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.