With the financial investor Activum SG as its new main shareholder, developer Centralis announced in 2025 its intention to build a €500 million portfolio of serviced apartments. This goal is now within reach.
Activum SG joined the serviced-apartment-focused developer Centralis in the middle of last year with the aim of building a portfolio with a gross asset value of €500 million in the medium term. Centralis already contributed nine properties with 550 units, some still under development and others already reopened.
These included the Sternhotel at Bonn’s market square, a property at Fischmarkt in Cologne, and a previously stalled development project on Breite Gasse, one of Nuremberg’s main shopping streets.
By the end of last year, the portfolio had been expanded to 734 serviced apartments with a total volume of around €175 million, reports Fabian Vieregge, co-founder and co-CEO of Centralis. And the pace continues this year: according to him, six additional properties with more than 400 units and a combined volume of €175 million are currently in the pipeline.
For now, he is only willing to say the following:
“These are assets in Cologne, Munich, Hamburg, and Berlin that we have either already acquired or are negotiating exclusively and aim to close by mid-year.”
By the end of the year, Vieregge expects the portfolio to reach a total volume of around €400 million.
“We are definitely moving much faster than planned.”
“Inner-city hospitality will change dramatically.”
The Centralis CEO attributes the rapid growth to attractive acquisition opportunities resulting from financial pressure and insolvencies, portfolio adjustments, and owner-operators who no longer wish to continue the business – while investor interest remains relatively limited.
The company focuses on prime locations in Germany’s seven major cities as well as selected B-cities, with a particular preference for hotels that require refurbishment. Vieregge also does not rule out development projects. However, minimizing risk is key, he emphasizes.
“Before acquisition, the assets should be leased, fully financed, and free of permitting risks. In addition, we have agreed fixed prices with the general contractor for turnkey delivery.”
Centralis and Activum SG are therefore among those transforming value-add and opportunistic real estate assets into lower-risk products for a broader investor base. Vieregge sees several acquisition opportunities for his company.
“Inner-city hospitality will change dramatically. Lease agreements are expiring, and operators with very lean cost structures will take their place.”
In other words: minimal staff and little space beyond the apartments themselves. So far, Centralis has worked with operators such as Limehome, Stayery, and Bob W. Expansion into other European markets is also being considered together with operating partners.
According to Vieregge, the portfolio size has no upper limit. As long as market conditions remain favorable, acquisitions will continue. For the time being, however, the focus will remain on Germany.
“There are still many opportunities here that we want to seize.”