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Two hands are better than one: Joint ventures remain relevant for cross-border investors looking to gain entry to the German market
The practice of international investors joining forces with German investment managers and other market players is not a new trend. Since at least 2010 — when it became increasingly evident that there was a real estate boom looming on the horizon — investors from Scandinavia and Asia in particular have joined forces with German real estate experts to enter Germany’s real estate market.
These capital allocators were often from the private equity segment or institutional space and were looking to benefit, above all, from the local knowledge that German partners could provide. And whether it was through a joint venture or the purchasing of minority shareholdings in high-value projects, the collaboration led to the establishment of many win-win situations.
Towards the end of the 2010s, however, the relevance of this model had declined. This was partly down to an increase in valuation levels, which meant that the only investors who had enough purchasing power to enter