1. Due diligence costs for the purchase of real estate 1.1 Municipal search Cost Administrative fees for copies or excerpts from public registers may vary regionally from EUR 10 to EUR 50 (per land...

The COVID-19 pandemic led many tenants to re-negotiate their lease agreements, others in turn have stopped paying rent or paid a reduced amount. After over a year of the pandemic bringing various business...

Globalisation, political turbulence, changes in urban living patterns, increased digitisation, shifting consumer behaviour and flexible working are just some of the issues that are transforming the demands...

A radical rethink for global property – and where we live, work and play As the real estate world emerges from the pandemic it is clear that all around us the urban landscape is changing. Many properties are obsolete but also have exciting futures with new uses. Our town centres and cities are undergoing fundamental change – which all adds up to a world focused on Repurposing Real Estate. Now in its tenth year, our Real Estate Thought Leadership series has covered topics such as the rise of international investment in the UK, the growth of tech, the future of the office, the rapid rise of industrial & logistics and the arrival of build-to-rent as a major asset class. This year, with the Government having published its Levelling Up & Regeneration Bill, we focus on the future of towns and cities not only in the UK but in a series of key global investment hubs: Germany, France, the Netherlands, Spain, Singapore and the United Arab Emirates. After two years of lockdowns, working, shopping and socialising at home, a debate is raging about the future of town and city centres. Will they recover? How will they look in ten years? Will urbanisation go into reverse? And what does this mean for the real estate world?In `Repurposing Real Estate’ we provide the first answers having polled more than 300 leading industry professionals and almost 15,000 global consumers. The results are fascinating: almost a third of real estate is earmarked for conversion – with retail and offices to housing the most popular choices. Consumers want more green and open space, having spent too long confined to their own homes. But the good news is that investors, having come through the pandemic, are still confident in real estate as an asset class. The big changes will be in what property they invest in, meaning the places we live, work and play in may be very different in the years to come.

CMS is pleased to announce new heads for four of its international expertise groups. All CMS lawyers work in cross-border groups across more than 40 countries worldwide that are structured according to...

Real estate investment markets remain stable whilst buyers continue to catch up in contractual risk allocation Logistics assets more popular than everDemand from international investors reaches record high accounting for 55% of deals, with most international investors still being from within EuropeIncreased desire for security on the part of sellers continued to be a feature in 2021: share of transactions in which the buyer's payment obligations are secured reaches another record high­Buy­er-friendly trend in contractual risk allocation continues as seller-friendly provisions on limitation of liability continue to declineThe European real estate investment market appears to have largely recovered from the consequences of the COVID-19 pandemic in 2021. Compared to the pan­dem­ic-stricken previous year, total investment increased by around 15% to approximately EUR 270 billion, marking a return to the pre-crisis level. Logistics assets performed particularly well last year, having become the focus of investors’ attention due to their stable income flows and the ongoing growth of online shopping. Demand from international investors was also up again in 2021, with intra-European transactions being the rule. 2021 also brought a new record high in the number of transactions in which the buyer's payment obligations were secured. With regard to contract design, the buyer-friendly trend continued, as reflected especially by a decrease in de minimis and basket clauses as well as caps. Logistics assets more popular than ever Office properties were a popular asset class in 2021 despite all the uncertainty surrounding the COVID-19 pandemic, although some market share was lost to logistics and residential. The slight downward trend in office transactions handled by CMS seen in previous years nonetheless continued, with their share declining from 30% in 2020 to 19%. The reason for the declining proportion of transactions in the office segment is likely to be two-fold, combining the lack of available core properties and the current uncertainty around the impact of hybrid ways of working on demand for office space. The residential and logistics asset classes on the other hand were especially popular in 2021, each with a market share of 23%, compared to 22% and 19% respectively in 2020. One of the key factors for this trend was the stable income generated by residential and logistics properties, which is particularly attractive to investors. Logistics assets additionally benefited from the ongoing growth of online shopping, which was boosted recently by the COVID-19 pandemic and the related closure of retail shops, leading to an increased need for delivery and distribution centres. High demand from international, mostly intra-European, investors International investors were more active again last year: they accounted for 55% of deals in 2021, compared to 43% in 2020. In 2020, international investors had a difficult time, not least due to the impact of the COVID-19 pandemic. The associated travel restrictions meant that many international investors from other continents were forced to postpone their planned transactions. The property market seems to have recovered from these effects last year, with a new record 55% of transactions involving foreign investors. However, these foreign investors were mostly from within Europe; the number of intercontinental transactions remained below pre-pandemic levels in 2021. Sellers seek security An increased desire for security on the part of sellers continued to be a feature in 2021. The share of transactions in which steps were taken to ensure that the buyer met its financial obligations rose further in 2021. Sellers were granted security in more than two thirds of cases (70%). This trend is consistent with 2020, when an increased desire for security on the part of sellers was already apparent. In contrast, security was agreed in less than 50% of all transactions in the period from 2015 to 2018. The current high level is due in part to an increased desire for security on the part of sellers as a result of the COVID-19 pandemic; they were often uncertain about the buyer’s solvency going forward. Buyers continue to catch up in contractual risk allocation Buyers were able to catch up further in terms of contractual risk allocation. The proportion of transactions with seller-friendly de minimis clauses and basket clauses (i.e. clauses that provide for a threshold or minimum limit for guarantee claims by the buyer) stagnated or declined somewhat compared with the preceding years. In the previous year, after a noticeable decline, agreements aimed at limiting liability were made in 44% (de minimis clauses) and 41% (basket clauses) of cases. The share of deals with a basket clause fell further to 32% in 2021. As in 2020, a de minimis clause was included in 44% of the transactions analysed. A similar trend was seen in con­trac­tu­ally-agreed liability caps. Whilst the proportion of transactions with a cap was well over 60% in some cases in the years up to 2018, the percentage of agreements with a con­trac­tu­ally-agreed maximum liability fell slightly from 56% in 2020 to 50%.

