RQI Immobilien AG buys seed investment for EUR 100 million

RQI Immobilien AG buys seed investment for EUR 100 million vehicle with “redevelop-to-core strategy” in the residential segment.

- Investment volume EUR 100 million: focus on southwest Germany
- First properties in the residential sector acquired
- Acquisition of a further ten to twelve properties by the end of 2025
- Leveraging value creation potential using a “redevelop-to-core” strategy

RQI Immobilien AG (RQI), a Wiesbaden-based real estate investor active throughout Germany in residential and office asset classes, focuses on portfolio optimisation and development with a high degree of vertical integration. RQI has acquired its first property complex for its "redevelop-to-core" strategy with a total investment cost of EUR 6 million. These are two residential buildings in the Westend district of Wiesbaden. The vendor is the subsidiary of a German insurance company.

The adjoining four-storey properties with 22 residential units were built in 1961 and last modernised in 1989. A vacant commercial unit of around 300 square metres is located on the ground floor.

“Typical of its age, the properties require refurbishment, particularly in the structure of the buildings and their heating and energy systems. As a company with value creation at the core of our business philosophy, we recognise the potential to develop existing properties into energy-efficient housing and to create additional living space by adding storeys and conversion of use. The implementation is achieved with the help of our in-house expertise, as part of our "redevelop-to-core" strategy. This not only creates urgently required modern residential accommodation: through our integrated ESG approach it also contributes to reducing emissions from the property portfolio.” explains Hendrik Möller, COO of RQI.

By the end of 2025, RQI plans to invest around EUR 100 million in its "Redevelop-to-Core" division. The focus is on established residential locations in towns and cities with populations over 50,000, showing positive demographic and economic trends, primarily in Hesse, Rhineland-Palatinate, and Baden-Württemberg. Lot sizes will range from EUR 3 to 12 million. In addition to the development of unused space and the construction of new space through additions, conversions and densification, part of the strategy is to refurbish and modernise the acquired properties and let them out in full at standard market prices. From an energy perspective, the aim is to achieve energy efficiency classes A to B, as RQI believes that only "green" properties can belong to the "core" risk class, which is the aim of the building upgrade.