with an eye on the future
Promising development returns + stable cash flows from rental income = success. For the listed company, EYEMAXX Real Estate AG, which specialises in project development and portfolio management, this equation has been the key to success since 1996. Over the years, the company’s project pipeline has risen to almost one billion euros. The most recent focus is on high-growth sectors such as hotels, serviced apartments and office real estate – taking Berlin, Hamburg and Offenbach as examples.
“eyemaxx Real Estate Group has set itself the twin goals of growing profitably and sustainably increasing the enterprise value through high-yield real estate developments and the retention of real estate in its own portfolio”, says CEO and founder Michael Müller. Its successful track record shows that sustainable and profitable growth are not just empty words. Ever since its foundation in 1996, the company’s operations have generated profits, and earnings after tax have increased steadily in recent years. By going public a few years ago, the company set the right course for the future.
One billion in the pipeline
“In addition to a strong team of real estate professionals and an established network, one of our secrets to success is the strategy of a broad-based project development portfolio”, says Müller, highlighting the company’s particular strengths. Diversity is the trump card, and our business model is built on two pillars. The first pillar comprises the development of real estate projects with a key focus on residential real estate, including micro-apartments in Germany and Austria, together with urban district developments, hotels and serviced apartments in Germany. eyemaxx also develops retail and logistics properties in promising markets in the CEE/SEE region. Our development portfolio is therefore diversified according to sectors as well as regions. eyemaxx’s project development expertise covers everything from conceptual design, project planning, coordination with authorities to construction and the sale of real estate. We don’t always develop our real estate for sale, we also develop real estate for our portfolio.
The second pillar of our business consists of holding rental properties in Germany and Austria. The company thus combines steady cash flows through rental income from existing properties with attractive developer returns from the expansion and successive implementation of the project pipeline. The fact that the pipeline has constantly grown is confirmed by some impressive figures: As recently as 2011, the project volume stood at EUR 200 million; eight years later the one-billion-euro mark is already being targeted with projects under development. “The goal for the following fiscal years is to keep the continuous implementation of these projects and the pipeline level constant by acquiring new projects”, explains Müller.
Berlin and Hamburg – with an eye on the market
“We have scouts and professionals who are constantly monitoring current trends, and we strive to meet the demands that the market places on us”, says Michael Müller, alluding to the fact that the focus is increasingly on high-growth sectors such as hotels and serviced apartments without losing sight of promising commercial real estate projects. The trend in housing is towards micro-apartments of between 30 and 50 square metres, which are increasingly in demand as the number of single households increases and families have fewer and fewer children. The investment volume in hotels has also risen in recent quarters and demand is growing. In the summer of 2018, ground was broken on the Hotel Berlin Schützenstraße in the Berlin district of Treptow. “The immediate proximity to the new international airport, Willy Brandt (BER), favours the settlement of companies and organisations and makes Treptow-Köpenick a business location with excellent prospects for the future”, Müller explains. Treptow-Köpenick is also becoming an outstanding university location and is already home to the Humboldt University, the HTW and the Ernst Busch Academy of Dramatic Arts. The hotel, which comprises around 140 rooms, 40 serviced apartments and office space, is being built on a 3,850-square-metre site with a net floor area of 5,600 square metres. The property is also being equipped with 60 underground parking spaces. Construction is scheduled to start in mid-2019.
In Germany, eyemaxx is also focussing on an equally attractive project, Hotel Hamburg Harburg. Harburg, a district in the south of the Hanseatic city, is well-known for the renowned Technical University TUHH, a rich cultural life, entire streets lined with Wilhelminian-style architecture and by far the largest connected urban development area of Hamburg after Hafen City. Channel Harburg has evolved as a hub for technology and science as well as a home for smaller service providers. People are drawn to the inland port quarter not only for working and researching, but also for eating. Visitors have a constant view of the water; the harbour basin and many canals lend this inland port quarter a maritime flair. A serviced apartment complex with 30 rooms and a hotel with 125 rooms and 60 underground parking spaces are planned. A positive preliminary building decision from 2017 for the construction of a hotel has been received. Construction is due to begin in 2020, and last around 20 months.
Landmark in Offenbach
The Main Gate East on the harbour island Offenbach comprises office, retail and gastronomy space. eyemaxx is planning a new office tower that will rise up to 70 metres above the harbour. With approximately 20 storeys and a gross floor area of almost 13,600 square metres, this will add another high-rise building to the newly developed city district in the heart of the Rhine-Main region. The planning also provides for parking spaces in the neighbouring multi-storey car park on the approximately 2,800-square-metre site, which will also boast an attractive mix of commercial and dining options. The project volume amounts to approximately EUR 65 million. eyemaxx has already acquired the site where Main Gate East will be built. Construction is scheduled to begin in mid-2020 and completion is slated for the end of 2022. Upon completion, eyemaxx plans to sell the property to an investor.
EYEMAXX Real Estate AG on the Vienna Stock Exchange
On 21 January 2019, EYEMAXX Real Estate AG launched a second listing of its shares on the Vienna Stock Exchange in the new “direct market plus” segment. This new listing means that eyemaxx is even more broadly positioned on the capital market and increases its visibility with Austrian investors. EYEMAXX Real Estate AG shares have been listed on the Regulated Market in Frankfurt, Germany, since 2011. In addition, the company’s corporate bonds are also listed in Germany. Michael Müller, CEO of eyemaxx Real Estate Group: “The fact that our shares can now also be traded on the Vienna Stock Exchange makes us more interesting for a broader circle of investors. This will also increase our visibility on the Austrian property market, which should have a positive effect on our continued profitable growth”.