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Value-add and core+ properties have gained significant ground in the German real estate investment market so far this year, according to Timo Tschammler, member of the management board of JLL in Germany. ‘About 40% of all transactions have involved value-add or core+ assets,’ he noted.

In 2011, core assets accounted for 60% of all transactions, Tschammler said. ‘There has been quite a shift in terms of asset class and risk profile so far this year. Last year, retail was the leading asset class but in the first three quarters of this year, the trend has flipped and we have seen more office deals again.’

In the nine months to end-September, offices accounted for 44% of all transactions compared to 30% for retail, figures from JLL show. Tschammler said he expected the German market to see further growth in value-add and core+ deals in 2013.

So far there has not been all that much action on the opportunistic side of the risk spectrum, but that could change as the offer side of the equation is growing, Tschammler said. ‘But pricing and financing remain a bottleneck. The core+ and value-add segments will grow more.’

While financing remains tight due to the retreat by international banks and German landesbanks which are now focusing on their core business, Tschammler said alternative sources of financing were gaining traction in Germany. ‘The retreat of the bigger banks has created more room for local savings banks – the traditional sparkassen and volksbanken. We’re also seeing insurers enter the market as lenders as well as new vehicles including mezzanine and debt funds. I think we may see growth from these sources next year.’

For the coming year, Tschammler aims to leverage more from JLL’s position as the leading adviser in Germany. ‘We are mostly known for our sales and acquisitions of big lot sizes and core assets, but we can also utilise our internationality and solid in-depth market knowledge to provide added value in other areas as well.’

Tschammler took up his new post at JLL in October. He previously worked as CEO of DTZ Germany.