DERECO, the independent multi-family office for real estate assets based in Cologne, has received a new buying mandate from another Dutch entrepreneur family. In total, DERECO intends to invest a minimum of EUR 80m to 100m across Germany.

For this portfolio, DERECO is going to focus on retail and office properties in premium locations and pedestrian zones, respectively, with an investment volume upwards of EUR 10m, and on new residential real estate with some retail space in good and preferred sustainable locations in cities and towns with a population of at least 50,000. At present, eligible sites are being investigated. DERECO is going to invest in retail properties with a number of separate units each and in properties with mixed usage (retail, offices and/or housing) alike. In some cases, even retail centres may be suited for the portfolio.

Existing property stock which is as good as new or, alternatively, new construction projects are preferred options, provided they can be acquired through a forward deal. In individual cases, purchasing prices may be as high as a twentyfold multiple depending on the type of usage and location.

“New retail constructions right on the marketplace of sustainable cities and towns with a medium-sized catchment area and a high centrality rating or new residential properties with a full-range retailer under the same roof in good urban housing locations would be ideal. We’d conclude buying contracts from a pre-letting level as low as 40%, provided an outline building application has been granted approval,” says Marc Ludwig, Senior Investment Manager at DERECO. The company has most recently acquired similar retail properties for other single-family offices in places like Siegburg, Detmold and Stade.

Upon acquisition, DERECO will also be responsible for asset management as far as the
new portfolio mandate is concerned.