Value-add and repositioning for real estate in Germany
A value-add business plan stands or falls with the building: what the structure allows, what the works cost, how long permits and construction take and which risks sit in the existing fabric. Our civil engineers provide that technical side for investors in Germany and deliver the chosen option on site.
Value-add is a market term for strategies that upgrade an asset with vacancy, deferred maintenance or an outdated use through capital works and re-letting. Repositioning is the way there: refurbishment, office-to-residential conversion, mixed use, additional storeys or a new letting concept. Schneider Theißing provides the technical side of the business case in Germany, that is building condition, options, CapEx by DIN 276 cost groups, schedule, permits and risks, and delivers the works as project manager and site supervisor until handover to asset management. Return targets stay with the investor.
- Region: Frankfurt Rhine-Main, Bergstraße, Rhine-Neckar; Germany by project
- Standards: DIN 276 cost groups, HOAI phase 8, AHO project management, VOB/B
- Fees: written proposal after your request
Why the technical side decides a value-add case
Value-add underwriting usually starts with rents, exit assumptions and a single CapEx line. In existing German buildings that CapEx line is where most surprises sit: escape routes and fire separation for new units, sound insulation between uses, hazardous materials in finishes, structural capacity for new loads and the time a building permit takes. A figure that has not been checked on site is an assumption.
We inspect the building, develop options with cost and schedule, explain the German permit route and the risks, and then manage delivery. Your asset manager combines this with the income side and decides.
For international investors we also translate German practice: DIN 276 cost groups, HOAI and AHO service phases, VOB/B contracts and state building codes such as the Hessian building code (HBO). We work in Frankfurt and the wider Rhine-Main region, on the Bergstraße and in Rhine-Neckar, and by project elsewhere in Germany.
Discuss a value-add or repositioning asset
Core, core-plus, value-add and opportunistic
These are conventions from fund and investment management, not legal categories. INREV, the European association for investors in non-listed real estate vehicles, classifies funds as core, value added or opportunity by the share of non-income producing investments, development exposure and leverage. Core-plus is a common intermediate step in the market.
| Strategy | In one sentence | Our technical role |
|---|---|---|
| Core | Let assets in good locations and good condition whose return comes mainly from current rent. | Acquisition review, maintenance and CapEx planning |
| Core-plus | Assets close to the core profile with limited work required, such as some vacancy or upcoming refurbishment. | Technical due diligence, CapEx plan, targeted refurbishment |
| Value-add | Assets with significant vacancy, deferred maintenance or an outdated use that are to be upgraded through capital works and re-letting. | Repositioning: options, technical business case, project management, site supervision |
| Opportunistic | Strategies with a high share of development, large-scale conversion or special situations and correspondingly high risk. | Feasibility, project preparation, owner's representation |
Market terms in one sentence each. How an asset is classified depends on the strategy and the investor.
Levers for repositioning an asset in Germany
Façade, windows, roof, heating and ventilation in line with the German Building Modernisation Act (GModG, formerly GEG) and, where required, funding standards. A CapEx plan sets the sequence of measures per building element and year.
In Hesse the change of use needs a building permit (section 62 HBO). The code eases conversions: several fire requirements for existing walls, floors, stairs and corridors do not apply (section 51(4) HBO), a clear room height of 2.10 m is sufficient (section 50(1) HBO) and the number of required parking spaces does not increase (section 52(1) HBO). Every flat still needs two independent escape routes (section 36 HBO).
Where the zoning plan excludes housing, section 246e of the Federal Building Code (BauGB) allows deviations for residential projects, including conversions, with the municipality's consent until 31 December 2030. Mixed areas, urban areas (section 6a BauNVO) and core areas allow mixed use within their limits.
Since 1 July 2026 the KfW programme 266 “Gewerbe zu Wohnen” grants 30 percent of up to EUR 100,000 eligible conversion costs per new flat. The flats must reach at least Efficiency House 85 EE and the application must be filed before contracts are signed. KfW's conditions on the day of application apply; we do not provide funding advice.
Retail or food and beverage on the ground floor with flats above, or additional storeys on an existing building. Sound insulation, fire separation, separate access, kitchen exhaust and metering decide whether the uses work together.
Floor plates, divisibility, fit-out standard and landlord and tenant interfaces drive lettability, and energy data and the CO2 path feature in many financing and leasing discussions. We provide layouts, fit-out costs and schedules; the letting strategy stays with your letting team.
The technical business case
CapEx and schedule
Costs per option by DIN 276 cost groups with stated uncertainties, and a schedule covering design, permit, tendering and construction, linked to lease expiries.
Risks in existing buildings
Structure, hazardous materials, fire safety, moisture and building services carry the largest cost risks. We name them, estimate ranges and propose investigations that reduce uncertainty before the investment decision.
Permits
We pre-check planning law, building code, heritage protection and parking with your designers and the building authority, if needed through a preliminary building enquiry (section 76 HBO). Legal assessments remain with your lawyers.
Building in operation
Works with remaining tenants, phasing, noise and dust protection and escape routes during construction often drive cost and duration more than the construction work itself.
Rents, exit values, financing and return targets are set by you or your asset manager. We do not promise returns or value increases. Tax questions remain with your tax advisers.
How a repositioning runs with us
Building analysis
Inspection, documents, condition per building element, areas and uses, planning law and conditions of existing permits.
Options
Two to four variants, such as refurbishment, conversion, mixed use or additional storeys, each with areas, cost, schedule, permit route and risks.
Business case with the investor
We combine the technical figures with your income and financing assumptions and discuss sensitivities. You decide on the variant.
Delivery
Project management under AHO and site supervision under HOAI phase 8: tendering, cost and schedule control, change orders, quality and acceptance. See owner's representative and construction supervision.
Handover to asset management
Documentation, warranty periods, maintenance contracts and the updated CapEx plan go to your asset management. On request we continue with technical asset management.
Frequently asked questions
Who you work with
Moritz SchneiderManaging Director, civil engineer (M.Eng.), Master of Arts in construction law and construction management
Christoph TheißingManaging Director, civil engineer (B.Eng.), Master of Science in real estate (EBS Universität), MBA (Korea University)
Experience supportingIndustrial halls, building construction, refurbishment and new build, multi-storey residential, logistics, data centers, fibre network rollout (FTTH)
How we workOn construction projects we act for the owner only. Both managing directors work on each mandate themselves, together with our team. Scope and fee are set out in a written proposal before work starts.
Test the technical side of your value-add case
Tell us the asset, the intended strategy and your timeline. You receive an engineering view and a written proposal.