Vienna-based real estate company S Immo is expanding its German property sales programme, initiated in late 2022.
Originally focused on residential properties only, it now encompasses all its German holdings, including commercial assets outside Berlin.
The company is exploring various options, including individual property disposals, selling entire portfolios, or even exiting the German market altogether.
The announcement by S Immo’s Management Board and Supervisory Board follows closely on the heels of a recent portfolio strategy adjustment.
The focus is on a gradual streamlining process, primarily targeting small and medium-sized office properties with limited development potential.
Depending on market conditions and the ability to achieve favourable prices, this strategic shift could involve significant asset disposals in Croatia, Slovakia, and Austria. This might even lead to a complete exit from the Croatian and Slovakian markets.
However, S Immo remains committed to maintaining a relevant portfolio in Austria.
Proceeds from these potential sales will be reinvested in profitable office and commercial properties within the CEE region, aligning with the company's existing strategy.
As of 30 September 2023, S Immo’s portfolio was composed of 237 properties, with a book value of €2.98 bn and a gross lettable area of 1.3 million m3. Most are located in EU capital cities, with 21.8% of the portfolio value in Austria, 20.0% in Germany, and 58.2% in CEE.
The portfolio consisted 69.8% of office buildings, 13.1% of retail properties, 9.7% of residential properties, and 7.4% of hotels. The occupancy rate stood at 90.8%, with an overall yield of 6.7%.
