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Domicil capitalises on German resi market’s key features

Although founded relatively recently, Munich-headquartered investment and property service provider Domicil Real Estate Group has made big strides in its two major business lines: the privatisation and management of residential real estate, and providing asset and investment management services for third party clients, notably institutional investors.

These institutional clients include Danish pension fund PFA, among the largest pension funds in Europe. Work for PFA has included the acquisition of one of the largest residential portfolios, a €750 million deal which took place in 2018, and in 2020 the €250 million purchase of one of the biggest micro-living portfolios in Germany.

“We combine high-yielding business of privatisation with the stable business of offering management services to international investors,” Domicil’s senior acquisition manager Kai Schubart explained. The combination guarantees stable income and downside protection for Domicil, he said.

As Schubart explained to Real Asset Insight’s Richard Betts, the German market is one of the most stable in which to invest. While that was once “boring” when high yields were top priority, it is this stability that is now highly prized.

Furthermore, as Germany is a federally organised state, unlike some countries does not just have one or two major cities for investors to concentrate on.

Click on the video above to watch the full interview or listen to the podcast below.