Investment strategy
Due to our many years of international experience, we are able to implement core, core-plus, value-added and opportunistic strategies.
Core: This is a low-risk/low-potential return strategy with sustainable cash flows, which is almost exclusively financed by equity. We invest in stable, fully-let multi-tenant real estate in strong economic centres, which primarily serves the purpose of value preservation.
Core plus: This is a moderate-risk/moderate-return strategy. We principally invest in core real estate. However, these enable value increases through appropriate measures, such as new leases (value-added element).
Value-added: This is a medium-to-high-risk/medium-to-high-return strategy. This involves the realisation of value increasing measures after the acquisition of real estate, for example, by reducing vacancies, space optimisation or renovation. Value added real estate is often connected with management or operational problems, sometimes requires structural changes and/or has financial problems, often combined with a subsequent sale to core and core plus investors.
Opportunistic: This is a high-risk/high-return strategy. This involves tactical investments. The real estate requires intensive improvement measures. This strategy also involves the investment in project developments, building land, mortgage-encumbered real estate and niche real estate sectors. This will normally involve short-term investments with 24 to 36 months of workload until the point of sale.
Often combined with a specific portfolio expansion with the aim of reselling at a later date after the realisation of a significant potential for increasing value.