Strabag takes over property management from Corpus Sireo

Strabag Property and Facility Services, the German property management arm of listed Austrian construction group Strabag SE, has taken over the property management business from Corpus Sireo, the German property arm of insurer Swiss Life, it announced this month.

While the financial details have not been disclosed, closing is expected to be on 1 April 2019.

‘We have a long relationship with Corpus Sireo because we have shared Deutsche Telekom with them,’ Strabag’s Marko Bohm, managing director for property management, told REFIRE. ‘We started discussing this arrangement back in September when Corpus Sireo told us they were thinking of outsourcing their property management.’

Under the terms of the deal, a number of five year property management contracts were concluded between the Swiss Life Group and Strabag. There are currently more than 340 Swiss Life properties in various asset classes held in Germany with a total value of more than €3.5b, according to Bohm. The focus is on the residential and office sectors.

‘In the partner model developed together with Strabag, we see great potential for our customers in terms of above-average property performance,’ said Martin Eberhardt, managing director responsible for Corpus Sireo Real Estate.

Strabag manages €24b of AUM across 20 million sqm, of which 95% is in Germany, according to Bohm. ‘We’re also interested in the CEE region but it can be hard to get into,’ he said. ‘Ideally, we’d like to grow our assets under management by 5% to 10% this year.’

Corpus Sireo has more than 50 employees in Berlin, Leipzig, Dresden, Heusenstamm/Frankfurt, Düsseldorf and Nuremberg, who will be integrated into Strabag’s property management arm. In addition, extensive recruitment is planned.

‘With this transaction, Strabag is further expanding its real estate management,’ said Thomas Birtel, CEO of STRABAG SE. ‘Many of these mandates are still in the development phase despite the already large volume and have the potential for a significant increase in volume. Thus, we are expecting strong growth in our property management business over the next few years.’

Strabag’s target clients invest in properties in B and C cities, as well as the Top 7, according to Bohm. ‘I strongly believe that how you manage properties will drive success going forward, particularly if the market slows down. That is how we will make a difference.’ (ssk)