The business model of ADLER Real Estate AG is focussed on sustained management of the existing rental portfolio. For this purpose, ADLER maintains s professional asset management and a property management subsidiary which manages the whole portfolio since the beginning of 2018. As other subsidiaries have taken over facility and energy management in most locations as well, ADLER has transformed into an integrated property group that offers its tenants all tenant-related services from a single source.
ADLER intends to further expand its residential portfolio with future acquisitions of shares in companies or individual portfolios and will continue to focus its investments on residential property portfolios in “B” locations and on the outskirts of large conurbations, where the rental yields are typically higher than in inner-city “A” locations. When suitable market opportunities arise, ADLER also supplements ist portfolio by investing in so-called “A” locations in mid-size cities or “A” cities, such as Berlin, in order to benefit
from value growth in these markets. The acquisition of BCP was a step in this direction.
It became apparent in 2017 that the strategy of growth centered around acquisitions of residential portfolios alone needed to be adapted in order to align the company with the changing trends, as suitable portfolios on the market became more difficult to source, especially at attractive prices. ADLER therefore decided to supplement its previous strategy by also investing in the densification of its own portfolio, in loft conversions in suitable residential estates and even in completely new developments. The acquisition of Wasserstadt Mitte in the developing new Europacity in the middle of Berlin is one example. Another is the acquisition of BCP, as BCP is also active in project development. Inevitably, this kind of investment does not immediately contribute to cash flow, and instead requires advance financing. However, over the long term – an appropriate perspective for property holding companies – investments of this sort can contribute significantly to increases in the value of the company.