Real I.S.’s Christine Bernhofer: Active management and living strategies anchor investor demand

Real I.S. CEO and Chairwoman Christine Bernhofer says the firm is maintaining stable AUM in a market where investors are increasingly looking to restructure their real estate exposure. 

Christine Bernhofer, CEO and Chairwoman, Real I.S.  

She notes that Real I.S. has recently signed an in‑kind contribution fund in the lower hundreds of millions, driven by corporates seeking to move real estate off their balance sheets. Capex and ESG obligations have become overwhelming for some owners, and shifting assets into fund vehicles offers operational relief. “Some clients simply want to get rid of the management activity,” she says.

Club deals remain a viable route, particularly for specialist sectors such as hotels. Bernhofer describes investor appetite as selective but present, with Real I.S. actively searching for portfolios that could anchor new club‑deal structures. Living strategies continue to dominate conversations. “Living is a need,” she says, noting that every European country is short on apartments, both conventional residential and PBSA, and Real I.S. is actively sourcing assets aligned with that demand.

Bernhofer characterises the mood at Expo Real as realistic. Interest‑rate uncertainty continues to shape discussions, but she sees a clear focus on what can be influenced: asset management. “Everybody is trying to do asset‑management activities,” she says, adding that GDP growth remains the missing macro driver. Real I.S. has intensified early asset‑management work, particularly in offices where tenants have become more scarce. The firm now engages tenants earlier and more directly, maintaining a 94% occupancy rate across a portfolio that is 56% office.

Investor interest from pension funds and insurers is returning, but only for specialised products with convincing risk‑return profiles. Living strategies lead current mandates, alongside centrally located offices in major European cities. Outskirts and B‑locations, Bernhofer notes, are not attracting capital.

Looking ahead to year‑end and into 2027, Real I.S. plans to expand residential fund concepts while selectively pursuing hotels and high‑quality office assets that match investor demand.