Area. With increasing ness Metropole Ruhr (BMR). As a result, the Ruhr Area tendency, investors from home and abroad are buying is now counted one of the strongest growth markets up real estate between the Rhine and the Ruhr for bil- and popular sites in Germany. Only in Berlin the most lions of Euros. Where investment activities were limi- recently growth rate was larger. The Ruhr Area has ted in the past, mostly to pioneers in structural change thus today become a location for the future with golden such as the town of Dortmund and the city of Essen, perspectives. In national and international comparison, today a clear regional broadening of these activities the metropolitan region of the Ruhr offers favourable can be registered. Now investors have set their eyes purchasing prices, attractive rental income perspectives on towns like Bochum where, e.g. hotels and office and therefore an excellent risk and return profile. In buildings are to be developed on ex-railway property. view of a situation characterised by low interest rates In general, we can recognise that there is currently and well-combed A sites, the FAKT Group offers very a boom particularly in the office building business. In good perspectives for real estate investors in our home 2018, around 257,000 square meters of new office region (www.owtgmbh.de). space emerged as was reported in the real estate Yield curve of government bonds
25
FAKT Group 2019/2020
Real Estate26
FAKT Group 2019/2020
FAKT Immobilien AG is responsible for the develop-
ment of all projects in the commercial property sector.
Within the scope of the successful sale of the RUHR
TOWER, FAKT Group was expressly able to prove that
the business strategy focus, i.e. the acquisition of in-
vestment properties, the target-group oriented revitali-
sation of such properties and the generation of added
value potentials were all realised. In general, the strate-
gic development of the FAKT Group should be thus ori-
ented, so that the realisation of added value potentials
should occur through the consistent build-up of our
property portfolio. To this end, it is foreseen that pro-
ject development is to be carried out by FAKT Immobi-
lien AG while maintaining real estate holdings will be Furthermore, FAKT Immobilien AG has a supporting
done by RUHR Immo AG under the exploitation of hidden responsibility in reporting with respect to re-finan-
reserves. This development could also be shown posi- cing, which lies in the responsibility of FAKT Financial
tively by RUHR Immo AG in the fiscal year 2019/2020. Services AG. The risk management system with res-
pect to the entire holdings portfolio was also optimised
Our holdings in real estate properties were expanded at the same time. This forms the basis both for the
to around 300,000 square meters of commercial real co-ordination and steering of the marketing activities
estate in the period reported. The individual proper- as well as for process management and planned pro-
ties were taken over in an almost completely unoccu- perty investment.
pied state, and owing to our focussed marketing acti- New software solutions optimise processes and data
vities are now almost completely let. This exhibits the processing and also support FAKT Group prepare for
execution of the necessary structural alteration mea- upcoming tasks. This also includes future large-scale
sures and concurrently the rental of the building areas funding via international capital markets and the inhe-
over the past 12 months. rent necessary rating procedures.
Within the framework of the cooperation with E.ON SE, With respect to the acquisition of tenants and con-
forward-looking energy concepts were developed for tinuous reporting procedures, the usage of social media
the individual properties and now find themselves in and portals come again to the forefront and are inten-
the stage of realisation. sively edited by the FAKT Group and adequately used
for external communication.
With completion of the respective building phases, the Furthermore, the FAKT Group took the strategic decision
past few months were also characterised by respon- that more provision would be made for housing const-
sibly implementing the necessary optimisation in the ruction and is to be focused as an independent busi-
commercial administration departments and the ness area. For this reason, FAKT Wohnungsbau AG
technical facility management. At the same time, the (FAWAG) was founded and is responsible for all mat-
basis for further improvements for future energy pro- ters pertaining to housing construction. To this end
jects were settled. and for its implementation, the FAKT Group was able
to identify and win over a competent core team.27
FAKT Group 2019/2020
Real Estate
One of our Lighthouse
Projects:
SHAMROCKPARK
SHAMROCKPARK makes the difference in Herne!
The approximately 100,000 square meter area of the FAKT
SHAMROCKPARK GmbH is rapidly developing and is form-
ing itself into a new reference point within striking distance
of the town centre. Thanks to the integrative usage mix
concept, approximately 85% of existing buildings have in
the meantime already been let or are in the final phase of
negotiating the legal framework. SHAMROCKPARK profits
not least from its transport links.28
FAKT Group 2019/2020
Situated in the heart of the Ruhr Area at the intersection of the A42, A43 and A40,
FAKT AG is creating a unique combination of local culture and a forward-looking
role model function.
