Introduction
The German real estate market attracted numerous international investors in the past cycle. Benefiting from the ongoing zero interest rate policy, more and more capital flowed into the market, and large-volume individual properties and portfolios in particular were often purchased by non-German investors. In this dynamic phase, it was crucial to secure attractive properties quickly – often in cooperation with local partners. The focus was on the purchase, and in many cases there was little time to thoroughly check the quality and reliability of the operating partner on site.
Current challenges
Since the interest rate turnaround in 2022, market conditions have changed fundamentally: the number of transactions is declining, valuations are falling – and operational asset management is taking center stage more than ever. Valuation gains are becoming less important as performance drivers. In this environment, the quality of ongoing management is decisive for the success of a property. International investors are increasingly confronted with the challenge of developing their investments in Germany efficiently, transparently and strategically – often with partners who were originally selected for a different market phase.
In such phases, reliable partners are even more important
for investorsMontano Real Estate understands the requirements and expectations of both national and international investors – not least because international players have been the focus of the company since its founding in 2013. The first mandates came from international banks, which had to look after non-performing loans secured by German real estate as a result of the global financial crisis. Montano quickly developed the operational depth and market knowledge to stabilize properties, leverage value appreciation potential and sell them in the best possible way. Over more than a decade, this expertise has been continuously expanded, and today Montano can point to a reliable track record for a wide variety of investors.
Success through active management – the example of Uptown Munich
An impressive example of Montano’s competence is the management of Uptown Munich, which was taken over in 2017. The owner had previously failed with the sales process and was looking for a local specialist to prepare the property for sale in the best possible way. An extensive CapEx program was implemented and the lease was extended on a long-term basis in close coordination with the user. Thus, the property was optimally positioned for an exit. The sale in 2021 was one of the largest real estate transactions of the year – both in Germany and in Europe.
Reliable asset management partner in a new market phase
Since the interest rate turnaround, Montano has acquired properties from several international and national investors – most recently a high-quality office property in Munich and a portfolio in Berlin. The first months of a new mandate are always characterized by intensive exchange, regular coordination and the joint definition of strategic goals. Montano sees itself not only as an administrator, but also as an active value driver and sparring partner – with the aim of developing each property operationally and strategically in the best possible way.
Conclusion: Strategic asset management as the key to value creation
In a market environment characterized by rising interest rates and falling valuations, professional asset management is gaining massively in importance. It is the decisive lever for stabilising and developing real estate investments and positioning them successfully in the long term. Montano uses a wide range of measures – from operating cost optimisation and ESG-compliant investments to active tenant management and targeted space activation and repositioning. For national and international investors, this means more transparency, better controllability and a measurable increase in value – with Montano as a reliable partner at their side.
