Wirtschaftsforum: Mr. Herzog, how has STARGIME Deutschland GmbH developed over the past ten years?

Dr. Kurt-Georg Herzog: Our company was founded eleven years ago and has established itself as an investment, property, and asset manager for various Family Offices. We specialized in problem properties and problem loan commitments, which are often avoided by other investors. In recent years, we have focused on project developments, thereby expanding our portfolio. With each project, we have gained valuable experiences that have helped us refine our strategy and optimize our processes. At the end of 2019, we sold a large part of our portfolio to benefit from the favorable market situation.

Wirtschaftsforum: Why focus on problem properties?

Dr. Kurt-Georg Herzog: Problem properties often offer significant value enhancement potential. We acquire properties that institutional investors tend to avoid because they require comprehensive renovation or development measures. We gladly take on these challenges, as we are capable of revitalizing and optimizing such properties.

Wirtschaftsforum: How is your company positioned today?

Dr. Kurt-Georg Herzog: We have locations in Germany, Luxembourg, and Paris. In Germany, we currently employ five staff members who look after investment, asset, and property management. We work closely with our clients and manage our investments in-house to ensure trust and transparency.

Wirtschaftsforum: Can you provide us with some figures on your company's economic success?

Dr. Kurt-Georg Herzog: We currently manage about 30,000 m2 of real estate, which is significantly less than the nearly 200,000 m2 we had before the sale in 2019. However, we are in a new investment phase and are currently assessing several acquisition opportunities in Germany.

Wirtschaftsforum: How do you go about selecting new properties?

Dr. Kurt-Georg Herzog: We look for properties in good locations that have structural problems or vacancies and thus offer development potential. We do not buy fully rented properties in top locations, but focus on properties that can be revitalized. In doing so, we place great importance on holding the properties for the long term and developing them sustainably.

Wirtschaftsforum: Can you give us examples of successful projects?

Dr. Kurt-Georg Herzog: One example is Kastenbauerstraße in Munich, a property we acquired in 2014. It had a structural vacancy rate of 25% and the main tenant had terminated their lease. We were able to fully rent out the property within three years and sold it in 2019 at a profit. Another example is a local supply center in Berlin, which we acquired from a bankruptcy. Here, we were able to significantly improve the tenant situation through expansions and new settlements.

Wirtschaftsforum: What are the success factors of your company?

Dr. Kurt-Georg Herzog: A key success factor is that we implement our own business plans. We manage our properties ourselves, from acquisition to long-term administration. This allows us precise control and ensures the quality of our work. Additionally, we do not have investment pressure since we are not bound by annual return expectations, but rather operate sustainably and in the long term.

Wirtschaftsforum: What trends and developments do you currently see in the real estate market?

Dr. Kurt-Georg Herzog: The office market is undergoing significant changes, particularly due to the influence of home offices and the need for central locations. We expect that the prices for office properties will continue to decline. We also continue to see good prospects in retail.

Wirtschaftsforum: Where do you see your company in the next three to five years?

Dr. Kurt-Georg Herzog: We plan significant investments in Germany and want to expand our portfolio again. The focus will be on office, retail, and light industrial properties. Depending on the opportunity and market situation, also in other markets. Our long-term strategy remains to make sustainable and value-enhancing investments.