Real Life

Picture from the construction site of the New Ohnsorg Theater.

Hold your fire

We had the question on alstria’s quaterly call this week. Listening to other German real estate companies call, and reading a number of analyst note, it seems that there is a growing number of (non German) market participant who expect “distressed sales” coming from the German open ended funds (mainly of the ones which said they will liquidate).

Is German open ended funds liquidation a great buying opportunity for real estate investor? The answer, is probably no. Or at least not yet.The fund managers have three years to sell their assets. Therefore, they expect that the liquidation is going to be done in an orderly manner, with little “distress” attached to it, and they might as well be right.