de en

Investment Strategy

Our main focus is Germany, with interests also in Portugal, where structural market imbalances exist in the supply and demand of residential and commercial properties.

Addressing such structural market needs with the right development solutions, provides for long-term investment success and strong growth prospects. This is achieved by either directly investing into large-scheme development projects or real estate developers.

As a fully integrated real estate development platform, Aggregate Holdings is covering the entire value chain in its investments: from acquisition and financing to planning, development and marketing with the aim to then either sell to third parties or keep as yielding asset for the long-term.

Build & Hold assets

Development assets –constructed and held long-term for rental income genereation

Build & Sell assets

Development assets –constructed and (forward) sold to third parties for revenue generation

Financial real estate assets

Investments with higher liquidity, either long-term strategic assets or opportunistic short-term assets

Strategy – Strong focus on value creation

1
Growth opportunities

Off-market investment opportunities

  • Plots / projects
  • Real Estate Developers
More >
2
Real Estate Development

Value creation

More >
3
Capital Recycling

Forward-sale

Reinvestments

Selective holdings

More >
4
Financing Optimization

Sustainability

More >

Aggregate Holdings

Growth opportunities
Sustainable value creation
1
Growth opportunities
  • Access to unique off-market transactions
  • Long-lasting business network established across Germany & other EU countries
  • Positioned to acquire further plots and / or real estate developers
2
Real Estate Development
  • Development profits as key driver of value creation
  • Selective assets developed to own
  • Profitable utilization of own land reserves
3
Capital Recycling
  • Specialist in forward-sale to institutional investors and condo selling to individuals
  • Reinvestment of profits into acquisition of identified pipeline
4
Financing Optimisation
  • Wide and structured approach to construction financing
  • Ability to further optimize existing capital structure
  • Broad network of international lending partners

”Build & Hold“ assets

Selective development assets sourced to keep long-term as yielding assets after construction.

Inhouse project management and development combined with optimised financing solutions maximise the basis for strong value accretion of these projects post completion while assets are let out and generate rental cash flows.

”Build & Sell“ assets

Development assets sourced to sell to institutional investors, mostly on forward sale basis during construction.

Development margins are enhanced by optimising project financing in conjunction with forward sales and effective capital recycling.

The efficient matching of construction milestones with received deposit payments on (forward) sales allows for cash flow optimisation and project risk reduction.

Financial real estate assets

c.6% STAKE IN ADLER GROUP
OTHER ASSETS INCLUDING LIQUID SECURITIES, NON-CORE PROJECTS AND OTHER INVESTMENTS

Aggregate holds a c.6% stake in Adler Group SA ("Adler Group"), one of the largest residential real estate players in Germany. Adler Group has significant footprint in the Top 7 German cities and also provides a strong platform for growth through its build-to-hold landbank.

Adler Group is an integrated residential platform with unique organic growth pipeline, secured at attractive land values with an experienced development team and platform. It has c.20% reversionary potential across the yielding residential portfolio delivering sector leading LFL rental growth of +4.3% and structurally low vacancy of 3.8%. There is significant NTA value uplift potential from the development pipeline. Adler Group has an ESG rating of 10.7, certifying a low ESG risk, ranking the company within the top 5% rated real estate companies under global coverage.

In December 2021, Adler Group, achieved an transformational milestone with the signing of a portfolio disposal of c.15,500 units generating net cash proceeds of EUR 800m, alongside the sale of 7% stake in BCP to LEG, while granting LEG an irrevocable tender commitment for all its remaining BCP shares until 30 September 2022 totalling EUR 850m. Disposals at a premium to its current book value re-iterates the strong fundamental quality of Adler’s portfolio and demand for residential real estate assets across Germany.



Visit ADLER Group Website