Launch of Innovative “Empira Transition-to-Green Fund”

This investment product signifies a turning point in the German residential market by focusing on the sustainable revitalisation and energy upgrading of mid-market residential properties. Against the backdrop of the EU's "Fit for 55" initiative, the fund intends to make us of possible statel subsidy programmes and utilise these as part of its investment policy in order to reduce the investment costs in equity and at the same time significantly increase the value of the properties.

The Empira Group's transition-to-green strategy specifically addresses under-managed properties in the top 8 cities and metropolitan regions in Germany. Measures such as window replacement, roof insulation, and modernisaton of heating systems upgrade theenergy efficiency of these properties, while active rental management increases their value and reduces vacancy rates.

In view of the steadily increasing demand for affordable housing and the growing decarbonisation requirements for German residential real estate, Empira is responding with a holistic solution. The fund aims to sustainably transform existing housing stock in Germany’s top 8 cities and metropolitan regions while optimising rental structures to promote positive cash flow. "Without decarbonising the existing housing stock, the ambitious German and European climate targets for the building sector will not be achievable," explains Knapp.

At the heart of this is Empira Group’s vertically integrated platform, which enables it to quickly and cost-effectively position buildings as more valuable assets.

"Our investment strategy efficiently integrates costs into rental structures and thus directly promotes positive cash flow. We focus on comprehensive portfolio optimisation to reduce energy consumption, extend the economic life of properties, and implement sustainable measures that increase long-term value," adds Knapp.

"We are at a critical turning point. With the transition-to-green strategy, we offer investors a unique opportunity to enter the residential property market just when prices are bottoming out  and awareness of sustainable buildings is growing," concludes Knapp.