ADLER – A major provider of residential properties in Germany

ADLER is one of Germany’s leading residential property companies with a focus on affordable housing. Its portfolio is primarily located in – or on the outskirts of – large and growing conurbations in northern, eastern and western Germany and has considerable upside potential in terms of revaluation gains, vacancy reduction and rent uplifts. All of the Group’s properties and business operations are located in Germany. The Group’s residential portfolio has been built up over the past six years by acquiring individual portfolios or shares in property holding companies. 

ADLER’s core business model is the long-term letting of flats and generation of sustainable cash flows with a selective exposure to project developments with a ‘build and hold’ strategy preferably in ‘A cities’. To maximise long-term profitability, ADLER’s residential real estate management business is complemented with advantageous acquisitions and disposals. Newly acquired assets initially have a higher vacancy rate which is reduced through active asset management. All main functions relating to property management are carried out internally through ADLER’s own staff. This includes property, facility and energy management activities, which ADLER maintains through its subsidiaries ADLER Wohnen Service GmbH, ADLER Gebaeude Service GmbH and ADLER Energie Service GmbH. The BCP portfolio is currently managed by the group company RT Facility Management GmbH.

 This structure will most likely be maintained after ADLER has been taken over by ADO Properties and has formed a combined entity with ADO Properties via a Business Combination Agreement. 

The commercial portfolio of BCP does not fit ADLER’s business model. As a result, around 70 percent of the total commercial portfolio has recently been sold in several transactions, with the remaining assets actively being marketed for disposal. This orientation will not change after the takeover by ADO Properties as ADO Properties is focussed on residential properties as well.