aam2core AG, a real estate-focused investment and asset manager, has been entrusted with the asset management of an extensive residential portfolio in East Germany. The client is ACCENTRO Real Estate AG, Berlin, the owner of the portfolio. This mandate covers approximately 3,400 residential units, spread across 145 properties with a total rental area of around 204,000 square metres.
The mandate strengthens aam2core AG's growing 'Residential' business segment and complements its 'Asset Management as a Service' division. The tasks include the creation and implementation of the business plan, the ongoing management of the existing properties, and the support of planned investment measures. Furthermore, aam2core will assist with divestment processes.
Strategic direction and operational implementation
A dedicated team has been assembled for the operational management of the portfolio. This team combines expertise from portfolio management, asset management, technical services, and controlling to centrally coordinate responsibility for all locations. The strategic focus is on reducing vacancies, maximising rental income potential, and targeted enhancement of the property assets.
Alexander Rotter, Head of Asset Management Residential at aam2core Holding AG, emphasised the importance of consistent portfolio development in East German medium-sized and small towns. He explained that targeted value creation could be achieved through reducing vacancies, unlocking rental potential, and upgrading the substance of the properties. The mandate makes it possible to manage these tasks holistically while also considering each property individually, which creates a robust foundation for long-term value development.
Katja Bielecke, CEO of ACCENTRO Real Estate AG, highlighted the importance of professional and location-specific further development of the portfolio as a crucial component of asset management. She stated that the goal is to specifically stabilise existing properties through economically viable re-letting. She justified the choice of aam2core as a partner due to its combination of regional market knowledge and overarching management capabilities, which allows for close support of the operational development of the properties.
Locations and portfolio characteristics
The properties are located in the federal states of Saxony, Saxony-Anhalt, and Thuringia. aam2core has branches in Berlin and Leipzig within the target area. The portfolio extends across medium-sized and small towns such as Klingenthal, Königswartha, and Seeland, as well as larger urban centres like Halle, Gera, and Dessau-Roßlau. These locations are characterised by stable rental demand. The buildings predominantly date from the 1950s and 1960s. The apartment mix is primarily dominated by two and three-room flats.
