Nico Mercker-Sague recently joined property investment company Avignon Capital as senior asset manager in its new Berlin office. He previously worked in CBRE's advisory and transactin team. Here he talks to PropertyEU about the priorities in his new role.
PropertyEU: What made you decide to ‘cross the fence’ from the advisory (CBRE) to the investment (Avignon) side of real estate?
Mercker-Sague: From my time at CBRE, I already knew Avignon Capital and had a good relationship with the firm – I knew Avignon’s buildings, tenants and vision, and this was something I wanted to be a part of. Moreover, Germany was a market I had been working in for a while, so the role was a good fit. My personal goal was to seek a more active role in terms of direct European investment and Avignon presented an opportunity to do so.
PropertyEU: Will you have to relocate for the new position?
Mercker-Sague: No – I am already on the ground in Berlin and familiar with the area and market.
PropertyEU: What are the immediate priorities in your new role?
Mercker-Sague: The initial focus will be to continue work on Avignon’s projects in Berlin, including the Ampere property and Berliner Union Film. There are many tasks on the asset management and development side, including getting a timeline ready for construction and eventual completion. Another priority for me has been building a relationship with the existing tenants, as this interaction is a key value for Avignon and will help keep the vibrant atmosphere at our properties.
PropertyEU: Will your focus be on Berlin only or other cities/parts of Germany as well?
Mercker-Sague: Our current German assets are located in Berlin and Frankfurt, so our focus will remain there. However, we have been speaking to brokers that cover all main markets in Germany, as we intend to continue growing in the wider German market.
PropertyEU: Which sectors is Avignon targeting for its German expansion?
Mercker-Sague: At present, we see most value and potential in the office and hotel sectors. In Berlin, specifically, we also continue to seek tech-driven offices with identity, similar to the Umspannwerk and Ampere properties.
PropertyEU: What is the value of Avignon’s current holdings in Germany? What is the target?
Mercker-Sague: Avignon currently has €150 mln invested In Germany and is looking to continue growing its portfolio in a sustainable manner.
PropertyEU: Competition among (foreign) investors for assets in Germany is fierce at the moment due to the country’s safe haven status. How will Avignon deal with this?
Mercker-Sague: Avignon has the edge on the competition with its track record, as people have an awareness of who we are and what assets we have bought. We always look for special assets, this is a key differentiator.
Moreover, not all foreign investors have someone on the ground in Germany, so they have to rely on third-party information, which can slow down the decision-making process a little. Subsequently, we can act much more quickly now that we have an on-the-ground presence.
