JV will focus on rental apartments suitable for sustainability-driven transformations across major German cities
Partners have earmarked €300m to target value-add investment opportunities through green retrofits and operational excellence
Frankfurt, 17 December 2024 – Urban Partners’ real estate investor Nrep has entered into a strategic joint venture focused on the German residential rental market with Frankfurt-based asset and investment manager aam2core Holding AG.
The €300m joint venture will cover the selective acquisition, modernisation and operation of rental assets across demographically attractive German cities and fast-growing metropolitan regions, in particular the seven most populous cities. The aim is to create an institutional-grade, sustainability-focused portfolio, achieved through energy-efficient renovations and exploring untapped building rights potential.
The partnership is based on a shared vision to unlock an attractive market opportunity by combining Nrep's sustainable investment and development credentials and aam2core's local operational and market expertise. This approach will help meet rising rental housing demand and offer residents more energy-efficient homes, whilst ensuring that the housing is compliant with tightening sustainability regulations.
The joint venture’s investment strategy will seek to complete the acquisition of properties within the next 18 months, investing €10m – €50m per project. A ‘brown to green’ approach will seek to transform older (1960s to 1980s), energy-inefficient (class D or worse) buildings that are typically comprised of 50 to 300 units. The aim is to modernise to a KfW 55 sustainability standard.
The joint venture has already signed its first acquisition in Cologne, a residential building with more than 5,000 m² of rental space and a reserve of building land. In conjunction with a green retrofit of the existing building, an additional 3,000 m² of new residential space will be developed.
Rune Kock, CEO of Nrep, said:
"The discrepancy between supply and demand in the German housing market remains acute. This, combined with the pressing need to accelerate the green transition of the built environment, has created a strong investment thesis for this type of sustainability-focused residential product. This represents the latest commitment from Nrep’s NSF V Fund, the €3.65 billion value-add fund that targets unmet societal needs arising from urbanisation, including the lack customer centric and sustainability focused housing in large and growing cities."
Jens Ebert, Member of the Management Board, aam2core, said:
“By combining our strengths, aam2core and Nrep are positioning the JV as a driving force in the German residential real estate market, with potential to quickly achieve scale.”
Paul Hohenstatt, Head of Residential Investments, aam2core, said:
“This joint venture combines economic profitability with ecological responsibility and sets a new standard for sustainable investment into German real estate."
Nrep was advised by POELLATH and PwC.
aam2core was advised by A&O Shearman.
About NREP
Nrep is a real estate investor committed to driving real change in the industry to benefit people and planet. Taking a holistic, long-term approach when investing across real estate segments, primarily residential, logistics, care homes and offices, Nrep is recognized for its ability to reimagining the built environment, including several large-scale neighbourhood developments. The company manages 8 million square meters of real estate projects across Denmark, Finland, Sweden, Norway, Poland, and Germany, and has more than 400 employees across Europe.
Nrep is part of Urban Partners, a platform of vision-aligned investment strategies shaped around urban problem solving.
About aam2core Holding AG
aam2core is a real estate investment manager for residential, office and logistics/light industrial properties for institutional and non-institutional investors. The subsidiary aam2core Service GmbH – BaFin-registered KVG – acquires and manages office properties for (semi-) professional investors in direct mandates and seven special fund solutions. Around 90 employees are responsible for investment assets of EUR 3.1 billion with an area of approx. 1.7 million m². aam2core invests in Germany and Austria. The headquarters are in Frankfurt am Main with branches in Berlin, Bad Homburg, Düsseldorf, Grünwald and Leipzig. The Management Board of aam2core Holding AG is made up of Jens Ebert, Stefan de Greiff and Michael Schleich.
For further details, contact:
Jannica Aalto, Communications manager, Urban Partners: jaaa@urban.partners
Cathrin Koenig, Head of Corporate Development, aam2core: investor-relations@aam2core.com
Press release 17.12.2024
aam2core Holding AG