In the Spotlight
A new corporate structure to reflect the Group's strategic development
This restructuring serves to reflect our strategic development. Over the last ten years, HOCHTIEF has continued to evolve in defining ways. At the beginning of the 1990s, it was still a traditional German-style construction company. Then it started to undergo a rigorous realignment. HOCHTIEF's focus shifted – firstly, to building an international construction business. Its expansion and acquisitions in foreign markets led to the creation of the HOCHTIEF Americas, HOCHTIEF Asia Pacific and HOCHTIEF Europe divisions. For these three units, the new structure involve no changes whatsoever.
Secondly, we have systematically tapped new business segments beyond construction, for example, by moving into property development as well as the management and operation of properties, facilities and infrastructure projects, and by building a first-rate portfolio of infrastructure concessions.
HOCHTIEF can no longer be likened to a traditional construction company. Rather, the HOCHTIEF Group's strategy is based on covering the entire life cycle of infrastructure projects, real estate and facilities. Our four modules, namely development, construction, services, and concessions and operation, are the embodiment of this approach. By introducing a new structure to mirror the Group's development, we are providing even greater transparency and thus enabling all our business activities to be clearly evaluated.
HOCHTIEF AirPort and HOCHTIEF PPP Solutions have been brought together under the HOCHTIEF Concessions division. Both companies have considerable international experience in designing, financing, building and operating complex projects. We currently hold stakes in six airports, seven toll roads and 15 projects in the public buildings segment. Across these different asset types, our companies operate using similar business models, such as in project financing and structuring. The greater market clout
HOCHTIEF Projektentwicklung, aurelis Real Estate, HOCHTIEF Property Management and Deutsche Bau- und Siedlungsgesellschaft (asset management) are now part of the new HOCHTIEF Real Estate division, which combines our real estate and real estate portfolio activities. At the heart of this division is HOCHTIEF Projektentwicklung, which was established in 1991. Over the last five years alone, we have developed 58 projects representing a total investment of more than EUR 2.63 billion. While the German market is still the focal point, we are also increasingly active in Central and Eastern Europe. In 2007, we significantly bolstered our position in this segment by acquiring a 50 percent stake in aurelis Real Estate and also boosted our real estate expertise by expanding our property management activities. We currently manage more than seven million square meters of real estate in a fiduciary capacity on behalf of investors.
The new HOCHTIEF Services division comprises our facility and energy management activities. Established in 1996, HOCHTIEF Facility Management supports clients by providing a range of integrated solutions for the operation of properties and facilities. We focus on technical and industrial facility management and have established ourselves as a reliable outsourcing partner. HOCHTIEF currently manages more than 26 million square meters of building space. Additionally, in 2007 we strengthened our energy contracting services and, in January 2008, set up HOCHTIEF Energy Management. Through these activities, we are focusing firmly on an area that is key to sustainability and positioning ourselves in a growing market.
HOCHTIEF continues to evolve. Our global setup coupled with our stronger positioning in the concessions and operation and services modules are central elements of our strategy. Our new structure reflects this focus.
