Our Way of Securing Robust Returns for Professional Investors

For many years, d.i.i. Investment GmbH has handled the accounts of professional investors who wish to benefit from the safety and potential of Germany’s residential property market.

The secure and high-yield strategies that d.i.i. Investment GmbH pursues for the special AIF it offers to its professional clients focus primarily on portfolio management and development, but increasingly on the new-build construction of residential real estate, too. Investors and experts have praised our alternative investment funds for their extraordinarily reliable profitability, and recommend them more and more often as a key component of asset-accumulation strategies.

Our proven strategy for our institutional clients, which is to invest in larger-scale existing properties with potential for income optimisation, is nicely illustrated by a portfolio asset in Oldenburg. The property, which we acquired for one of our investment funds, covers a total residential area of 17,796 square metres, divided among 321 residential units. In this case, capital improvements and building additions in particular helped to seriously boost the property’s rental income and its eventual sales value at the end of the holding period of roughly ten years.

Improvements of the common property included refurbishing the façade, replacing some of the windows, and upgrading the thermal insulation. In addition, balconies were added in order to enlarge the lettable area. By renegotiating all of the master agreements for things like waste removal, common-area electricity, antenna system and insurance policies, we achieved noticeable service charge savings that benefited the incumbent tenants. Vacated flats are fully refurbished and subsequently re-let on higher new-tenancy rents.

Even without major investments in developments, we manage to increase the rent revenues for our institutional investors. A good case in point is the acquisition of a residential portfolio in Singen near Lake Constance that includes 426 residential units on a combined floor are of 26,500 square metres. As an investment location, the mid-size city of Singen in southern Baden-Württemberg boasts everything that our in-house research watches out for: a prospering economic region, a large number of major companies, a robust middle-class constituency, high purchasing power, declining unemployment and positive demographics.

At the time we acquired them, the properties were already extensively modernised while still offering significant rent upside potential. The last rent review already dated back five years, so that raising the passing rents was a legitimate option. In addition, the rent had not yet been adjusted in the wake of the modernisation measures the seller had conducted. In conjunction with the usual tenant churn, new tenancy rents were also raised. The secure and growing market environment also implies the option to exploits infill densification potential in the course of the holding period and to develop potential infill sites or, alternatively, to sell such plots.

Your contact person

Michael Fuchs

Phone +49 611 95 01 68 - 515

d.i.i. Invest

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