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Manage-to-Core

This describes an investment approach for properties typically characterised by significant modernisation and letting requirements, possibly in combination with a repositioning requirement. This can result in additional potential for appreciation depending on the implementation of the work and market trends.

HAMBORNER REIT AG’s portfolio strategy

Besides the efficient management and ongoing development of its properties, HAMBORNER REIT AG’s corporate strategy is geared towards the yield-driven expansion of its existing commercial property portfolio.

The company uses an active portfolio strategy based on a two-pillar model and seeks to invest in office and retail properties with a view to regional diversification. It aims to ensure the profitability of the property portfolio in the long term by acquiring properties with an attractive risk/return profile.

Core properties

In terms of the structure of its retail portfolio, the company is focused on large-scale properties predominantly used for food retail/small shopping centres and DIY stores. Its investment focus for both office and retail properties is on the acquisition of core properties characterised by high location and building quality, a solvent tenant structure and a long-term letting situation. The company has defined a target of around 80% to 90% of its total portfolio volume for properties classified as core.

Manage-to-core-properties

In addition to expanding the existing core portfolio, the portfolio strategy provides for supplementary investment in manage-to-core properties that offer additional potential for appreciation. In particular, these properties are characterised by more significant rental, modernisation or repositioning requirements. The company intends to use its existing expertise to identify and leverage existing potential for appreciation. The target for the share of manage-to-core properties is 10% to 20% of the total portfolio volume. The target volume for investments in retail properties is typically between €10 million and €100 million. In the office sector, the company typically acquires properties with an acquisition volume of between €20 and €100 million. In the event of a sufficiently attractive investment opportunity, the company will consider portfolio acquisitions in the above property segments.

More information on HAMBORNER’s strategy and its implementation can be found in the management report section of our annual report.