Residential Real Estate

Enabling Affordable Living

In 2019, investment transaction volumes in European residential real estate overtook retail property for the first time as investors recognised the potential this asset class has to offer in delivering both long-term secure income and capital-value growth.

 
 
 
     
 

Residential – Enabling Contemporary Affordable Living

The resilience and strength of residential was further demonstrated in 2020, when the Covid-19 pandemic pummelled the retail sector which was already suffering from competition in the growth of e-commerce as well as hitting the commercial office sector as people retreated to their homes to work. As urbanisation trends continue to raise demand and put pressure on the insufficient supply of housing in European cities, residential real estate, in all its guises, still represents a sound investment category.

We have built a dedicated and experienced pan-European team which has access to an extensive network of local partners, with deep market knowledge on the ground.  With experience extending back to 2007, we are active in several areas of the housing market, including student accommodation, where we launched a fund in 2017. We have delivered outperformance for our clients by developing and using strategic top-down market intelligence combined with research-driven investment strategies (top-down and bottom-up). We also apply the micro skills needed to succeed in the EU’s highly fragmented and strongly regulated residential investment.

Residential Real Estate

Our strategy is based on the following key tenets:

  • We invest in residential assets in select target countries across Europe, thereby diversifying the risk profile of our funds through the low correlations in performance between regional markets.
  • We particularly focus our investments on regions with strong and varied concentrations of knowledge-intensive industries and above-average economic performance. Such general characteristics have proven favourable for the return on investment in housing in recent years, and we believe this will continue to be the case.

Investment Criteria

  • Modern, affordable residential real estate assets (existing buildings and turnkey projects) with a minimum investment of €15 million to a maximum of €60 million
  • Pan-European with a focus on, Austria, Denmark, Germany, Italy, the Netherlands and Spain
  • Cities (100,000-plus population size) or smaller towns (circa 50,000 residents) in metropolitan areas which demonstrate positive demographic growth
  • Commercial plots in Germany and Austria located on the edge of residential areas with and without planning permission and building permits
  • Commercial buildings with the potential for conversion into residential in Germany and Austria
  • Subsidised housing, micro-living and student accommodation (fully-furnished; without operator)
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‘We look to acquire future-proof buildings and floor plans which correspond to the long-term approach of our investors and embed ESG as a strong performance consideration for yield.”’

Peter Renk , Partner

Residential Real Estate
 

Urban living

Urban living is being redefined as our cities become more dynamic and international, and while we have yet to see how profound and lasting the impact of the Covid-19 pandemic will be on these long-term trends, the way we live and work continues to evolve.

 
 

The Future

Residential real estate investing has come of age, but shortfalls in rental housing supply relative to strong demand across many major cities in Europe mean there is still plenty of opportunity for experienced investors to meet this need and to also play a role in enabling the development of our cities.

 
 

New residential concepts are emerging, for example there is a shift towards smaller apartments which cater to young professionals and single-person households. Residential developments for families increasingly incorporate shared amenities, such as retail and leisure facilities, kindergartens and work hubs. New complexes with on-site medical and care facilities are replacing nursing homes, to help older people remain in their homes for longer.

In the densely populated cities of Europe, cutting-edge modern technologies, ‘the Internet of Things,’ are increasingly fundamental to reducing energy consumption, running our homes, streaming our entertainment and perhaps, in the future, will be universally utilised to monitor our health. These technological advances are also driving the evolution of our cities.

 
 

Primevest shares the values of our investors and we maintain a sharp focus on environmental and societal criteria as we deliver the modern urban living concepts and affordable accommodation our cities’ populations are seeking.

Increasing urban density combined with constrained land supply are making new homes more compact and driving the evolution of contemporary formats. This is already evident with the emergence of micro-living apartments which are becoming more mainstream as people seek affordable and modern homes in the most popular urban destinations. These new housing concepts all bring different demands such as collective meeting rooms, private outdoor areas, in-house recreation and workspaces; kindergartens and schools on-site; Integrated medical facilities and e-commerce hubs. Some, or all, of these facilities may play a role in new developments for the enablers of modern living, especially in a post-Covid-19 pandemic world. This residential evolution is not just confined to younger generations, older people too are moving back into cities – often into purpose-built senior living complexes, near to all the amenities that urban centres offer.

It is these broader trends that underpin our residential investment strategy, since we believe that it is this combination of societal, environmental and technological advances that will enable our future cities.

 
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Projects

 
 
 

Residential project in Berlin, Germany

A modern residential complex with a total of around 10,000 m² of living space and 135 apartments in Berlin.
 

Urban city lofts in the center of Eindhoven

The former Philips Lighting main office of 33,000 sq. m., now called…
 
 

Residential project in Graz, Austria

Primevest acquired 86 subsidised apartments in Graz for €18.5 mln in 2020…
 
 

Residential project in Diemen, The Netherlands

Primevest took over the newly completed Block 20 residential building in the…
 

‘Our philosophy is to establish a trusted and sustainable partnership with our investors and manage our investment mandates as if the money was our own.’

Olaf Steinbusch , Senior Acquisition Manager

News

 
 
 
19.11.2021   News

Primevest Capital Partners acquires residential development in Germany on behalf…

Pan-European investment manager Primevest Capital Partners (Primevest CP) has acquired a residential development in the city of Saarbrücken, Germany for approximately €15…

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