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.


Reduction in houshold 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 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%

Our form takes no more than 60 seconds to fill out and our team will get in touch to schedule a call at your convenience.

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