Prop.com | Investment Strategies

Our Investment Strategies

Non-Performing Loans (NPLs) & Distressed Acquisitions

Rising interest rates, regulatory requirements, and shifting capital structures are creating a sustained pipeline of NPL and distressed real estate transactions across Europe. Germany, in particular, remains a key entry point, with significant volumes of residential and commercial collateral expected to come to market.

Through PropCapital, Prop.com sources NPL portfolios and distressed assets directly from banks, loan servicers, institutional funds, and insolvency processes. Our approach focuses on complex, value-add situations where restructuring, collateral repositioning, and disciplined workout strategies can deliver attractive, risk-adjusted returns.

We acquire non-performing loans and distressed real estate directly from banks, asset managers, and institutional funds.

Target Returns

+15% IRR

Hold Period

2-4 Years

Geography

Europe (Germany as primary entry point).

Structure

Credit, equity restructuring, securitisation

Ticket Size

€50-300M portfolios

Risk Management

Institutional servicing partnerships, local asset management execution under Prop.com governance, and data-driven management / reporting via PropChain

Case Study

Acquisition of a distressed residential portfolio in Germany with accelerated recovery opportunity through repositioning.

European Micro-Living

Global demand for innovative types of living is rising as urbanisation increases worldwide. Beyond student housing and serviced apartments, this includes co-living concepts and hospitality-driven uses such as hostels. These formats combine compact, efficient residential units with complementary amenities such as gastronomy, co-working, and communal spaces.

Tenant demand in this segment remains exceptionally strong, supporting above-average rental yields per sqm. Professional operators can manage these assets efficiently, thanks to the integration of tenant apps, smart-building components, and digital tools enables data-driven asset management and operational scalability.

This residential sub-sector benefits from a large stock of under-managed existing assets and the ability to capture high market rents that cover elevated construction costs — driving strong income streams, resilient demand, and attractive exit valuations.

Target Returns

+15% IRR

Hold Period

2-4 Years

Geography

Established European metropolitan areas

Structure

Value Add Equity

Ticket Size

€10–150M assets and portfolios

Risk Management

Diversified urban locations, professional operator partnerships, digital management infrastructure

Case Study

A pipeline of student and young professional-focused projects under PropManagement oversight, combining compact units with shared amenities and digitalized operations.

Office Transformations

Europe’s office market faces structural change: a growing stock of redundant buildings, particularly in non-prime micro-locations no longer meets occupier requirements. These assets, however, offer significant upside potential when repositioned into modern, sustainable workplaces or converted into (commercial) living space such as micro-living.

Our strategy focuses on targeted repositioning opportunities where floor-plate depth, natural light, cores, and ESG upgrade pathways allow for an efficient transformation. This creates the opportunity to capture rental uplift, generates resilient income streams, and realises attractive exit valuations.

Target Returns

+15% IRR

Hold Period

2-4 Years

Geography

Europe

Structure

Equity and preferred equity

Ticket Size

€15–100M assets and portfolios

Risk Management

Rigorous screening criteria (layout, ESG potential), tenant pre-commitments where possible, and partnerships with experienced development contractors and leading operators

Case Study

We are actively advancing office transformation opportunities across Germany, with our current pipeline representing over 500 residential and serviced micro-living units in cities such as Munich, Frankfurt, and Berlin.

Residential Brown-to-Green

A large part of Europe’s residential sector faces a structural challenge: a significant share of housing stock is outdated and fails to meet modern energy efficiency and ESG standards. At the same time, EU directives and investor demand for sustainable portfolios are accelerating the need for refurbishment.

Our strategy addresses this necessary transformation. By upgrading outdated residential assets to energy-efficient, ESG-compliant housing, we create value for investors.

Legal frameworks in Germany and the wider EU enable rent increases linked to energy-efficiency improvements, while attractive public incentive schemes, such as subsidised loans and repayment grants from institutions like KfW and BAFA—support renovation financing. In a market with limited new construction, refurbishing existing buildings also transforms them into institutional-quality residential portfolios which are increasingly scarce.

Target Returns

+15% IRR

Hold Period

3–5 years

Geography

Germany, Luxembourg, wider EU

Structure

Equity and preferred equity

Ticket Size

€10–150M assets and portfolios

Risk Management

Clear ESG frameworks, PropChain-enabled compliance monitoring, and on-the-ground execution via PropManagement

Case Study

Refurbishment of a German residential portfolio resulting in a significant ESG score uplift, reduced energy costs, and rental premium at exit.

UAE Residential Refurbishments & Developments

The UAE is one of the fastest-growing global residential markets, driven by strong population growth and a sustained influx of (U-)HNWIs. At the same time, a significant share of the existing villa stock is outdated and fails to meet the expectations of this target group.

This creates a compelling opportunity: by refurbishing the assets to the highest international standards or selectively developing premium new-builds, Prop.com captures strong existing demand, generates stable and solid income, and achieves premium exit multiples.

Target Returns

+20% IRR

Hold Period

2–4 years

Geography

UAE (Dubai, Abu Dhabi)

Structure

Equity and credit

Ticket Size

$10–50M assets and developments

Risk Management

Strong JV partnerships with local developers, phased construction monitoring, and PropChain-enabled investor dashboards for live reporting

Case Study

Redevelopment of prime Dubai villas into modern luxury residences, achieving rapid sales velocity and above-target exit valuations.