Company profile

ISARIA Wohnbau AG is today already one of the most well-established, large project development companies for residential building construction in Germany. Our aim is to strengthen this position in the market on a sustainable basis until 2020.

ISARIA Wohnbau plans to achieve a revenue volume of about €1.9 billion from its ongoing project developments in the next five years. The existing pipeline should be further expanded with targeted acquisitions in order to realise further profit potential.

Regional expansion

ISARIA Wohnbau’s expertise is set to be expanded in a targeted manner in the coming years, and applied to further target markets. With this in mind, we are currently assessing a market start in additional large German cities, primarily in the top 7 major cities.

ISARIA Wohnbau often generates a major part of its added value from its construction rights acquisition programme. In order to generate as strong a yield as possible on the funds invested in the projects, we continually assess which phase the best utilisation results can be achieved in from an optimised risk perspective.

The normal case is the turnkey-ready sale of single properties to private investors or owner-occupiers. It may also be wise to sell the projects before or after completion of the construction rights development. In individual cases, however, it can be beneficial to retain the property as a financial investment.

Clear focus on residential property with stringent investment criteria

ISARIA Wohnbau also intends to focus on the acquisition and implementation of residential construction projects in the future. Here, we are aiming for gross profit margins of at least 15% with project sizes of about 100 – 500 apartments per project and an investment volume of about €15 million per plot of land.

The total investment costs of these types of projects generally come in at €50 million.

ISARIA Wohnbau is focussed on apartments with attractive styling in the mid-range price segment. When it comes to location, good local facilities and transport links into the centre of town are the key criteria.

Further strengthening of the financing structure

Thanks to an increased creditworthiness rating over the past years, ISARIA Wohnbau can get vastly improved conditions for the financing of its projects. This means we can further reduce our average interest burden in the coming years and grow our profitability.

This also boosts our equity capital and creates new leeway for our planned operational growth. The ONE GROUP, an integrated part of the Group, which draws up project development funds and offers them to investors, represents a key financing platform. Here, ISARIA Wohnbau receives the required equity capital for the period of the project developments to invest in a profitable way.

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