Rarely have so many properties been traded on the professional German real estate markets as during last year. This is also indicated by reports from the major real estate service providers, according to which 2018 was poised to achieve the highest transaction volume since records began. In many locations buyers are still paying record prices. Numerous German family offices are taking advantage of these high price levels to streamline their real estate portfolios – frequently after having held the properties for years and even decades.
No investor likes bidding procedures. They are expensive and frustrating. Nevertheless, more and more properties are being sold in this manner. Even those which are later described as an off-market deal. A number of “exclusive” negotiations are actually not at all exclusive.
Nowadays, more and more professional transactions are taking place in the form of off-market deals. According to a recent study both buyers and sellers are turning their backs on bidding procedures and addressing large swathes of the market because such procedures take up too much time – and far too often fall through.
The flexibility and exclusivity of off-market deals is becoming increasingly more popular for sellers as it offers clear advantages compared to structured bidding processes, says John Amram, founder of Berlin-based investment services boutique HPBA.
HPBA, Germany’s leading off-market specialist, has brokered an 8.3 million euros property transaction in the nursing home sector. AviaRent Capital Management S.à.r.l. has acquired the property for its CareVision III fund.
HPBA Off-Market Solutions has enjoyed a successful H1 2017. During the first half of the year, the company managed transactions worth a total of 800 million euros across the whole of Germany, of which 600 million euros involved residential real estate.