RQI Immobilien AG (RQI), a Germany-focused real estate investor active in the residential and office asset classes, has acquired a seed investment for its €100 mln 'redevelop-to-core' strategy.
The assets comprise two residential buildings in the Westend district of Wiesbaden acquired for €6 mln. The vendor is the subsidiary of a German insurance company.
The adjoining four-storey properties with 22 residential units were built in 1961 and last modernised in 1989. A vacant commercial unit of around 300 square metres is located on the ground floor.
Hendrik Möller, COO of RQI, said: 'Typical of its age, the properties require refurbishment, particularly in the structure of the buildings and their heating and energy systems.
'As a company with value creation at the core of our business philosophy, we recognise the potential to develop existing properties into energy-efficient housing and to create additional living space by adding storeys and conversion of use.'
By the end of 2025, RQI plans to invest around €100 mln in its 'redevelop-to-core' division. The focus is on established residential locations in towns and cities with populations over 50,000, showing positive demographic and economic trends, primarily in Hesse, Rhineland-Palatinate, and Baden-Württemberg.
Lot sizes will range from €3 to €12 mln. In addition to the development of unused space and the construction of new space through additions, conversions and densification, part of the strategy is to refurbish and modernise the acquired properties and let them out in full at standard market prices.
From an energy perspective, the aim is to achieve energy efficiency classes A to B, as RQI believes that only 'green' properties can belong to the 'core' risk class, which is the aim of the building upgrade.
