Investments on the real estate market should be considered carefully. Particularly, commercial property implies high investment risk. Its location and space are far more expensive than residential property. Moreover, some objects may have gotten old. In this case the right strategy is: We only invest in very good locations with a long-term quality perspective.
When it comes to purchase of commercial real estate Morgenstern Holding always focuses on the most important value-added potential. This primarily includes:
- a forward-looking project development
- optimization of rental situation and earnings
- refurbishment
- repositioning
- improvement of the financing structure
- increased sustainability (Green Building)
We fulfill this task by applying proven and stringent approaches. The results are very good locations with property of high quality and a stable rental situation.
Purchase profile: office
Investment type
- Core
- Core+
- Value add
Investment size
- From 10m €
Markets
- Germany: Top 7-Cities, A- und B-cities
- United Kingdom & Ireland: Capital cities, A-cities
- The Netherlands: Capital city, A-cities
- Luxembourg: Capital city
- France and Belgium: Capital cities, A-cities, B-cities in appropriate locations
- Switzerland: Capital city
- Scandinavia: Capital cities, A-cities
- Spain and Portugal: Capital cities, regional conurbations
- Countries of Eastern and Central Europe: Praque, Warsaw, Krakow
Location quality
- CBD and other established office locations
Object quality
- 1A - office building
- Real estate renovation and / or need for rehabilitation
- Possible project developments
- Property
Rental contracts & tenant quality
- High rental potential
- Multi-party or single tenant
- WALT > 5 years
Soft criteria
- Even individual object investments of over €120 million are possible
- Inventory objects and project planning (turnkey)
- High-quality real estate with sustainable and stable profitability
- Suitability for mixed use (Office, retail, residential)
- Possibility of asset and share deals
Value add criteria
- Existing buildings with a short to medium value creation and development potential (i.e. conversions, short lead times, high vacancy rates, maintenance backlog, financial difficulties, inadequate property management, among others)
Purchase profile: retail
Investment type
- Core
- Core+
- Value add
Investment size
- From 10m €
Markets
- Germany: Top 7-Cities, A- und B-cities
- United Kingdom & Ireland: Capital cities, A-cities
- The Netherlands: Capital city, A-cities
- Luxembourg: Capital city
- France and Belgium: Capital cities, A-cities, B-cities in appropriate locations
- Switzerland: Capital city
- Scandinavia: Capital cities, A-cities
- Spain and Portugal: Capital cities, regional conurbations
- Countries of Eastern and Central Europe: Praque, Warsaw, Krakow
Location quality
- Very good population growth and general EH-site criteria and EH-relevant metrics
Object quality
- Modern, high-quality real estate
- Real estate renovation demand is possible
- Retailers / local centres
- Possible project developments
Rental contracts & tenant quality
- Multi-party
- Subsidiary retailers with high creditworthiness
- WALT > 5 years
Soft criteria
- Inner city business buildings, especially EH-use, retail warehouses
- Other types of use (office / residential) up to 20%
- No structural vacancy
- Possibility of asset and share deals
Value add criteria
- Existing buildings with a short to medium value creation and development potential (i.e. conversions, short lead times, high vacancy rates, maintenance backlog, financial difficulties, inadequate property management, among others)
Purchase profile: hotel
Investment type
- Core
- Core+
- Value add
Investment size
- From 10m €
Markets
- Germany: A- und B-cities
- Austria: Vienna
- United Kingdom & Ireland: Capital cities, A-cities
- The Netherlands: Capital city, A-cities
- Luxembourg: Capital city
- France and Belgium: Capital cities, A-cities, B-cities in appropriate locations
- Scandinavia: Capital cities, A-cities
- Spain and Portugal: Capital cities, regional conurbations
Location quality
- Inner city and established hotels
Object quality
- 2-4-star category / Businss hotels
- Good Guest Hotel ranking: higher than A
- Possible project developments
Rental contracts & tenant quality
- Leases of at least 15 years with strong credit rating operators groups (no management contracts)
- No ownership, no ground lease
Soft criteria
- High-quality, modern hotel objects
- Possibility of asset and share deals
Value add criteria
- Existing buildings with a short to medium value creation and development potential (i.e. conversions, short lead times, high vacancy rates, maintenance backlog, financial difficulties, inadequate property management, among others)