The densest motorway network, the largest public Energy Concept
transport network in regional and local passenger traf- FAKT AG tackles the challenges posed by the climatic
fic including busses, underground and tram lines, the changes aggressively and deals with them concretely
proximity to Düsseldorf International and Dortmund and responsibly. One particular focus is given to the
Airports, all guarantee optimum accessibility and links question of energy supply in the new SHAMROCK-
to this future-oriented project. PARK-Quarters.
With its population of nearly 160,000, Herne lies in the In a project of this size, the question of energy supply
middle of the Ruhr Area and, as such, is a part of one of is an important composite part of the whole concept.
the largest urban agglomerations in Europe. The town In this case, a particularly innovative approach was
discharges this responsibility of structural change with selected.
a very special perspective: Herne has long since be Together with our partners E.ON SE and the Stadtwer-
come a site of manifold economic structures. FAKT AG ke Herne (municipal utilities of Herne), we were able to
is thrilled by the enormous reception of the town and develop an energy and mobility concept which has
would be pleased to design the structural change sus- made the entire project to a lighthouse project, also at
tainably and in a forward-looking manner together with an international level.
the town of Herne.29
FAKT Group 2019/2020
FAKT AG is pleased to represent Germany with its pro- electricity making it to a co-ordinated complete sys-
ject in Herne and to successfully take part in a Europe- tem. This leads to savings in energy costs of up to 40%
an promotion call, and will test in a consortium consis- and thus reduces the costs for CO2 emissions enor-
ting of delegates from Sweden, Austria and Scotland, mously.
particularly innovative solutions for the heating and As the existing properties are also to be connected to
electricity markets of the future under real conditions. this new supply network, FAKT AG displays that the fu-
On the one hand, future-oriented technology such as ture is not only tethered to new developments and is
block-type thermal power stations, cooling networks, pleased that the comfort of existing tenants can be
ice storage and heat pumps will be used, and, on the increased.
other, the heat and cold requirements generated by the
usage mix could be used sensibly so that only little In this manner, FAKT AG wishes to set an example, in
energy needs to be supplied from outside. The new that even older existing properties can be developed in
so-called ectogridTM system locally equalises the a future-oriented way, which, in turn, offers new oppor-
hot and cold requirement which to date had been sup- tunities, particularly in the Ruhr Area, and can serve as
plied by separate supply systems for heat, cold and a shining blueprint for this region of structural change.30 FAKT Group 2019/2020 Holdings in SHAMROCKPARK – Developing the Future Gemeindeprüfanstalt NRW (GPA) (Community Testing from the Past and Research Institute NRW), took up residence as a The history of SHAMROCKPARK began with a consor- new and reliable anchor tenant in House 4 of SHAM- tium of Irish and Belgian investors who founded the ROCKPARK. The GPA is responsible for the validation coal mines of Hibernia und Shamrock and appointed of communities and rural districts and is assigned to co-investor William Thomas Mulvany to the Manage- the Ministry for Homeland, Municipality, Construction ment Board. The name of the meeting and conference and Equality in the State of NRW (Ministerium für Hei- villa in SHAMROCKPARK today, reminds us of its epo- mat, Kommunales, Bau und Gleichstellung des Landes nym. Particularly in the past year, the Mulvany Villa de- NRW). FAKT AG is pleased with its new tenants and veloped into an exclusive meeting, conference and thus creates a solid basis for SHAMROCKPARK, which, event centre with its own catering service, and has be- in turn also sends a positive long-term signal. come a social centre and market place for all tenants of the SHAMROCKPARK. The holdings in SHAMROCK- Hilton-Group opens Hotel in SHAMROCKPARK PARK were successively and successfully revitalised In the now completely gutted and fundamentally in the last year. The occupancy rate in existing proper- reconstructed House 3, the Hilton Garden Inn with an ties lies in the meantime at 85% and is thus fast ap- upmarket 3-star hotel will again additionally provide proaching full capacity. At the beginning of 2020, the for a further and stronger enlivenment of this area.
31
FAKT Group 2019/2020
The installation of a hotel business with 154 rooms as The World Centre will mainly house offices, business,
an anchor point in the new area, will relieve bottlenecks meetings and conference centres with an international
in the town of Herne and the hotel can expect a high focus. The core business for the Future Centre will fo-
degree of capacity utilisation. With House 15, SHAM- cus on a mixture of start-up companies as well as
ROCKPARK fulfils the special building requirements education and health institutes. The proverbial high
for the operation of a data processing service centre. point of the building complex will be represented by a
In order to fulfil the stringent requirements, FAKT AG sky bar and a fitness studio.
will invest in this area in a future-oriented manner.
