HAMBORNER REIT AG is a stock corporation listed on the SDAX. It operates exclusively in the property sector and has positioned itself as an asset manager of commercial properties. The company has a diversified property portfolio that essentially consists of modern office properties in established locations, as well as retail properties focusing on local shops in city centre locations, neighbourhood centres, and high-footfall suburban locations in large and medium-sized cities in Germany.
Expansion of the existing portfolio
Along with the efficient management and development of the properties currently held, the corporate strategy at HAMBORNER REIT AG targets yield-driven expansion of the existing commercial property portfolio. The company pursues an active portfolio strategy based on a “two pillar model” and looks to invest in office and retail properties with an eye to regional diversification. Its objective is to ensure profitability of the property portfolio in the long term by acquiring properties with an attractive yield-risk profile.
With regard to the retail portfolio structure, the company aims to keep the focus firmly on food anchored and local supply retail properties, as this type of property creates a foundation for steady, long-term plannable rental income.
Investment therefore targets the acquisition of core properties in office and retail sectors defined by high-quality locations and buildings, tenants with good credit standing, and long-term letting.
Besides expanding the existing stable core portfolio, the acquisition strategy foresees investment in “manage to core” properties which offer additional value potential, specifically properties attracting greater leasing demand and those requiring redevelopment or repositioning. The company seeks to identify and develop existing appreciation potential based on the expertise at its disposal. In order to ensure that the overall portfolio maintains its structure, the company has set a target quota of around 10–20% of the total portfolio volume for properties classified as “manage to core”.
As a rule, the retail property investment volume should be between €10 and €100 million with respect to targets for future investments. In the office sector, the company has set an acquisition volume target of between €20 and €100 million.
If the investment opportunity is sufficiently attractive, the company will also consider portfolio acquisitions in the above-mentioned property segments.
Please find further information on the acqusition strategy here
As part of its investment activity, the company concentrates on large and medium-sized cities in German metropolitan regions that offer good growth prospects based on economic and demographic factors.
Metropolitan regions in Germany contribute the major share of national GDP, and enjoy the benefits of an outstanding public and private infrastructure. Not only do they cover major cities and urban centres, but also parts of the highly prosperous hinterland which is home to some exciting investment opportunities in the food retail sector. By contrast, the company focuses primarily on established office locations within the core cities of the metropolitan regions with regard to expanding the office portfolio.
This broad regional focus on metropolitan regions gives the company the flexibility it needs when selecting properties and continuing its steady growth.
In addition to yield-driven expansion of the portfolio, the HAMBORNER REIT AG strategy sets out to continuously optimise the existing portfolio. The company’s objective is to identify existing value-added potential within the portfolio, to develop it through targeted investment, and so to enhance the quality and profitability of the entire portfolio.
As part of its active and continuous portfolio management approach, the company will continue to divest itself of individual properties. To aid this process, all existing properties are reviewed through regular analyses focusing on their yield-risk profile and future prospects; potential properties for sale are then identified.