TAG Group’s commercial real-estate portfolio is comprised of lucrative properties with varying rental periods and credit-worthy tenants. Our Top 5 commercial real estate tenants are Siemens AG, followed by the state of Lower Saxony (Niedersachsen) and the city of Wuppertal, employment agencies, Linde Gas Therapeutics GmbH and Kratzer Automation AG. 

In addition, TAG’s commercial properties are characterised by strong cashflow and long rental periods. Of the rental contracts that expire in 2011, nearly 50 percent have already been renewed. TAG generated 50 percent of its rental income with its commercial property portfolio, and 57 percent of the rental profits. Vacancy in the commercial property portfolio is now (Dec 2010) just 3.8 percent after 5.2 percent at year-end 2009.

The intrinsic value of the commercial real estate portfolio is evidenced among other things by good urban locations in German metropolises with growth potential. Also, the value of TAG’s commercial real estate was upgraded slightly in 2010, which has to do partly with the fact that the rents in several properties are considerably below the market. A similar trend can be expected for the current business year. No further acquisitions are planned in the commercial real estate sector; instead, our activities here are focused on asset management.