FRA/rap-th> Fraport AG's executive board wants to develop the airport along side the flight operations area. Explaining today's new real estate strategy, Fraport executive board chairman Dr. Wilhelm Bender said: "In practical terms, Fraport has already been working like a real estate company with flight operations."

Thus, along with the marketing of existing sites, new real estate resources like the Mönchhof area, Gateway Gardens, and Airrail Center Frankfurt will make a targeted contribution to the development of Frankfurt Airport City in the future. Another milestone will be the planned Terminal 3, construction of which will decisively increase the quality rating of the areas at the southern side of the airport. Furthermore, CargoCity North and CargoCity South will also grow because of the increasing volumes of airfreight at Frankfurt Airport (FRA).

Fraport's new real estate strategy encompasses three steps: more efficient management of existing areas, development and realization of new land-use concepts as part of real estate project development and, finally, an increase in entrepreneurial flexibility by using a portfolio management approach for controlling real estate assets.

Future plans also call for concentrating all functions that allow for efficient management and ongoing development of existing real estate assets in the Retail and Properties business division, which is responsible for Fraport AG's real estate development and marketing. This also includes real-estate master planning, commercial project development, and building management. The goal of the restructuring is to create an internal unit that operates like an independent real estate company.

According to Bender, this will open up strategic options to spin off eventually the entire real estate business into an independent company or to operate it as an independent business segment. A further step would be the possible involvement of financial investors, either by creating a Real Estate Investment Trust (REIT) or an Immobilien AG (joint-stock real estate company).

Safeguarding and supporting existing operations and their further development is a prerequisite for this. "We will not sell the airport site," said Dr. Bender. This is also reflected by the investment plans for the coming years. For example, Fraport AG again increased the investment volume for expanding Frankfurt Airport and modernizing  existing terminal facilities.

Some €3.4 billion have already been budgeted for FRA's capacity expansion program. An additional €170 million have now been earmarked for connecting the Long-Distance Train Station to the Sky Line people-mover, plus €130 million for drainage of the planned northwest landing runway.

Furthermore, Fraport AG will invest about €3 billion for modernizing and expanding terminal infrastructure on the northern side of Frankfurt Airport in the next few years. Work on the Hall C expansion project at Terminal 1 has been in progress since 2005. This project will cost approximately €110 million and will provide well over 900 square meters of new shopping space as well as more land-side handling capacity.

Another project is the relocation of Pier C to accommodate three docking positions for the A380 in the future. This construction project has an estimated cost of €250 million. At the west end of Terminal 1, the Pier A-Zero extension will require an investment of just under €600 million. The new Pier A-Zero will feature four positions for the A380 superjumbo and about 3,000 square meters of shopping space.

Background Information on Fraport's Real Estate Business:

Frankfurt Airport (FRA) comprises an area larger than Frankfurt's city center. FRA's size is equivalent to an  area stretching from the Frankfurt trade fair grounds (Messe Frankfurt) in the west to Osthafen in the east, and from Frankfurt-Sachsenhausen in the south to Riederwald in the North.

At the same time, Frankfurt Airport is one of Europe's most attractive business locations because it is a major intermodal junction for air, rail and road transportation networks. More than 500 companies are located directly at FRA.

The airport is uniquely distinguished by its continuous growth, strong purchasing power, excellent infrastructure, high leisure value, and its large catchment area.  

In financial terms, the marketing of airport real estate already accounts for more than half of Fraport AG's operating results today.

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For More Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. – Manager International Press
Press Office (Dept. UKM-PS), Corporate Communications (UKM)
60547 Frankfurt am Main, Federal Republic of Germany
Tel.: +49 69.690.78547; Fax: +49.69.690.60548;
E-mail: r.payne@fraport.de