Real Estate Investors in Southern Germany: These Investors are Buying

Real Estate Investors in Southern Germany: These Investors are Buying

Southern Germany includes the federal states of Bavaria, Baden-Württemberg, and also often Hesse, Rhineland-Palatinate and Saarland. With the Munich and Nuremberg-Erlangen-Fürth conurbations, the Stuttgart region, the Rhine-Main area and the Ludwigshafen-Mannheim-Heilbronn area, Southern Germany has several major municipalities. In total, more than 35 million people live in the five federal states – more than 40 percent of the German population. Their economic output reaches almost half of the German gross domestic product. It’s no wonder that Southern Germany is an interesting market for real estate investors, so this article will present three particularly relevant investors.

The companies presented are part of our list of largest real estate investors in Germany.

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1. KOEHLER GROUP – Investment focus: residential, office, and logistics

The KOEHLER GROUP is the family office of the Stuttgart entrepreneur Rene Marius Köhler. It focuses on the three business areas of corporate investments, real estate and investments. A few years ago, Mr. Köhler sold the majority of his company Internetstores, the European eCommerce market leader for bicycle trade and outdoor articles. In the real estate sector, investments are made in apartment buildings and commercial real estate. The regional investment focus is on university towns in southern Germany and the associated catchment areas. The current focus of the portfolio is the Stuttgart metropolitan region, with exemplary properties in Schwabstrasse, Bebelstrasse or Gaisburgstrasse. In the future, the real estate business will be expanded.

2 ACCUMULATA Real Estate GmbH – Investment focus: office, retail, hotels, and residential properties

The ACCUMULATA brand has been around since 1982 when ACCUMULATA Immobilien Development GmbH – a classic project developer – was founded in Munich. In 2018, the company merged with Valerium Real Estate GmbH, also founded in Munich in 2015. Since then, the company has been operating under the name ACCUMULATA Real Estate GmbH – a combination of the two names. ACCUMULATA aims to seek and create opportunities to increase the value of real estate. The company’s business model is to profit from the added value generated in this way. The company continues to focus on project developments – either within the framework of new buildings or in the case of existing properties.

So far, ACCUMULATA has primarily been involved in projects in Munich. Exceptions are the Forum Steglitz Berlin project brought in by Valerium and a commitment in the USA to establish “Hofbräuhäuser”. In the future, however, the investment focus will clearly be on Southern Germany. Here, ACCUMULATA purchases properties with the following characteristics:

  • Office properties, retail properties (specialist stores and local supply centres, shopping centres, department stores), hotels (including boarding houses), residential complexes and apartment buildings. Preference is given to properties in the Value-Added and Opportunistic risk classes with high vacancy rates or soon-to-expire leases;
  • Properties in the greater Munich, Frankfurt and Stuttgart areas, as well as in prospering regional centres and university towns in southern Germany (e.g. Augsburg, Heidelberg, Ulm);
  • The properties should have inner-city locations, central district locations or central locations in surrounding municipalities;
  • The investment volume for individual properties should be at least EUR 15 million; real estate portfolios are acquired from EUR 50 million (at least EUR 15 million per individual property);
  • Suitable plots of land are also sought for project developments within the framework of new construction projects.

3. Octogon Capital GmbH – Investment focus: commercial real estate with value enhancement potential

The octagon is the trademark of Octogon Capital GmbH. The company, based in Taufkirchen near Munich, was founded in 2011 by Ulrich Wagner, the owner of the UBG Group – a Leonberg consulting company with a real estate focus – and the Munich real estate entrepreneur Alexander Reichl. Octogon prefers to invest in commercial real estate with the aim of achieving and realizing value increases through new utilization concepts and revitalizations. With this focus, commercial properties are purchased throughout southern Germany.

A typical example of an Octogon project is CUBE MÜNCHEN SÜD – an office property consisting of two architecturally different buildings from the 1970s and 1980s. The complex covers an area of around 15,000 sqm. Both buildings were redesigned and extensively modernised with creative means to form a unit with a contemporary and attractive appearance. This made it possible to successfully re-let the complex after half of it had originally stood empty. Within one year, a letting rate of 100% was achieved.

Octogon invests in commercial real estate in southern Germany in the range of 3 to 50 million euros. We are looking for office properties, business parks, industrial and logistics properties, but also mixed-use properties. The buildings should show potential for value appreciation – for example, through currently high vacancy rates, letting below market level, upcoming new leases or lease extensions. Conversion approaches or revitalisation measures should be recognisable. An increase in value through fundamental new construction is also interesting.

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