In the course of the new constructions, Brunnenstraße
Design the Future for Herne will also receive a complete facelift at the level of
The holdings in SHAMROCKPARK will be consistently SHAMROCKPARK. In cooperation with the town, FAKT
expanded upon and extended in the coming years. AG is working on a concept of a light development and
FAKT AG has set itself the task of building a special a more open design. The aim is to give SHAMROCK-
bridge spanning the historic inheritance of the area on PARK a uniform, friendly and attractive face with park-
the one side and trend-setting future perspectives on like charm. This will include the removal of fencing and
the other. In focus are the Future and the World Centres, the lifting of access restrictions from Brunnenstraße
two prominent and impressive high-rise buildings, thus making SHAMROCKPARK even more accessible.
which with their approximately 35,000 square meters FAKT AG hopes that the general public can profit more
of floor space will make their own special contribution from the new area in SHAMROCKPARK and that in
to characterising the town panorama. general, the area will become an attractive place to
visit for a broad stratum of the population.FAKT AG is particulary proud of the planned imposing high-rise buildings – the World Center and the Future Center
34
FAKT Group 2019/2020
In addition to the commercial areas arising particu- Axel Koschany, participating architect
larly in the new high-rise buildings, a further focus SHAMROCKPARK offers just what
will lie on design concepts for new housing areas. my architect’s heart desires: the
Apart from apartment buildings, there will also be a chance to open an until now closed
senior citizens residence and a separate part for area as housing for his town, the
apartments for care home concepts. In this manner, exciting urban construction interplay
FAKT AG will provide valuable jobs with neighbou- between old and new buildings,
ring housing opportunities completely in tune with a piece of the history of our region –
the concept of housing close by the work place. and a building principal with a vision.
The accessibility to SHAMROCKPARK will be im
proved both by an increased frequency of bus lines
and the provision of new parking areas. The current Christian Kohl, participating architect
parking space availability of 800 spaces will be in- The complexity of the tasks
creased to 1,500 spaces. between renovation, restoration
and modernisation as well as the
FAKT AG is accomplishing a project which, based on strong and dynamic support of the
its appeal, is developing into a role model for the principal and the municipality of Herne
municipality of Herne and the entire Ruhr Area. In during the entire planning phase, have
cooperation with our partners, we are thus actively led me to set up my own office on
promoting the structural change and are delighted the office campus.
with the openness and support of the municipality of
Herne. Herne is proof that the local authorities in the
Ruhr Area are tackling this structural change with a Holger Stoye, Managing Director
great deal of energy and engagement. With our own Business Development
responsibility in mind, FAKT AG will support and Corporation Herne
match this with the same energy and engagement. SHAMROCKPARK is proof: With the
right approach, changing the use of an
area can lead to extremely exciting work
places. The vision of Herne becoming
an office location with international
character, offers the opportunity of
bringing innovative minds to Herne. And
the projected amounts for the new
building projects, point to Herne as a
profitable investment location.35 FAKT Group 2019/2020
36 FAKT Group 2019/2020 Real Estate Short Summary of Selected Properties
37
FAKT Group 2019/2020
Real Estate
RUHRTURM and RUHRTURM2
Since 2011, FAKT AG has been the proprietor of the The uninterrupted demand for space in the property
former headquarters of the company Ruhrgas AG sector also seen in 2019, therefore justifies a recently
(Ruhrgas AG was acquired by E.ON SE in 2002). This taken decision to convert areas currently best used as
first lighthouse in the business development of the warehousing space into high-grade function rooms.
FAKT Group has undergone a transformation process The conversion of „GASEUM“ into a new function area
from a single to a multi-tenant property since its acqui- is targeted for completion in the second half of the
sition. Its multifaceted areas of use, e.g. hotel, catering year. The already contractually agreed long-term let to
services, conference centre, practise and office rooms an event agency will contribute to a further heightening
all enjoy great acceptance on the market and have of the external perception of the “RUHRTURM”. An ad-
made a significant contribution to the vacancy ratio ditional positive impulse will be given by the recent
lying below 5%. The excess demand and the low avai- upgrade of individual conference rooms. For conferen-
lability of space on the property market in Essen lead ces with an upmarket requirement, three connected
to a satisfactory commercialisation result in the past rooms with a new and elegant appearance will round
fiscal year. off our conference portfolio.38
FAKT Group 2019/2020
In addition, more than 400 underground parking spa- The underground connection tunnel to RUHRTURM,
ces are available for this property, partly offered as provides the users of this modern office complex with
permanent parking spaces and partly as public parking a comfortable option to also take advantage of the so-
spaces. phisticated offer made up of catering and conference
rooms.
