Empira launches German residential investment strategy with UBS commitment

Empira Group has launched its EMPIRA German Living strategy, with UBS committing more than EUR 158 million as an anchor investor for the new residential real estate fund.

According to Empira, the capital will be invested over the coming months to establish a diversified residential portfolio across Germany.

The strategy will focus on income-generating residential assets in Germany’s major cities, alongside selected secondary locations with demographic and economic growth potential. The investment approach is based on a Core+ strategy, combining acquisitions with active asset management and operational improvements.

Empira stated that the strategy will also target the refurbishment of existing residential properties to improve energy efficiency standards. Planned capital expenditure programmes are intended to support compliance with the European Union’s Fit-for-55 objectives, with a portfolio target of achieving EPC B ratings.

The company said it will use its integrated platform covering sourcing, development, construction management, asset management and property management.

Jorge Veiga Juiz, Global Head of Client Solutions at Empira Group, said Germany’s residential sector continues to offer long-term opportunities for institutional investors due to the size and structure of the rental market.

Ralf Morisse, Head of Residential Mandates at Empira Group, said the current market environment presents acquisition opportunities linked to pricing adjustments and refurbishment requirements arising from new energy efficiency regulations.

The initial seed portfolio includes residential assets located in Germany’s seven largest cities. The strategy has a target fund size of EUR 350 million.

Jean-Luc Seidenberg, Managing Director and Head of Europe at UBS Unified Global Alternatives Real Estate, said the investment aligns with UBS’s existing focus on the European residential sector, citing current pricing conditions, operational capabilities and ESG considerations as key factors behind the commitment.

Ilias Harcha, Executive Director at UBS, said the investment reflects confidence in Empira’s operating platform and its ability to implement a manage-to-core strategy within the German residential market.