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 Berateq GmbH on the purchase of an industrial park near Frankfurt am Main

KUCERA advised Berateq GmbH on the purchase of the “Am Aubach” industrial park in Waldsolms near Frankfurt am Main as part of a share deal. The property is approximately 17,000 m² in size and comprises a retail park and several office buildings with a total lettable area of 5,500 m². The business park also has 160 parking spaces for cars. Read more…

KUCERA partner Rolf Krauß (Taxation) was responsible for the project.

Rolf Krauß

KUCERA advises Coreo on the purchase of the St. Martin Tower in Frankfurt

KUCERA advised Coreo AG on the acquisition of the St. Martin Tower. The purchase was a joint venture between Barings Real Estate and Coreo, with Coreo assuming the role of junior partner with 10.1% in the Off-market Share Deal. The office complex is located in Frankfurt’s City West and consists of two building sections, the “Tower” with 18 storeys and the “Wing” with seven floors. The property also has 397 parking spaces. Read more…

KUCERA partner Rolf Krauß (Tax) was responsible together with KUCERA partner Jens Koch (Real Estate).

Rolf Krauß
Jens Koch

KUCERA advises LEG on the purchase of 2,200 apartments in Bremen and Niedersachsen

KUCERA advised LEG Immobilien AG on the purchase of 2,200 residential and 30 commercial units. The properties with a total rental area of 140,000 m² are located in Bremen, Oldenburg, Delmenhorst and Cuxhaven, with Bremen and Oldenburg accounting for around 92% of the rental area. A total of 39 buildings were built between 1920 and 2002 and extensively refurbished since 2015. Read more…

The KUCERA partners Jens Koch (Real Estate), Rolf Krauß (Tax) and Andre Barth (Real Estate, Finance and Transaction) provided advice.

Jens Koch
Rolf Krauß
Andre Barth

KUCERA advises LEG on the purchase of 2,000 apartments in NRW

KUCERA advised LEG Immobilien AG on the purchase of 2,000 apartments in Aachen, Niederrhein and Ruhrgebiet. The portfolio covers an area of around 122,000 m², divided into one-room to four-room apartments ranging in size from 30 m² to 110 m². Almost half of the units are subsidised housing. The seller is Vivawest Wohnen GmbH. The property is to be transferred to LEG on 1 January 2020. Read more…

KUCERA partner Jens Koch (Real Estate) was responsible together with KUCERA Partner Andre Barth (Real Estate, Transaction). KUCERA partner Rolf Krauß (Tax) provided tax advice.

Jens Koch
Andre Barth
Rolf Krauß

KUCERA advises Coreo on the purchase of 272 apartments in NRW

KUCERA advised Coreo AG on the purchase of 272 apartments. The apartments are located in Wuppertal, Bielefeld, Gelsenkirchen and Lünen and have a total area of 19,800 m². This housing stock is almost fully let. At the beginning of next year, the benefits and burdens are to be transferred to Coreo AG. Read more…

KUCERA partner Jens Koch was in charge together with David Fekadu and Alexander Hanf (all Real Estate). Nicole Sturmfels (Tax) advised on tax law.

Jens Koch
David Fekadu
Alexander Hanf
Nicole Sturmfels

KUCERA advises major letting in Stuttgart

KUCERA advised HALLESCHE Krankenversicherung on the conclusion of a lease agreement for a new corporate headquarters in Stuttgart-Degerloch. HALLESCHE will consolidate its locations in Stuttgart in a new building. The approx. 26,000 m² office building is a project of the Freiburg project developer Unmüssig on the Löffelstraße site. The move-in is planned for the 3rd quarter of 2023. Read more…

KUCERA partner Dr. Stefan Kucera (Real Estate) was responsible together with Dajana Kenji (Real Estate).

Dr. Stefan Kucera
Dajana Kenji

KUCERA supports Deutsche Hospitality inhouse in the takeover by the Huazhu Group

The Huazhu Group, a leading Chinese hotel group, acquires all shares in Steigenberger Hotels AG under the umbrella brand “Deutsche Hospitality”. The buyer is the subsidiary China Lodging Holding, based in Singapore. The brands of Deutsche Hospitality currently include Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotels. Huazhu expects the acquisition to be a strategic addition and a competitive advantage for both companies. The Deutsche Hospitality brands are expected to expand Huazhu’s offering and operational capabilities in the European high-end hotel market. KUCERA advised Deutsche Hospitality on the transaction in-house. Among others from the KUCERA team were involved: Matthias Frank (lead, Hospitality), Dr. Stefan Kucera (Real Estate Transaction), Florian Weber and Michael Plehn (both Hospitality).

Read more…

Matthias Frank
Dr. Stefan Kucera
Florian Weber

Michael Plehn