Michael Sander - CC BY-SA 3.0
Mainstation Erfurt
Mainstation Erfurt
The city of Erfurt, the capital of Thuringia, has been experiencing somewhat of a boost to its profile over the past couple of years. Your editor finds himself at least passing through the city on a much more frequent basis these days, largely as a result of the ICE trains from Berlin to Munich (and indeed, many to Frankfurt) being routed through Erfurt.
In the case of travelling to Munich, it cuts a sizeable two hours off the old journey, via Frankfurt and Stuttgart, and has made the choice of travelling to Munich by air or train now very much more in favour of the overland route. It also bodes well for the city’s real estate, which has been flourishing recently.
One company that is currently very focused on the city is S Immo, the listed Austrian real estate investor, which has been investing in value-add opportunities in the city since the beginning of 2018, mainly residential. It is now buying commercial properties in the city, and has bought two historic office buildings this year, bringing its portfolio up to over 36,000 sqm of lettable space, while planning further investments.
The two office assets are the former Reichsbahndirektion building located directly on the forecourt of the rail station and the no less historic royal Prussian gun factory on Maximilian-Welsch-Strasse.
According to Robert Neumüller, managing director of S Immo Germany, Erfurt represents a logical continuation of the strategy to invest beyond Berlin. “Erfurt has been on our list for quite some time now. It wasn’t easy to access the market at first, and our sounding process took a while. So we are all the more excited that we now have over 33 properties in our portfolio. This is a great size that allows for efficient management”, he said.
S Immo started by buying residential properties in the desirable Gründerzeit neighbourhoods surrounding the medieval old town. Erfurt’s population has been growing steadily again for several years, and the city has a low vacancy rate, suggesting that rental income should see sustainable growth.
