The JUNiCKE Group, a real estate investor active in northern and eastern Germany with a focus on logistics, light industrial real estate and business settlement, is expanding its field of activity and will increasingly enter the residential real estate market in the future. Residential is not new territory for the JUNiCKE Group. The segment has been part of the company’s business activities for many decades. Against the backdrop of current market opportunities, this area is now to be expanded in a targeted manner. The decisive factors are in particular the current lower level of competition and selective acquisition opportunities in a market environment characterized by the reluctance of many investors. At the same time, the residential asset class offers a high level of stability and predictable cash flows.
The aim is to establish residential real estate as a third independent business area alongside logistics and light industrial. The focus is on sustainable growth in the Hanover and Braunschweig regions, where the company already has market knowledge and networks. The focus is on a long-term holding perspective, combined with the active further development of the portfolio. “With our active entry into the housing market, we are expanding our portfolio in a targeted manner to include a segment that will be driven by structural demand in the long term. For us, the focus is not on short-term effects, but on the question of where residential real estate can be developed sustainably on the basis of its location and substance. This is exactly where we come in and are consistently building up this business area,” explains Julius Junicke, Managing Partner of the JUNiCKE Group.
In particular, apartment buildings and residential portfolios are sought. The focus is on established micro-locations with demonstrable demand in the Hanover and Braunschweig regions. The commercial share of a property should be a maximum of 15 percent. In addition to the net asset value of the property, the rent level in relation to the market, the technical condition and concrete prospects for further development in the portfolio are decisive for a purchase. These include expansion reserves, densification potential or the conversion of individual areas. Value creation is primarily achieved through operational measures such as market-driven rent adjustments and the optimisation of existing structures.
Jobst Junicke, also Managing Partner, adds: “In the residential sector, our focus is clearly on portfolios with concrete development potential. We examine very carefully where additional value can be achieved through letting, construction measures or densification and where not. The decisive factor for us is the operational feasibility in the property.”
Specific acquisitions in the residential segment are currently being examined. The first transactions are planned for 2027 and are to be communicated at a later date.
