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46 Management report – münchener Hypothekenbank eg l annual report 2013 of these properties is, however, is limited. The big property brokers anticipate that the volume of transactions in 2014 will again be about € 30 billion. Yields will remain low. Growth of rents at the top end will slow. Increasing scarcity of available core properties will lead to greater competition among investors, as well as pro- viders of financing. It anticipated that there will be a far greater inclination towards investments in B-class properties and loca- tions. Financially strong and conservative investors like insurance companies, pension funds and foundations will, however, con- tinue to primarily focus on core properties. A similar situation is visible in the UK where London will continue to dominate the British commercial property investment market. Investors in London also focus on core properties. However, the scarcity of appropriate properties has pushed prices significantly higher and as a result investors are now turning their attention to B-location properties in London and adjacent regions, as well as other regions. We therefore expect that although yields will decline a bit in London, the pace of rising prices paid for com- mercial property will slow significantly. The development of the French commercial property market de- pends heavily on the success of the consolidation of France’s economy. The market is only likely to receive limited stimulus from this direction as only a modest upswing is expected. For this reason, the investment and rental markets are only foreseen to perform at last year’s level. This outlook excludes the greater Paris area, where a rising volume of transactions is anticipated, especially in the office property segment. Yields will develop stably, although they could also decline slightly for core prop- erties. Favourable market conditions in the commercial property mar- ket in the USA will further stabilise in 2014, especially in core markets and locations with above average job growth. Increased demand and a continuing recovery are also forecast for the sec- ondary markets. The upswing in the market can be interrupted again as both overall economic conditions and the future de- velopment of interest rates in the USA are accompanied with uncertainty. Development of Business at Münchener Hypothekenbank MünchenerHyp will remain on its growth course in 2014. In view of the overall good conditions in the German residential and commercial property markets we again anticipate high demand for property financing. Against this background we are planning to record at least € 3 billion in new mortgage business. Working together with the German cooperative banks we benefit, especially in the residential property financing area of business, from having partners who are solidly anchored in their markets, have strong sales capabilities and high standings with their cus- tomers. For this reason the BVR anticipates that new residential property financing business generated by cooperative banks will rise by 3.8 percent. Our objective is to complement the range of products offered by our cooperative partner banks via brokered business in order to realise their customers’ desires and expand our share of the market together. We will further pursue our collaboration with independent finan- cial service providers. We are aiming to generate new business between € 400 million and € 600 million. Our successful coop- eration with Swiss PostFinance will be continued. “We want to continue our growth course. We expect that there will be renewed high demand for property financing, especially in Germany.” We anticipate that our new business in the commercial property financing area of business will be at the previous year’s level. Our emphasis will remain on financing property transactions in Germany, where we will focus on direct and syndicated loans with mainly institutional customers and professional private in- vestors. We also aim to gradually expand our collaboration with the Volksbanken and Raiffeisenbanken in this area of business. In addition, we also plan to continue financing major housing portfolios in Germany.