Swiss real estate investment manager Strotbek & Co has announced a new club deal to invest in distressed real estate opportunities in Germany.
The company has raised CHF 50 mln (€51.9 mln) from Swiss family offices in a first closing, with an additional CHF 50 mln already committed.
This new investment fund aims to help struggling real estate projects in Germany by acquiring them from developers. Strotbek & Co. will achieve this by buying shares in project companies or purchasing claims from lenders. By providing liquidity, they aim to alleviate the financial burden of developers and allow them to focus on completing their projects. A significant portion of the work also involves restructuring mandates, with a focus on preventing potential problems.
Founder and CEO of Strotbek Capital Partners, Markus Burkhard, commented: ‘The German real estate market is currently characterized by strong value corrections. Promising opportunities exist in investing in real estate companies, project developments or real estate in Germany that are undervalued, have problems with (re)financing, but still offer long-term growth potential or are located in an attractive market. Many project developers have approved and partly already developed plots of land. However, they lack the financing to complete the construction projects.’
Prof. Dr. Michael Trübestein, chairman of the Board of Directors of Strotbek Capital Partners, said: ‘We also buy land and then give project developers the option to develop it. The developer then only has to finance the construction costs. Family offices love such investment structures.’
The new club deal comes only days after former bank executive and restructuring expert Arnd Stricker took over as CEO and head of Restructuring/Turnaround Management at Strotbek Capital Partners.
With his appointment, the Swiss investment and consulting company wants to boost and further expand its turnaround business in the German real estate crisis market.
