Deep Dive Into Asset Management at DLE
Asset management explained
Asset management is a financial service that aims to increase the usability and value of certain assets.
In real estate, this means the active management and optimization of properties with the goal of either reselling or leasing out at an increased value after optimization
In addition to deep expertise in real estate processes, asset management requires a deep understanding of market economics and trends, political changes, and financial and environmental regulations to which these assets are exposed. In turn, an asset manager’s role is to take the necessary procedures to capitalize on opportunities and mitigate the risks resulting from this exposure and ensure maximum benefit from these assets. Asset managers work for pension funds, institutional investors, private investors, insurance companies, and other businesses, considering individual expectations of customers, asset managers focus on the optimization of investments.
Our work at DLE
Berlin-based DLE Group AG is one of the leading land developers in Europe, and pioneers of the land development asset class. Throughout Europe, we aim to contribute to society with our unique investment platform by offering sustainable investment solutions for our institutional investors. In doing so, we are continuously working on further developing DLE's offerings while taking into account industry trends.
Our investors have access to a broad portfolio of investment opportunities through our platform, including:
- Land Development (Germany and Poland)
- Development Financing
- Yielding Real Estate
By offering our investors a diversified portfolio, we are able to meet the individual interests of investors. At the same time, DLE always aims to generate profitable and sustainable growth that combines attractive returns with social added value.
DLE’s Land Development Business
DLE Land Development and DLE Poland enable property developers and housing companies to gain easier access to building land by purchasing large mixed-use plots of land, dividing them into smaller, single-use subplots, and developing them until they are ready for construction by project developers.
Additional value creation comes from obtaining building rights for the sub-plots before selling to developers.
DLE’s Development Financing Business
DLE Capital addresses the structural supply-demand gap in the financing market for high-quality project developments as well as revitalizations of existing properties as a bank-alternative to capital provision by providing mezzanine debt
Additionally, DLE Capital Provides ESG-focused financing solutions to experienced project developers, with a current focus on residential projects.
Additional value creation is secured by an equity-replacing capital strategy generating high returns from a higher equity ratio.
DLE’s Yielding Real Estate Businesses
DLE Living and DLE Logistics invest in real estate assets with rental yields.
DLE Living is a specialized investment manager for senior living investment products in Germany that focuses on the mega-trend of an aging society and offers competitive yields in a capital-preserving environment with potential for sustainable growth.
DLE logistics is a specialized investment manager for light industrial and value-add logistics properties in Germany and Europe that capitalizes on the growing e-commerce demand & Germany’s leadership in Europe’s manufacturing output.
Both strategies focus on acquiring, optimizing, and leasing assets. Optimization occurs on the level of the property, operator or property manager, and the contractors, considering ESG criteria.
Further value creation is secured through consolidation, releasing operational efficiencies and lease stabilization.
The major responsibility: sustainability and ESG
Nevertheless, asset managers in Europe are currently facing major challenges: Current environmental, social, and political conditions are challenging the industry to be more sustainable. Responsible and sustainable investing is, therefore, a core topic at DLE. We are committed to integrating ESG aspects in all funds initiated by DLE and have already implemented our ESG approach in our Sustainable Mezzanine Fund, Senior Living Fund, and Land Development Fund V, and successively enhanced ESG fund investments. As a company, we are thus placing sustainability and ESG responsibility at the center of our actions.
If you want to gain deeper insights into how we position ourselves as a real estate asset management company, click here to read our Industry Insights: Industry insights - DLE Group