Adler Group focuses on Berlin, scales back development pipeline

Luxembourg-based real estate holding Adler Group honed its focus on the Berlin rental market in 2025, divesting non-strategic income-generating assets outside its core area. 

Adler Group

It also scaled back its development pipeline and advanced the completion of forward sale projects. To align with a smaller, more regionally focused portfolio, Adler adjusted its organizational structure while actively optimizing its financing. 
Key performance indicators for Adler's Berlin portfolio, comprising approximately 18,000 units, remain robust, with a very low vacancy rate of just 1.3% and like-for-like rental growth of around 3.5%. With an average rent of approximately €8.60/m2, Adler continues to provide affordable housing in the German capital.
During the year, Adler successfully divested its non-strategic residential portfolio, primarily located in North Rhine-Westphalia, along with the majority of its development projects. Eight project disposals were signed through structured and competitive sales processes, each achieving double-digit million purchase prices. All buyers are pursuing long-term development strategies that will lead to construction activities.
The disposed project portfolio includes Stolkgasse and Cologneo III in Cologne, Eurohaus in Frankfurt, Upper Nord Tower and Benrather Gärten in Düsseldorf, The Wilhelm in Berlin, Holsten Quartier in Hamburg, and Kaiserlei in Offenbach. Five of these have already closed, with the remaining three expected to close in 2026. Additionally, various non-strategic yielding assets, such as the Kornversuchsspeicher and a property in Hedemannstraße in Berlin, were also sold.
Operational progress extended beyond disposals. Adler secured Deloitte as the anchor tenant for its Ostforum project in Leipzig, leasing 8,000 m2 —the largest office lease in Leipzig in 2025. Food discounter Aldi, another anchor tenant, was the first retailer to open in the building. These developments significantly support the planned sale of the property, which is slated to commence in 2026 with JLL appointed as sales advisor.
Furthermore, Quartier Hoym in Frankfurt is anticipated to be completed by mid-2026, and Grand Ouest in Dresden by the end of 2026, followed by handover to the buyers.
Adler also substantially improved its financing cost structure and maturity profile. The successful refinancing of the 1L and 1.5L will lead to approximately €134 mln in interest expense reductions over the remaining term. Additionally, a €300 mln Adler RE bond maturing in 2026 was refinanced. With no bond maturities until 2028, Adler has significant flexibility in planning its next strategic moves.
The Board of Directors is being advised by Evercore to evaluate strategic options for the Berlin residential portfolio and its related financing structures.