The SIM Group, an investment and management partner for residential properties active in Germany, has received an exclusive letting mandate for two residential portfolios in Saxony-Anhalt. The client is an institutional investor. The mandate comprises properties with a total of approximately 410 residential units in the cities of Halle (Saale) and Halberstadt. The aim of the commission is the structured reduction of current vacancies in both portfolios and the return of the units to a stable letting situation.
The portfolio in Halle (Saale) includes 190 residential units, of which approximately 60 are currently vacant. These properties are predominantly prefabricated panel buildings, characterised by largely identical floor plan types. Despite the existing competition in the housing market, demand potential is still identified in the city. The second portfolio is located in Halberstadt and comprises approximately 220 residential units, of which around 70 are currently unlet. The buildings there date from the 1990s and feature various floor plan options.
Strategic marketing and vacancy reduction
As part of the exclusive mandate, the SIM Group will undertake the complete marketing of the residential units concerned. The focus is on positioning the units in line with market conditions. This includes the development of a specific letting strategy that foresees a combination of pricing, product features, and services. The aim is to achieve clear differentiation from the competition and to increase the attractiveness of the offerings.
The institutional investor's decision to entrust the SIM Group with this mandate was based on a collaboration that had already been successfully implemented. This cooperation took place in another residential portfolio near Leipzig, where a significant reduction in vacant residential units was achieved. Mandy Flieger, who is responsible for the portfolio at the SIM Group, noted that for larger residential portfolios, letting success rarely depends on a single factor, but rather on the interplay of product quality, a well-thought-out pricing strategy, and consistently organised marketing. This is where the company comes in.
Portfolio details
- —Halle (Saale): 190 residential units, of which approximately 60 are vacant, predominantly prefabricated panel buildings.
- —Halberstadt: Approximately 220 residential units, of which about 70 are vacant, buildings from the 1990s with variable floor plans.
- —Total number of residential units: approximately 410 units in Saxony-Anhalt.
The SIM Group will leverage its expertise to efficiently manage the identified vacancies in these important regional portfolios and to sustainably improve profitability for the institutional investor.
