AM Alpha at 20: Value-add strategy fuels growth

Munich-based family office AM Alpha is navigating a real estate landscape that CEO Martin Lemke describes as "waking up", albeit at a measured pace.

Martin Lemke

In a conversation with CRE Media Europe in Cannes, Lemke detailed how the firm, which is celebrating its 20th anniversary, is leveraging its independence and "value-add" expertise to bridge the gap between volatile capital markets and a recovering occupational landscape.

"The real estate market is still muted compared to the peaks of 2019–2020," Lemke noted. "But we are seeing a slight increase in transactions. It’s a fragmentation story now: Paris and London are 'hot', while the peripheries and regional markets are still finding their footing."

AM Alpha remains a "continuation investor"—a steady, independent vehicle focused on Western Europe and Asia. For 2026, the firm’s strategy is clear: focus on Pan-European logistics and offices with a twist.

"We are value-add players most of the time," Lemke explained. "We buy offices to bring them to Grade A and then lease them up. For us, the doors are open for acquisitions."

While the firm is active in established hubs like the UK, France, Spain, and Portugal, it is also eyeing new frontiers, with high interest in Milan, alongside explorations in Dublin, the Netherlands, and Luxembourg. According to Lemke, AM Alpha is focused on repositioning assets to meet modern standards rather than chasing specialised niches like data centres or life sciences.

Residential property remains the most sought-after asset class in 2026, but Lemke was candid about the mathematical hurdles facing investors today.

"Everybody is interested in residential, but it’s hard to make the numbers work. Construction costs are high, and prices are high. Rentals cannot just 'skyrocket'—it doesn't make sense. It's a balancing act we are working on."

Conversely, the firm is finding renewed success in retail, a sector it championed even when it was out of favour with institutional peers. AM Alpha continues to see logistics and retail parks as strong performers.

Reflecting on the general sentiment in Cannes, Lemke observed a subtle shift from the previous year. While the "cautious optimism" is palpable, the capital side remains a significant hurdle for many.

"The feeling is a bit better than last year, but raising capital remains a challenge. It takes much longer to raise a fund today than it did before the interest rate shift."

Branislav Pekic