We are over 800 qualified real estate lawyers working in real estate and construction, spanning 46 countries and 75 cities. The CMS Real Estate practice is the largest real estate specialist team in Europe and one of the biggest worldwide.

Recent work highlights Investment and disposal Advised Commerz Real on the acquisition of the "Millennium portfolio" from Generali Lebens­ver­sicher­ung. The portfolio comprises 49 office, residential and retail properties with a total rental area of over 352,000 square metres at central locations in German cities. Advised Invesco Real Estate on the sale of the "Prime Four" residential portfolio to Real I.S. The total area of the portfolio is approx. 69,400 square metres with approx. 760 residential and 32 commercial units. Advised DIC Asset on the launch of its largest fund to date with a gross investment volume of EUR 1.6 billion. Subsequently advised on the acquisition of the start-up property Deka Office Hub in Frankfurt from Lang & Cie. AG by way of a forward share deal with a value of approx. EUR 375 million. Advised Allianz Real Estate on the sale of Skyper office property in Frankfurt to a group of HDI Deutschland companies. Skyper is a high-rise building designed for multi-tenant use. It offers around 54,000 square metres of flexible rental space across 35 floors. Advised Allianz Real Estate on the acquisition of 75 % of a portfolio consisting of three office buildings in London's West End worth over EUR 440 million from British Land. Advised real estate investor x+bricks Group on a conditional purchase agreement with the SCP Group for 34 grocery-anchored properties in Germany with a total rental area of some 425,000 square metres. The agreement gives x+bricks access to a property pipeline worth more than EUR 1 billion (GAV – gross asset value). Managers and occupiers Advised Louis Vuitton, Loewe, Givenchy, Berluti, Douglas, Klingenthal and DECATHLON among others on an ongoing basis on asset and property management issues. Recently extensive advice on various COVID-19-related issues. Advised Santander, axion, Allianz Real Estate, Amundi on an ongoing basis on asset and property management issues relating to existing real estate in Germany. Advised Cilon on the lease agreements for the twelve-storey office tower "Sky Eschborn". The main tenant is the Korean automotive supplier Mobis Parts Europe N.V., a Hyundai Motor Group company which has rented around 9,500 square metres of office space. Advised easyJet Airline Company on planned construction of maintenance hangar at Ber­lin-Branden­burg Airport. A CMS team provided comprehensive legal advice during the negotiations and the contractual arrangement of the lease. The hangar will be used for the maintenance of the airline's European fleet and covers an area of approximately 10,000 square metres. EasyJet is also relying on CMS for advice on the construction of the hangar. Financing Advising ELIREF, an Aberdeen Fund, on the financing of the acquisition of a pan-European real estate portfolio. Advised Global Tech Offshore Wind, the operating company behind the 400 MW Global Tech I wind farm in the North Sea, on all legal aspects of a comprehensive refinancing of existing loans. An international CMS team has been providing the operating company with legal support on a regular basis since the project was launched in 2011. Throughout realisation, CMS has provided comprehensive advice on project planning, construction and further rounds of financing. This is one of the first project finance arrangements for an offshore wind farm in Germany. Advised a German pension fund on the financing of Frankfurt 'FOUR' high-rise complex. Each of the four towers under construction was independently financed, including the relevant part of the shared base building. Total investment in the project amounts to more than EUR 1 billion. Advised DIC Asset on all legal aspects of purchasing and financing of the LOOK 21 property in the centre of Stuttgart for around EUR 122 million on behalf of a special AIF. Advising an international insurance company on the review of its entry as a syndicated lender into the financing of a pan-European real estate portfolio with a volume exceeding EUR 500 million. Planning and environmental Advised VERBUND power plant