Empira expands into US real estate market

The Empira Group, an investment manager for institutional real estate investments in the DACH region, is expanding its business activities to include the US real estate market. 

In the next twelve months Empira Group intends to invest approximately EUR800 million in the US market. The main focus of the investments will be on multi-family properties in flourishing metropolitan regions in the Midwest of the USA. In this respect there will be a particular focus on the federal states of Indiana and Ohio given their above-average population growth rates and a growing demand for living space. An initial portfolio of 650 apartments has already been acquired, and a further 680 housing units have also been secured.

Major potential for increase in rents and value appreciation with multi-family properties

“With the expansion of our activities to include multi-family properties in the USA we intend to provide our investors with investment opportunities in an attractive growth market,” says Lahcen Knapp, the chairman of Empira AG. Multi-family properties are achieving high growth and generating average rents, and during the coronavirus crisis have proved more stable than every other asset class. The properties already acquired by Empira Group are to be retained in its portfolio. “Thanks to active management of the portfolios and given the continuous rise in demand, there is considerable potential for an increase in rents and values,” adds Knapp.

The trend in favour of rented apartments has been evident in the US for several years – with the multi-family sector being a key beneficiary of this development. This sector typically comprises rented multi-family houses and complexes which are often high-end and equipped with facilities such as a pool, gym and barbecue area. In addition, as more people work remotely multi-family properties, with space for a home office, in the suburbs and smaller cities in the metropolitan regions are likely to become increasingly attractive.