Mitigating the lack of written form? – Federal government is sceptical about the Bundesrat’s legislative initiative

The legislator wants to remedy the eternal dispute about written form defects of long-term rental contracts. After the Federal Court of Justice recently finally overturned so-called cure clauses in long-term rental agreements (we reported), the Bundesrat took the initiative and decided to reform the regulation in December 2019. Failure to comply with the formal requirements is often used as a loophole in order to be able to get out of an unpleasant lease at an early stage. The draft of a law to revise the written form requirement in tenancy law now provides for limiting the right of termination to the purchaser. This reduces the norm to the protective purpose which the historical legislator had intended it to serve, the draft states. In addition, the right of termination to which only the purchaser is now entitled for the written form infringements prior to his acquisition is to be limited in time to protect the tenant. In this way, it is prevented that the tenant has to expect a termination by the purchaser due to a formal defect that has come to light during the entire remaining agreed contract term. In addition, the termination will become ineffective if the tenant objects to it and agrees to the continuation of the rental agreement on the terms agreed in writing.

The draft law has now been submitted to the Bundestag for resolution. However, the Federal Government rejects the draft. The new regulation would also apply to residential leases. Since an abuse of the regulation is not detectable there is, according to a statement, no need for action. The Federal Government is therefore not in a position to support the Bundesrat bill in this form. The Federal Government would examine whether and with which instruments the planning security for the term of contracts in commercial rental law could instead be improved. So things remain exciting. If no alternative is found by the end of this legislative period, the dispute will enter a new round. Click here for the draft law.

KUCERA advises HR Group on sale of seven hotels

KUCERA advised the HR Group in the negotiations of new lease agreements in the context of the sale of seven hotels. The buyer is Pandox, a real estate company listed on the Stockholm Stock Exchange. The properties include the Dorint Main-Taunus Zentrum in Frankfurt am Main, the Mercure Hotel Frankfurt Airport and the Pullmann Stuttgart Fontana. The transaction value was about 290m Euros. Read more…

Responsible was KUCERA partner Matthias Frank (Hospitality) together with Helmut Kienle (Hospitality).

Matthias Frank
Helmut Kienle

KUCERA advises Godewind on the financing of the acquisition of the “Quartier am Zeughaus”

KUCERA advised Godewind Immobilien AG on the debt financing of the acquisition of the the purchase of the “Quartier am Zeughaus”. The “Quartier” is located in the district Eppendorf in Hamburg on the Osterfeldstraße. It consists of around 43,500 m² of office space. Current tenants include Deutsche Telekom, Porsche Consult and the Hamburg Business Center (HBC). Read more…

KUCERA partners Oliver Platt LL.M (UW Madison) (Real Estate & Finance) and Andre Barth (Real Estate & Finance) were responsible.

Oliver Platt

Andre Barth

KUCERA advises Deutsche Hospitality on franchise agreement for a hotel in Denmark

KUCERA advised Deutsche Hospitality on the conclusion of the franchise agreement for the Steigenberger Alsik Hotel. On 6 May 2019 the hotel opens in Sonderborg, near the German-Danish border. It has 190 rooms and suites, three restaurants and a 4,500 m² wellness and spa area. With the opening, Deutsche Hospitality is celebrating the market entry of its Steigenberger brand in Northern Europe. Read more…

KUCERA partner Matthias Frank (Hospitality) was responsible together with Florian Weber (Hospitality).

Matthias Frank

Florian Weber

KUCERA advises Arminius on the purchase of an office building in Ulm’s Science Park

KUCERA advised the Arminius Group on the purchase of an office building in Ulm’s Science Park on the Eselsberg. The purchase took place for the special AIF Immo Select of Volkswohl Bund Lebensversicherung managed by Hansainvest. The total lettable area is around 8,700 m² and contains 320 parking spaces. The property is fully and long-term leased to the technology group Nokia. Read more…

KUCERA partner Oliver Platt LL.M (UW Madison) (Real Estate & Finance) was responsible together with KUCERA partner Andre Barth (Real Estate & Finance) and Milena Stefanovic (Real Estate & Finance). Isabel Tannenberg (Tax) provided tax advice.

Oliver Platt

Andre Barth

Milena Stefanovic

Isabel Tannenberg

KUCERA advises Coreo on the sale of first property from Hydra portfolio

Kucera has advised Coreo AG on its first real estate sale from the Hydra portfolio. The property is a residential and commercial building located in the immediate vicinity of the UNESCO World Heritage Site “Porta Nigra” in Trier, Germany.

Responsible for this deal were the KUCERA partners Jens Koch (Real Estate) and Rolf Krauss (Tax). Read more…