Austrian Residential

Background:
The Austrian residential property market is gaining importance for institutional investors, especially those from Germany. Several German pension funds are eager to make use of the opportunities in this segment while benefiting from an experienced local asset management team.

Implementation:
Institutional investors are not only looking for attractive properties that would suit their investment strategy, but also for the right partners and structures to ensure long-term success. Indirect investment vehicles, such as specialized funds or limited partnerships / LP’s, are often the preferred choices when investing abroad. An asset manager with extensive local know-how, a strong management team and excellent access to suitable investment opportunities plays a key role in this context.

GalCap Europe is the operational manager with unrivaled expertise in Austrian real estate. On the administrative side, we cooperate with several licensed fund management companies (Kapitalverwaltungsgesellschaften). Thus, we can adapt to various institutional requirements fully. Specific investment profiles in different fund vehicles are already established, including defined transaction and asset management procedures, and the cooperation is in successful operation. Within a short timeframe, several acquisitions with a volume of more than 110 million euros were closed. The individual client’s needs have been a top priority in all the transactions. Our acquisition pipeline continues to be well-filled.

Whether as a separate account for an individual investor or as a club deal / fund for several institutional investors, GalCap Europe always assumes the asset management responsibilities for all acquired properties. We represent the principal owner through the entire investment cycle: starting with the development of the property strategy and the preparation of a detailed business plan through to the leasing management, value and cost optimization as well as the management of external service providers and, as final step, to a successful exit.

For GalCap – Austria Immobilien I, a specialized open-ended real estate fund under German investment law, a high allocation of at least 70 % for residential properties will be pursued. This contributes significantly to a stable fund performance.

Conclusion:
The constant influx of people into the urban agglomerations of Vienna and Graz, the very moderate rental level compared to metropolitan areas across Europe, as well as the secure legal framework make the Austrian residential market an attractive investment environment. As a highly specialized asset manager, GalCap Europe provides the local knowledge and the expertise that is indispensable to enduring success.