Family Office – Case Study
Outstanding execution of strategy in Portfolio I — Hamburg, Germany
Location
Hamburg, Germany
Generated over 310bps of outperformance in rent controlled , expensive & hard to source city of Hamburg.
Hamburg is one of the most expensive cities in Germany with strong rent controls. The client could not find residential investments at attractive prices at scale.
Using our IMMO intelligence platform, we carried out extensive market assessment for volume, transactions, locations.
5.8%
Average GEY vs market of 2.7%
€3.6Bn
Evaluated of available single unit assets
14 months
Achieved average tenancy of 14 months with rental income
Opportunity
Germany has strong demand for housing in “Top 7” cities.
Strong population growth, large share of renters and reduction in household size drives the demand.
Strong population growth
Population growth in Top 7 cities vs. rest of Germany.
High % of rents
Distribution between owners and renters.
Problem
Attractive yields in Germany but impossible to source at scale or speed in good locations
German markets offer 2-3% unfurnished yields. IMMO can add over 350bp to these returns.
Solution
Use IMMO Intelligence to create portfolios that no other fund can.
Create large portfolios of residential income from Single Unit Assets.
Sourcing Summary
In 12-months, IMMO has 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 IMMO’s Hamburg Leads
Results
Analysed
20.2k+ | €3.6bn
Properties using IMMO’s proprietary technology
Inspected
680+ | > €120m
Of in-person inspections, by IMMO’s local team
Deployment request
€2.3bn
For residential asset across UK & Germany
Assets
>70
Assets Under Management
Average Tenancy Length
14 months
Providing stable cashflow streams for buyers
Yield
5.8%
Average Gross Entry Yield across acquired properties
Outstanding rental income with Single Asset Rental strategy
Gross Rent (Market vs. Actual)
In-Place Gross Rent (Annual)
Market
€12
psm
Actual
€27
psm
+€15
over market
Gross Yield (Market vs. Actual)
In-Place Gross Yields (Annual)
Market
2.7%
Actual
5.8%
+3.5%
over market
Occupancy Rate
On current ready-to-let portfolio
90%
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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
Happy in Hamburg
Our track record in a rent-controlled, expensive and hard to source city
>20,000
Sourced assets worth €3.6BN evaluated from 27 data sources
680
Cherry picked assets for inspection capturing 280 data points per asset
76
Acquired prime assets. Offer stage within 72 hours, strong position as reliable cash buyer
5.8%
Generated in gross yield vs market gross yield of 2.7%
€27m²
Generated gross rent vs. market rate of €12m²