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PropTech Asset Management > Residential Real Estate

Residential Real Estate

Smart Homes

 

 

We are a real estate investment platform and are using new technology of the PropTech industry. Our fund has a value add and opportunistic strategy and will buy residential properties to optimise and hold assets. The assets will be located in “B-Locations” in Germany and the United Kingdom. Our residential fund will have GBP 250 million assets under management by 2023 and will be closed afterwards.

 

 

 

strategy

Our main strategy on finding undervalued residential properties are:
  • Global Real Estate Network
  • Local Real Estate Partners
  • Utilisation of Technology
  • Utilisation of Search Algorithm

Residential Investment Strategy

Before end of 2023 we will buy residential real estate worth GBP 250 million in “B-Locations”. These locations, which are mainly in the outskirts of a major city will show a population growth and an exceptional public transport connection to the city centre.

Return on Investment

The investment in residential block of flats in Germany and the United Kingdom ensures a secure return of 2% to 4% for the banks and up to 10% for equity capital providers. Furthermore, the firm will repay the entire loan and equity capital. The target reduction for capital expenditure (CAPEX) and operational expenditure (OPEX) is 30%. The aim for occupancy rate is minimum 90%.

Acquisitions

We have achieved this by focusing on the acquisition of multi-family residential buildings in Germany and the UK for the first five years. The properties are located in the suburban areas of the largest cities.

Those properties are generally priced lower than properties in the city centre. Hence, the returns will be higher due to a higher cash flow.

Additionally, there is a strong tendency to stay long-term in outskirt areas in Germany and the UK. Well selected tenants, which are staying long term often maintain their properties better, which results in lower OPEX.

On the other hand, the disadvantage is that price appreciation is not as strong as it is for properties in the city centre. Furthermore, void rates can be higher as demand is lower. This will be omitted by using the latest PropTech methods to re-let properties effectively.

Investors

The real estate private equity firms are distributed globally, who want to diversify their investments. Hence, they invest through our firm in German and UK real estate.

Banks are located locally or nationwide in Germany and and the United Kingdom, who will consequently provide very competitive market rates.

A large network to these firms already exists and will be further nourished and expanded using technology.

This means due to the firm’s technological advancement of providing contracts and reports online and being able to conduct conferences in multiple languages, the company will be able to receive the best offers from real estate private equity firms.

Smart Homes

For the private and residential property market a number of large firms such as Amazon or Google have already positioned himself to make the home smart. The focus for Amazon can be the ideal delivery, which means the courier will have an option to leave the packets at the premise of the client even without the presence of the customer. This could be achieved by using smart locks. This large and growing market enable the resident to control access to a property without geographical barriers. This could simply mean that a courier is delivering a parcel or a good friend makes a visit, but the resident is not at home. By ringing the doorbell, the resident receives the information on the smart phone through an app, and sees the person and the camera and is able to open the door or gate for the visitor.

On the other hand, Google might be interested in collecting resident behaviour data and wants to use it. Once they have this information they can analyse it and optimise advertisement.

Optimising energy consumption is also key for our smart homes. By installing smart metres, now it is possible for us to analyse the usage of energy of individual appliances and to predict which of those appliances might break in the near future. This information can then be forwarded to energy or insurance companies to evaluate the premium according to the usage behaviour of the resident.

Our Services

INVESTMENT PROFILE Download the pdf file for our current investment criteria.

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+44 (0) 20 3287 5157
contact@ PropTechAM.com

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