Thursday, 17 September 2026
mpira Group has completed the final close of its first Transition-to-Green investment strategy with more than €700 million in equity commitments, providing the manager with capital to acquire and modernise existing residential properties across Germany.
The strategy, known as T2G I, focuses on apartment properties where refurbishment and energy upgrades can improve the quality and efficiency of the existing housing stock. Rather than financing new residential construction, the programme targets standing properties where additional capital expenditure can improve building performance and support their repositioning.
Empira has assembled a portfolio and secured acquisition pipeline covering more than 7,200 apartments through 18 transactions, representing over €1.5 billion in gross asset value. Investments are concentrated in Berlin, Hamburg, Cologne, Düsseldorf, Frankfurt and Munich, with the strategy expected to be substantially invested by the end of 2026.
Modernisation work includes improvements to façades and roofs, replacement of windows, additional insulation, heating-system upgrades and refurbishment of individual apartments. Empira is targeting an improvement in average energy performance from EPC rating E to B and an approximately 40% reduction in energy consumption across the portfolio. These remain investment targets rather than results already achieved.
Lahcen Knapp, Founder and Chairman of the Board of Directors of Empira Group, said: “The successful final close of our first Transition-to-Green strategy represents an important milestone for Empira. We launched this strategy with a clear conviction: a substantial part of the opportunity in European residential real estate lies not only in creating new housing, but in improving the quality and energy efficiency of the housing that already exists.”
He added: “With over €700 million of equity raised and a substantial portfolio already acquired or secured, we have demonstrated our ability to source and execute this strategy at scale.”
The strategy reflects the growing amount of capital required to improve the energy performance of Europe’s existing residential buildings. For investors, this is creating opportunities to acquire standing assets where refurbishment can improve both the physical condition of properties and their long-term operating performance.
Empira operates an integrated platform covering investment, financing, construction, technical management and asset management, allowing the company to manage both acquisitions and subsequent improvement programmes.
T2G I is currently being underwritten at a projected gross internal rate of return above 20.5% and a projected equity multiple of 1.85 times. These are forward-looking assumptions used by Empira for the strategy and do not represent realised returns or guarantees of future performance.
Jorge Veiga Juiz, Global Head of Client Solutions at Empira Group, said: “From the outset, investors have recognised both the scale of the opportunity within Germany’s existing residential stock and the potential to combine attractive risk-adjusted returns with a tangible improvement in the quality and energy efficiency of the underlying assets.”
The final close attracted institutional investors from Europe and other international markets, although Empira did not disclose individual investors or the size of their commitments.
Empira is already preparing a second Transition-to-Green strategy. T2G II is expected to follow the same investment approach while targeting a larger German residential portfolio comprising more than 10,000 apartments and over €2.5 billion in gross asset value. These figures are targets for the planned strategy rather than assets already acquired or capital already committed.
The scale of T2G I illustrates how the modernisation requirements of Germany’s existing residential buildings are developing into a significant institutional investment market. Rather than depending solely on new construction, capital is increasingly being directed towards upgrading standing housing, where energy performance, refurbishment requirements and asset management can form part of the investment case.
