4 Real Estate Investments in Germany

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Written By Adrian Cruce

 

 

 

 

 

Traditional investing strategies in German real estate involve purchasing properties that you will rent out. Unfortunately, this can be an expensive endeavor that requires finding suitable properties and securing mortgage loans.

Now that prices are on the upswing again, this has generated much excitement among investors. Let’s examine some of our options:

1. Adler

The Adler Group specializes in the purchase, management and development of income-producing multifamily residential real estate properties across Germany. Their portfolio consists of apartment buildings in Berlin as well as other cities. Their operations can be broken down into Residential Property Management, Adler RE, Consus and Privatization segments; with the company itself located in Berlin. Their benefits include having access to an expansive portfolio managed by experienced management team as well as offering investors various services.

While Adler may appear stable at first glance, short-seller Fraser Perring’s report in October 2021 strongly accused it of fraud and suggested some leaders of enriching themselves at the expense of bondholders and shareholders. According to Perring’s allegations, Caner and some of his associates used Adler to sell assets at inflated prices to undisclosed entities while collecting unwarranted fees from Adler.

On Wednesday, prosecutors raided Adler offices and Caner properties in Luxembourg and Berlin as part of an ongoing investigation into their 2019 sale of an old glassmaking factory in Dusseldorf-Gerresheim to Josef Schrattbauer – an action which became the subject of much contention among creditors who claimed that its terms weren’t equitable for everyone involved in the deal.

As soon as Adler was exposed for its misdeeds, its share price plummeted and auditor resigned in response. By early 2022 it had become evident that full repayment of debt would likely never occur and that investors were filing lawsuits alleging mismanagement of assets by Adler.

Adler ultimately was able to reach an agreement to restructure its debt. Under this new arrangement, Adler’s debt will be paid back over five years instead of two. Adler can then focus on growing existing business lines such as asset management and new investments in Germany while remaining financially sound through cash and equity from KKR as well as managed funds as funding sources; additionally they expect an improved interest rate thanks to adding a senior debt tranche with lower rates of repayment.

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2. Hamborner REIT

Hamborner REIT is a German real estate investment trust specializing in retail space located near Duisburg and owned by shopping centers, specialty stores, office space and medical centers. Hamborner REIT is publicly listed on the DAX exchange.

REITs have long been used as an investment vehicle, yet are relatively new relative to traditional real estate investing. REITs have an established track record of providing investors with high dividend yields and moderate long-term capital appreciation; they may even outpace traditional investments due to being affected by market trends; for instance, during COVID-19 pandemic many employees worked from home more frequently, which reduced office space demand significantly and caused some REITs to experience reduced returns.

One of the major advantages of REITs for investors is diversification. Investors can invest in multiple types of property to reduce overall risk by diversifying across areas. REITs may also offer passive income – ideal for investors seeking reliable returns without taking on active management responsibilities.

REITs provide more liquidity than traditional real estate investments, being traded on stock exchanges and therefore more accessible for buy and sell transactions. This can be particularly valuable to investors seeking to diversify their portfolio or jump in at an advantageous deal early on.

Technical stock analysis tools allow traders to assess Hamborner REIT AG’s current market value against historical price patterns, providing insights into potential upside and downside momentum, shifts in sentiment, or signals of possible trends in the market. One such indicator is serial correlation; this tool measures the degree of correlation between Hamborner REIT’s stock price and an indicator such as Durbin-Watson test’s correlation index and Hamborner REIT stock price, giving an indication if there exists a trend in the market and providing traders with insights into potential impacts positive or negative serial correlation may have on Hamborner REIT stock price.

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3. Patrizia AG

PATRIZIA is one of Europe’s premier real estate investment managers and works with more than 500 institutional investors ranging from small to large. Their extensive expertise across different asset classes enables them to provide comprehensive support across the entire value chain and offer additional services and options that help minimize risks, increase returns, and optimize performance.

PATRIZIA plays a proactive role in shaping the future of real estate, evidenced by its commitment to sustainability and its understanding of its responsibility to society as a whole. Real estate plays an integral part in providing basic human needs such as housing and work spaces; healthcare infrastructure; transportation of goods; as well as contributing significantly to global energy consumption and emissions that drive climate change.

Due to these initiatives, the company has pledged to become carbon neutral by 2040 while also creating a new fund series focused on investments that enable sustainable and low-carbon buildings. Furthermore, a foundation was set up so children worldwide have access to education and training.

Patrizia’s revenue is generated primarily through management services, particularly real estate-related ones. Additionally, Patrizia generates profits from sales of property as well as returns from co-investments and principal investments.

This company provides an array of real estate management services, such as acquisitions, long-term portfolio management and disposals. Furthermore, the firm offers advisory services to clients while investing directly through licensed investment platforms. Branch offices of this business exist in Berlin, Frankfurt, Hamburg and Amsterdam.

In September 2021, Patrizia acquired Whitehelm Capital, an international infrastructure manager that tripled Patrizia’s AUM to EUR 5 billion. Additionally, in June 2022 they introduced a fund series dedicated to investments in property technology which can create sustainable buildings with lower carbon footprints.

Timetric’s “PATRIZIA Immobilien AG (P1Z): Strategy, SWOT and Corporate Finance Report” offers in-depth information and data about this company and its operations. The report explores their structure, operation, SWOT analysis, product and service offerings, recent developments, key employees as well as benchmarking data – among other areas.

4. BUX Zero

BUX Zero is Europe’s fastest-growing neobroker and has been making it easier for new generations to access the stock market since 2014. Clients can trade fractional shares, ETFs and cryptocurrencies all from one native mobile app – the platform can be found across The Netherlands, Belgium, Germany France Spain Austria

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Comparative to traditional online brokers, BUX Zero boasts much lower transaction overheads compared to many of its challengers due to taking its back-end brokerage license and technology in-house rather than outsourcing it as many do. CEO Nick Bortot of BUX Zero stated this gives them more control over “the full value chain”, leading to more efficient operations and business operations overall.

The broker has also introduced several innovations to streamline and user-friendly the investment process, such as supporting leverage trading which allows traders to open positions larger than what their investment capital permits them to open. Leverage trading increases exposure to markets while potentially amplifying profits if successful trades materialize, but risk can become magnified quickly so it is crucial that an established and rigorous risk management strategy be put in place prior to commencing such trades.

BUX Zero boasts an easy-to-use app and multilingual customer support services. Furthermore, upon sign-up it provides users with up to EUR200 of a free share worth up to EUR200; its pricing chart is transparent while an estimation tool helps users calculate overall costs based on what and how much is being invested in.

BUX Zero places client security as its top priority, using powerful encryption technologies for all communications with clients and keeping client funds segregated into separate bank accounts for maximum safety. In addition, negative balance protection safeguards against losing more money than you deposit; their EUR1 Million insurance policy gives clients peace of mind when investing with them.

Opening an account with BUX Zero is simple and fast, thanks to their user-friendly website that features an investment guide for first-time investors, as well as intuitive app. Your deposits and withdrawals can be processed within one to two working days via bank transfers while instant Tikkie deposits.