ADLER – A major provider of residential properties in Germany

ADLER is one of Germany’s leading residential property companies with 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 the Group’s properties and business operations are located in Germany and benefit from the growth of the German economy in general and also favourable real estate market dynamics in German “B”-cities. The Group’s residential portfolio has been built up over the past five years by acquiring individual portfolios or shares in property holding companies – the latest being the acquisition of BCP.

ADLER’s core business model is the long term letting of flats and generation of sustainable cashflows with selective exposure to project developments with a “build and hold” strategy in “A” cities such as Wasserstadt Mitte in Berlin. To maximise long term profitability, ADLER’s residential real estate management business is complemented with opportunistic acquisitions and disposals. The newly acquired assets initially have a higher vacancy rate which is, following the acquisition, reduced through active asset management. All main functions relating to property management are carried out internally, with ADLER’s own staff. This includes activities of property and facility management which ADLER maintains through its subsidiaries ADLER Wohnen Service GmbH and ADLER Gebäude Service GmbH. Following the acquisition of BCP, ADLER is in the process of integrating the existing structures in the two independent companies – BCP and ADLER Group. The BCP portfolio is currently still managed by RT Facility Management GmbH.

With the acquisition of BCP, ADLER has not only acquired an attractive real estate portfolio, but also residential development projects in the city centres of Dusseldorf and Aachen. The commercial portfolio of BCP does not fit into the business model of ADLER. Therefore, a first part of about 37 percent of the total commercial portfolio were sold in the first quarter of 2019. ADLER expects to be able to dispose of the remaining parts of the commercial portfolio in the course of the 2019 business year.

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