Jochenstein in the planning approval procedure for the construction of a 300 MW pumped storage power plant on the German-Austrian border. Many environmental and planning law as well as procedural issues. One of the largest storage projects in Germany, measure recognised by EU Commission as a PCI. Advised a pharmaceuticals and biotech company on the development plan procedure for the intended plant expansion, in particular on issues relating to planning law, nature conservation and species protection law and water law, local infrastructure issues and local infrastructure charges law, including negotiation of urban planning agreements. Advised an biotech company on the public-law due diligence review in connection with the acquisition of a biotechnology site in Marburg and advice and legal opinion on public-law approval requirements, especially under the German Emission Control Act (BImSchG) at a manufacturing site for highly specialised pharmaceuticals. Advice [kcts] to the Federal State of Brandenburg on environmental law, including advice on contamination law in the course of negotiations on the purchase agreement for the sale of an industrial site to TESLA. Advice and representation of Femern A/S in the planning approval procedure for the Fehmarn Belt Fixed Link. The planned combined railroad and freeway tunnel linking Fehmarn (Germany) and the island of Lolland (Denmark) is one of the largest infrastructure projects in Europe, with an investment volume of more than EUR 7 billion. A CMS team provided comprehensive legal advice on the preparation of the cross-border Environmental Impact Assessment (EIA), the legal management of more than 13,000 objections and the successful representation of Femern A/S before the Federal Administrative Court in legal proceedings brought by several environmental associations, a ferry operator, several municipalities, landowners and other affected private parties over the planning approval decision. Construction and development Advice to INEOS Phenol on the development of a new large-scale cumene production plant in Marl Chemical Park. The advice covers the entire project development with a mul­tidiscip­lin­ary approach, including distribution, license, site establishment, real estate, planning and construction agreements. Advising a project development company on public procurement law in connection with the planned construction of a new cultural facility and a high-rise building with an impact on urban development as well as the legal structuring of the development process with regard to the involvement of a real estate fund. Furthermore, advice on public procurement law with regard to the tendering obligation and applicable award procedures for the lease of a new public authority building to be constructed for security authorities, and other private and public users. Moreover, advice on public procurement, public building and planning as well as state aid law with regard to the development and transaction of a property and its further lease to a contracting authority. Advising a financing institution on the procurement and subsidy law requirements for the construction of a nursing home. Furthermore, advice on public procurement law in connection with the finance lease of trams. Advising a US real property developer in connection with entering the European market. Our comprehensive advice includes the acquisition of real property, the development of eight logistics centres in Germany, several general contractor agreements with construction companies, framework agreement, financing and portfolio exit. Advising Leipzig 416 GmbH on the negotiation of an urban development agreement and four real property purchase agreements for community facilities for residential areas and public transport areas with the City of Leipzig for the Leipzig development area "Eutritzscher Freil­ade­bahnhof". The project development is the largest in the new federal states, covering approx. 25 ha, where approx. 2,400 flats, commercial areas, a school and sports campus as well as two day-care centres are to be built. 

A first glance suggests there were no major changes in the European investment market in 2018, with the investment volume being roughly the same as in the previous year at around EUR 264bn. However...