This property, now well-famed even beyond the bor- The respective parking garage with more than 360 par-
ders of the Ruhr Area, lies in the centre of Essen and is king spaces as an additional impulse for the strategi-
easily accessible from the motorway and is also cally-motivated acquisition of this property, fulfils the
well-linked to the public transport network. discerning demands of today’s tenants and rounds
off the offer. A combination of sought-after situation,
RUHRTURM², which has now been counted among the modern office area, diverse catering services, multi
portfolio of the FAKT Group for approximately two functional event rooms and modern hotel facilities are
years, is now fully let in the area of office space. the figurehead and author of this success story.39
FAKT Group 2019/2020
Real Estate
Shopping Center Marler Stern
Naturally, during the period under the provision of the
Infection Protection Act, it was no longer possible to
maintain these figures. However, in May due to the
disciplined adherence to legally prescribed safety
measures, an average of 12,000 visitors daily could be
counted. The completion of the last subsection of the
property is almost finished. The delay in the construc-
tion is due to the current situation in spring 2020. The
anchor tenants for this property have now taken over
their premises and the final furnishings are now taking
place. The cooperation partner Marlet GmbH will open
the first outlet areas at the beginning of September.
This means that the change to a hybrid shopping center
will continue.
Reports on the current activities as well as such high-
lights as Marler Stern, can continuously be found on
social media. They have received wide acceptance by
the regional population. Furthermore, new channels of
On 25th September 2019, the completion of the first marketing activities are being developed to increase the
building phase of „Marler Stern“ was celebrated by the level of awareness of Marler Stern beyond the region.
FAKT Group in a programme lasting several days. In an
initial ceremony with 700 people, the anchor tenants
for this subarea were handed their keys, with which
they were able to open their shops on the following
day. Since then, a clear increase in customer frequency
can be observed in Marler Stern. Beginning with a rate
of 9,000 visitors per day, at the end of 2019 an average
rate of 18,000 could be observed. Peak rates of almost
28,000 visitors have been realised and can be proven
with pride.40 FAKT Group 2019/2020
41
FAKT Group 2019/2020
Real Estate
FAKT Businesspark Bochum
FAKT Businesspark Bochum has been in the portfolio of the FAKT AG since July 2019.
The building complex at Philippstraße 3, which formally housed the headquarters of what
is Germany’s largest housing company, Vonovia SE registered in Bochum, consists of
two administration buildings from 1975 and 1995 respectively. These are connected by a
generous entrance hall.42 FAKT Group 2019/2020 The total rentable office area covers some 19,500 in the immediate neighbourhood. The special quality square meters and is almost equally divided between of this site results from the extremely good individual the two administration buildings. The building com- transport connections due to the proximity to the plex disposes of a carpark with approximately 300 motorways A 448, A 43 and A 40, as well as from the spaces, an underground carpark with 34 spaces and proximity of public transport services in the form of an roughly 200 outside parking spaces making a total of underground connection (Line 35) being within walking 530 available car parking spaces. distance and running between Bochum HBF (main The property is situated in an attractive office loca station) and the university in a 5 minute frequency. tion in the popular south of Bochum (suburb Bochum- Wiemelhausen) close to the Ruhr University of Bochum and other office sites on the Universitätsstraße. The new Vonovia SE headquarters are also to be found
43
FAKT Group 2019/2020
In the meantime, rental contracts for three tenants The first tenants can already move in in June 2020.
have been concluded for office areas covering a total Following the successful fitting out of the rented areas,
of around 9,750 square meters the other two tenants will be able to move in successi-
> ASS Athletics Sport Sponsoring GmbH, Bochum vely at the end of 2020.
> Regional Tax Office NRW For the remaining areas, there is already active inte-
> The Autobahn GmbH of the Federal Government rest, which is mirrored by numerous viewings and
intensive rental negotiations. The conclusion of further
rental contracts is expected in the third quarter of
2020.44 FAKT Group 2019/2020 Concurrently with the current renovation and moderni- Together with other neighbouring site owners, we aspire sation measures (in particular energy optimisation to improve the urbanistic situation in this area by mea- in the administration buildings), different additional sures to improve the transport infrastructure and by usage concepts are being developed for the conference increasing the number of parking spaces. and meeting areas, the entrance hall as well as for catering. In addition, questions have arisen concerning the de- velopment of bordering unbuilt areas for housing purpo- ses and for a hotel or a student hall of residence.
