Sonar Real Estate GmbH (Sonar), an owner-managed real estate company for investment and asset management as well as development, has increased its assets under management by 108%, from EUR 1.2 billion to EUR 2.5 billion in the first twelve months since its spin-off from Barings. Factors behind the increase included receiving instructions for the asset management of the āSQUAIREā in Frankfurt, Germanyās largest office property.
Over the last year, Sonar facilitated three major transactions, with a total transaction volume of EUR 1.1 billion, for its partners and clients. They included around EUR 927 mn of acquisitions and EUR 200 million of sales.
In July 2021, this resulted in the firm taking over the asset management of the Summit portfolio for the “EPISO 5” fund, advised by Tristan Capital. For this purpose, Sonar founded a joint venture with Rockspire GmbH and DW Real Estate GmbH, to manage the properties that provide a total of around 630,000 square metres of lettable commercial space.
Sonar also concluded leases on around 55,300 square metres of space within the properties it manages. New lettings accounted for 37,000 square metres of this total, with lease extensions making up 18,300 square metres. The largest single letting was the lease of 21,500 sqm of office space in Berlin Mitte to BImA Institute for Federal Real Estate.
Sonar has also implemented CapEx, T.I. and refurbishment works with a volume of EUR 14.8 million in the properties it has under management.
The extraordinarily rapid growth of the company is reflected in its increased number of staff. By the end of 2021, 34 people, exactly twice as many as twelve months earlier, were employed in Sonarās five offices across Germany.
Christoph Wittkop, Managing Director/CEO of Sonar, comments: “Our first year was extraordinarily successful. The spirit and the trustful cohesion of our dynamic team are excellent. This is an important success factor in accomplishing growth in our day-to-day work. This year, we expect a continued upward trend in the number of instructions managed, notwithstanding that the market situation for opportunity-oriented investments with value creation potential remains challenging. We will further strengthen our position in the area of development/revitalisation. We aim to grow further in this area. In addition, we are considering expanding the asset classes in which we are active.”
