Family office case study

Outstanding execution of strategy in Portfolio I — Hamburg, Germany

Location

Hamburg, Germany

Generated over 310bps of outperformance in the hard-to-source city of Hamburg

Hamburg is one of the most promising rental cities in Germany. The client could not find residential investments at attractive prices at scale.

Using IMMO Capital’s intelligence platform, we carried out extensive market assessment for volume, transactions and locations.

5.7%

Average gross entry yield achieved vs market of 2.7%.

€20bn

Worth of single-family rental (SFR) assets evaluated.

14 months

Average tenancy with rental income achieved.

Opportunity

Germany has strong demand for housing in the “Top 7” cities

Driving the demand is strong population growth, high volumes of renters and a preference for smaller household sizes.


Strong population growth

Population growth in Top 7 cities vs. rest of Germany.


High % of rents

Distribution between owners and renters.


Reduction in household sizes

Percent of households comprising 1 or 2 people.

Problem

Attractive yields in Germany, but impossible to source at scale or speed in good locations

German markets offer 2-3% unfurnished yields. IMMO Capital can add over 350bp to these returns.

Solution

Use IMMO Capital’s intelligence to create portfolios that no other provider can

We help create large portfolios of SFR assets at speed and scale.


Sourcing summary

In 12-months, we identified over 20,000 unique leads, providing scale of leads to deliver on bespoke investment criteria according to investor demand.

For IMMO’s first investor, this has resulted in:


Map of our Hamburg leads

Results

Analysed

27,000+ | €20bn

Properties using IMMO Capital’s proprietary technology

Inspected

1,000+ | > €422m

Conducted in-person by our local team of experts

Institutional capital commitment

€1.5bn

For residential assets across Germany

Assets

>87

Assets under management

Average time-to-let

8 days

Before asset is completed

Yield

5.7%

Average gross entry yield across acquired properties

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Case studies

Hellbrookstieg 8
(Barmbek-Nord)

50 sqm

1 Bedroom

1953

€240,000

Before renovation

After renovation

Achieved metrics

UW Rent

€1,100

Achieved rent

€1,280

vs. UW +16.3%

Achieved gross yield

6%

Refurb costs

€16,353


Reventlowstrasse 30 (Othmarschen)

93 sqm

2 Bedroom

1932

€405,000

Before renovation

After renovation

Achieved metrics

UW Rent

€2,300

Achieved rent

€2,400

vs. UW +4.3%

Achieved gross yield

7%

Refurb costs

€8,013