Empira Group teams up with UBS to launch €350m German living strategy

Empira Group has initiated its Empira German Living strategy with UBS participating as the primary investor, committing over €158 mln.

Jorge Veiga Juiz

This capital will be used to establish a diverse initial portfolio of residential properties throughout Germany in the coming months.

The strategy adopts a Core+ approach, concentrating on acquiring and actively managing residential properties that generate income in Germany's major (A-tier) cities, as well as select B- and C-tier cities demonstrating robust demographic and economic health. With UBS's foundational investment, the goal is to construct a varied portfolio and systematically expand it through further capital injections. A key aspect of the strategy is a disciplined "manage-to-core" approach, which involves strategic portfolio aggregation and enhancing operational efficiencies.

A significant element of this strategy is the energy-efficient renovation of existing, less resilient assets. Through targeted capital expenditure programs designed to meet the goals of the EU Fit-for-55 package, the portfolio aims to achieve an EPC B rating. Empira will utilize its integrated platform, which encompasses expertise in sourcing, development, construction management, as well as asset and property management.

The initial portfolio includes properties situated in Germany's top seven cities and the target fund size for this initiative is €350 mln.

Jorge Veiga Juiz, global head of Client Solutions, Empira Group, said: “The launch of the German Living strategy marks an important milestone in our growth trajectory. As Europe’s largest rental market, Germany offers a structurally attractive environment for institutional investors. The partnership with UBS Unified Global Alternatives as anchor investor underscores the confidence in our platform and our investment capabilities.”

Ralf Morisse, head of Residential Mandates, Empira Group, stated: “The German residential market is currently characterised by attractive entry opportunities, driven by price adjustments and a structural refurbishment backlog resulting from new EU energy efficiency requirements. Our manage-to-core approach enables us to selectively acquire assets, enhance them through targeted measures, and create sustainable value – for both investors and tenants.”

Jean-Luc Seidenberg, managing director – head of Europe, UBS Unified Global Alternatives Real Estate, commented: “Our commitment to the Empira German Living strategy represents a natural continuation of our investment approach in the European residential sector. The combination of attractive entry pricing, an experienced and vertically integrated management team, and a clearly defined ESG profile makes this strategy particularly compelling for us.”

Ilias Harcha, executive director, UBS, added: “Our investment reflects a high level of conviction in Empira’s integrated platform and its ability to execute a disciplined manage-to-core strategy in the German residential market. The combination of strong local expertise, operational capabilities and a clearly defined investment framework provides a robust foundation for delivering long-term, risk-adjusted returns for our clients.”