A dedicated investor specializing in German commercial real estate debt

Albulus is an investment adviser based in Frankfurt am Main, Germany, specialising in investments in subperforming and nonperforming commercial real estate loans. The Luxembourg-based Albulus CREDIT fund invests in maturing real estate debt in Germany for institutional investors.

As part of its distressed opportunities strategy, Albulus manages three customized investment mandates on behalf of one international and two German investors, targeting investments in nonperforming real estate loans. Since its establishment in 2011, Albulus has invested EUR 500 million equity capital in 19 successful transactions. The Albulus team has extensive expertise in the acquisition and workout of loans secured by

commercial property in Germany. It is headed by company founder Dr. Ruprecht Hellauer and his longstanding business partners, Dr. Tobias Friedrich and Christoph Schröder. Over the past 15 years, the management team has overseen investments in real estate debt with a nominal value of more than EUR 2 billion, and has managed loan workout with a volume in excess of EUR 1.5 billion.

Investment strategy

Effective loan workout and proactive asset management as value drivers

Distressed commercial real estate loans are in the investment focus of Albulus if loans have either already been terminated or are rescindable, allowing for an efficient loan workout that secures control over the commercial properties serving as collateral. Investment decisions are based on a rigorous due diligence process covering both the loans and the properties pledged as collateral.

Following acquisition of the loan receivables, the Albulus team draws on the tried-and-tested Albulus toolkit, which, since 2004, has proved to be effective in the workout of distressed commercial real estate debt with an aggregate nominal value of EUR 1.5 billion. The Albulus toolkit consists of:

  • Targeted equity investment in the modernisation or renovation of the commercial properties pledged as collateral
  • Appreciation through the extension or signing of new, value-enhancing leases, plus repositioning of the properties pledged as collateral
  • Assertion of claims to receive equity distributions
  • Identification and release of the inherent value in 'forgotten' additional collateral
  • Exercise of special termination rights to increase current rental market potentials

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