45
FAKT Group 2019/2020
Real Estate
FAKT Campus Bergkamen und
RUHR Campus Recklinghausen46
FAKT Group 2019/2020
For this purpose, areas were extended in the main buil-
ding. FAKT AG is particularly pleased that a private
primary school has been able to establish itself on the
campus.
In addition to the existing buildings, there are also
unbuilt areas of land on the site area. This means in
Bergkamen for example, that a new housing area with
different structures will be created. In Recklinghausen,
FAKT Group is strengthening the office market with the
FAKT Campus Bergkamen and RUHR Campus Reck- erection of further commercial floor space. Intensive
linghausen are entering the future discussions with the authorities have led to the result
In this former vocational school for mining, different that FAKT Bildungsstätten GmbH can apply to develop
training offers will continue to be implemented. How the areas of both properties according to § 34 of the
ever, there are more and more educational providers Baugesetzbuch (Town and Country Planning Code). In
from the most different branches in this institution this manner, approximately 8,500 square meters of
today, who complement each other. commercial floor space will be established in Reckling-
hausen. The focus here lies on a building for adminis
A further target is to fortify these sites and thus carry tration units and a modern craftsmen’s yard for creative
out the necessary conversion and revitalisation of and skilled production. In contrast, new housing facili-
certain areas within the two properties. In this way, ties will be erected in Bergkamen. On a ground area of
FAKT AG was able to effect a change in the usage of a around 3,000 square meters, FAKT AG will build
former machine hall in Recklinghausen to a boulder micro-apartments for young people and students.
hall from the town. The boulder hall has already gone
into operation and the area of the gymnasium should The long-term targets, including the founding of an
find a new use in future. At the moment an event con- educational institute and the realisation of the concept
cept is being put together with a tenant. All prepara- „Education and Boarding” will continue to be promoted.
tions for permission to change the use of the property The fundamental idea here is to offer new perspectives
are already being made. to those young people who for various reasons do not
fit into the environment of a vocational school. In order
In the past year, FAKT AG was successful in attracting to increase the pass rates, the offer should be roun-
new educational institutes, particularly for its site in ded-off with rooms for boarders (at the Bergkamen
Bergkamen. They began initially with smaller training site). In this manner, the young people will be familiari-
programmes and happily were able to quickly win over sed with a structured daily routine.
the assignation of further educational measures.47
FAKT Group 2019/2020
Real Estate
TÜV-Portfolio
In the past year, FAKT AG acquired a property portfolio Steubenstraße in Essen
with different sites from TÜV Nord. The four-storey building with a land area of some
5,000 square meters at Steubenstraße in Essen, has
Langemarckstraße in Essen already been successfully sold.
The plot comprises several buildings and is situated in
the north-western part of Essen in the suburb of Stop- Castroper Straße in Datteln
penberg. It disposes of an effective area of approxima- This plot on the Castroper Straße is situated in an in-
tely 14,000 square meters. After the rental contract dustrial estate in the south of the town and comprises
expires in December 2021, the buildings are to be revi- an area of 48,130 square meters. Since 1990, the
talised and modernised. It is planned to heighten the educational institute of TÜV Nord has been imparting
park deck situated on the land. A further building is expert knowledge for jobs of the future. In the next few
also planned for extension and is to be converted to a years, a crafts courtyard, an office complex and han-
conference centre. The property is let to 100%. dicraft businesses will emerge in this area in Datteln.
Here again, FAKT AG has focused on smaller seg-
ments closer to the town centre and developed
future-oriented and resources-conserving property
solutions for industry, trade and logistics.48 FAKT Group 2019/2020 Real Estate Introducing our new Property, the FAKT Hansa Center in Bottrop FAKT AG bought the Hansa Center in Bottrop by notary 100 rooms will be built as will a cinema with eight deed in November 2019. The Hansa Center, which is theatres for 800 viewers. Discussions concerning the still undergoing development, is situated in a prime development of the Hansa Center take place at regular position in the town centre of Bottrop and disposes of intervals between planners, tenants and the local town a total area of 30,000 square meters including an un- authorities. Mayor Bernd Tischler and the Deputy Mayor derground garage with 180 parking spaces. It was ta- for Technical Affairs Klaus Müller welcome the plans. ken over in January 2020. The developments are still in the planning phase – The acquisition of the Hansa Center in Bottrop ex- already planned are a shopping mall, a hotel, a cinema pands the revitalisation activities of FAKT AG in the and an event company. A Hampton by Hilton hotel with segment of shopping centers – and benefits from the
49
FAKT Group 2019/2020
What we start, we
put into practise.
