- Strategic cooperation for acquisition and financing of residential real estate
- Responsible investment for more living space in major cities
In the framework of a capital increase the insurance group Versicherungskammer has taken up a stake comprising 9.76 per cent of the shares in the property and investment company Domicil Real Estate AG. A cooperation agreement was concluded in the framework of the shareholding; this foresees collaboration in the acquisition of residential real estate for the insurer. At the same time Domicil is given the opportunity to finance new acquisitions through the insurer.
“The participation by Germany’s largest public insurer in our company shows that we have established an excellent reputation within the industry and among investors. Residential real estate is becoming increasingly important as a safe investment for institutional investors, and not least of all as a result of the coronavirus crisis. Thus, specialist real estate companies are increasingly of interest for investors. Thanks to our many years of expertise in the marketing of existing properties as a capital investment we have been able to generate a regular cash flow in addition to rental income,” explains Khaled Kaissar, the CEO of Domicil, adding: “With the capital increase by Versicherungskammer Group we are reinforcing the sustainability of our strong growth path in recent years and can continue to pursue further growth.”
“Affordable living space in Germany’s major cities has become a perennial issue unfortunately. As a regional insurer, Versicherungskammer Group bears responsibility towards society for ensuring more living space and quality of life with its investments,” explains Isabella Pfaller, the Chief Financial Officer of Versicherungskammer Group. In order to underline this responsibility, by signing the Principles for Responsible Investments (PRI) at the end of 2019 the insurer undertook to act in line with ESG criteria (environment, social, governance) when reaching investment decisions.
“At the same time, as a long-term investor it is important for us to attain sustainable returns. We are looking forward to the cooperation, and above all in the financing and acquisition of residential real estate for our capital investment,” adds Pfaller.
Versicherungskammer Group is one of the largest property owners in Munich and rents out its apartments on the public market. Furthermore, the insurer owns commercial real estate in Bavaria and throughout Germany. Further information is to be found here.