- Fund for institutional investors with a focus on residential properties
- Significant participation by ABG Real Estate Group and HanseMerkur
- Focus on metropolitan regions and university and science cities
Hamburg/Frankfurt, 6 March 2026 – HanseMerkur Grundvermögen and ABG Real Estate Group are planning to launch a joint fund for residential project developments and redevelopments in Germany. Residential Performance Partners is aimed at institutional investors, in particular insurance companies and pension funds.
The planned fund structure provides for an equity volume of €200 to €250 million. HanseMerkur and ABG Real Estate Group intend to participate with a significant co-investment of at least 20% of the equity. The fund is targeting an IRR in the low double-digit percentage range per annum.
‘Residential Performance Partners’ will invest in project developments and redevelopments with a focus on residential properties. Selected refurbishments and conversions are also envisaged, such as the conversion of disused office space into residential use. The total investment costs per project are expected to range from €60 million to a maximum of €150 million. An initial property is currently under review.
Regionally, the investment focus is on Germany's ten leading metropolitan regions and on economically and demographically stable university and science cities. ABG Real Estate Group has five locations throughout Germany and will ensure operational proximity to the respective real estate markets, as will HanseMerkur Grundvermögen with its six regional offices nationwide.
Malte Andes, Deputy Chairman of HanseMerkur Grundvermögen, says: ‘There is still a shortage of housing in Germany. With the new residential development fund, we are combining our capital strength and real estate expertise with the proven development expertise of ABG Real Estate Group. The fund builds on the successful track record of both partners; HanseMerkur Grundvermögen alone manages 56 residential properties, among other assets. The cooperation offers investors a high degree of structural and implementation security.’
Ulrich Höller, Managing Partner of ABG Real Estate Group, emphasises: ‘The ongoing cooperation with HanseMerkur Grundvermögen is based on several jointly initiated projects and a shared understanding of quality and values. With this fund, we are deepening this partnership in order to advance residential developments with substance and make a concrete contribution to the creation of living space.’
ABG Real Estate Group and HanseMerkur Grundvermögen have worked together successfully for several years. Current joint projects include ‘Central Parx’ and ‘Palais Rossmarkt’ in Frankfurt.
About ABG Real Estate Group
The ABG Real Estate Group, founded in Munich in 1967, looks back on more than 55 years of success. With its business units Development as well as Investment and Asset Management, it covers the full real estate lifecycle from a single source – from project development and construction management to letting, financing and investment management.
The company is represented across Germany with offices in Hamburg, Frankfurt, Berlin, Cologne and Munich. With over 75 employees, the ABG Real Estate Group develops, realises and manages commercial properties as well as residential schemes and urban quarters. The current volume of assets under management amounts to more than €3.4 billion.
Its portfolio includes renowned properties such as the “Living Isar” urban quarter on the former Osram site in Munich, the Deutschlandhaus in Hamburg and VoltAir in Berlin. Current ABG projects include, among others, the Mariengärten and Quartier Helene residential and urban developments in Munich, as well as the CENTRAL PARX building ensemble and PALAIS ROSSMARKT in central Frankfurt.