Prof. em. Hubert Schulte-Kemper
experience gained around the shopping center in Marl. cinema situated in an attractive inner-city location of
One reference project is the successfully remodelled Bottrop. Part of the electricity requirement will be
and renovated „Marler Stern“. Hubert Schulte-Kemper generated directly on the roof of the Hansa Center.
says „What we start, we put into practise“. „The Hansa
Center is situated in a prime position and is of central Together with its partner Sunfarming, FAKT AG will
importance for the town of Bottrop“. install a photovoltaic system there. At Marler Stern and
The Hansa Center is to be established as a shopping at the FAKT and RUHR Campuses too, electricity will
mall with an attractive variety of shops, a hotel and a be generated by Photovoltaic facilities in future.50 FAKT Group 2019/2020
51
FAKT Group 2019/2020
Real Estate
Ruhr Immo AG
The FAKT Group has achieved essential progress in of the Ruhr Immo AG by 2.0 million Euros from 3.05
strategically positioning the Ruhr Immo AG as a pro- million Euros up to 5.0 million Euros as a capital in-
perty holding company. Several project companies crease by way of contribution in kind, previously held
were injected into the assets via so-called „share deal as shares of the FAKT AG – 34% of the share capital
transactions“. The well-focused growth of the invest- of FAKT Liegenschaften Essen GmbH – transferred
ment portfolio as well as the financial involvement of to Ruhr Immo AG and taken over by the Ruhr Immo
external investors are the centre point of the future AG as new 2 million no par value bearer shares.
activities. > Preparation of a resolution and subsequent entry in
Since changing its name in July 2018, the Ruhr Immo the commercial register for the increase in the share
AG team has actively co-operated in restructuring the capital of the Ruhr Immo AG, which, against contribu-
property activities of the FAKT Group. Here the target tion in kind in the form of the transfer of capital
is to expand the investment portfolio of Ruhr Immo AG shares held by FAKT AG – 20% of the share capital of
initially via share deal transactions. In this way, Ruhrallee 80 GmbH – to Ruhr Immo AG. In this man-
after successful revitalisation and rental of the proper- ner, Ruhr Immo AG will hold 89% of the share capital
ties, the property holding companies will receive an of Ruhrallee 80 GmbH.
evaluation from an independent auditor, and the pro- > Identification of the property holding companies
perty subsequently will be injected into the Ruhr Immo which are to be brought into the Ruhr Immo AG with
AG as a capital increase by way of contribution in kind. up to 89% of their share capital.
This corresponds with the prescribed procedure for To increase capital by way of contribution in kind, a
project development and responsibility of the FAKT company valuation is carried out by German auditors
Immobilien AG (FIAG), and the assignment of the ma- in line with the prevailing principles and methods of IDW
nagement of the investment portfolio to be bundled at S1 i.t.v. of 2016. To this end, the valuation is checked
the Ruhr Immo AG. Via the high-quality rent structures by independent auditors unfamiliar with the annual re-
and the continued good development opportunities of sults. The auditor in turn issues a certification notation
our property sites, the investment portfolio generates regarding the intrinsic value of the contribution in kind.
sustainable cash flows. The substantial strength of As a result of the „proof of concept“, and the contribution
our investment portfolio will form the future basis for of intrinsic value to the Ruhr Immo AG, hidden reserves
the involvement of external investors. The planned could be identified and portrayed transparently. As a
opening up for long-term oriented investors, should result, future investors have the opportunity to partici-
further continue to promote the growth of Ruhr Immo pate in the appreciation in value of the properties, and
AG in future. respectively to realise a medium-term and adequate
risk return. It is still planned to extend the group of
The following topics were implemented during the shareholders to up to 49% of long-term oriented inves-
period reported: tors. In this way, Ruhr Immo AG will continue to make
> The resolution of the FAKT AG and subsequent entry an important contribution to the profitable growth of
in the commercial register to increase the share capital the property sector of the FAKT Group.You can also read
