The Hidden Edge
Featured in Investment & Pensions Europe, Stefano Giardina, Managing Director Real Estate and CIO at Arrow Germany, explains why the next wave of alpha will come from Europe’s small, stranded assets rather than headline grabbing portfolios.
Capital has become scarce and cautious, leaving many German developments half-finished. Arrow’s answer is to be present, be precise and create value rather than simply buy it.
Arrow recently acquired Interboden out of insolvency, adding €500 million of gross development value and an experienced operating team under one roof, and has since deepened its German footprint by taking over certain assets of Berlin-based residential specialist Ziegert. The transaction shows what ‘boots on the ground’ really means: local sourcing, rapid underwriting, and decisive ESG-centred repositioning.
Success rests on three ingredients. First, Germany’s transparent insolvency framework creates structured distress that allows agile investors to secure clean titles quickly. Second, a balanced capital expenditure plan that marries defensive works, which safeguard eventual sale value, with accretive improvements such as renewables, district-heating connections and strong EPC ratings increases operating income and liquidity. Third, longer leases and the growing preference among tenants for greener buildings translate into commitments lasting five to ten years, stabilising cash flows.
The most attractive risk adjusted returns now lie in convenience anchored retail centres and across the full spectrum of living assets, from student accommodation to senior housing.
In today’s cycle, Stefano says investors cannot remain passive capital allocators; they must become value builders.
Read the full article online.
Stefano Giardina
Managing Director, Real Estate and CIO of Arrow Germany
Stefano Giardina recently joined Arrow Global to help grow the company’s real estate business in Continental Europe.
With over 20 years of experience in real estate, Stefano began his career at Citigroup Investment Banking in London and New York, where he was involved in a broad range of real estate underwriting, structuring, and deal execution across EMEA and North America. He later joined Citigroup’s real estate private equity arm, where he was responsible for originating and investing across Continental Europe. Most recently, he worked at ALTERX, a real estate operating partner backed by The Baupost Group, where he led investments and strategic asset management in the DACH region.
Stefano holds a Master of Science from ESCP Business School and a Laurea Magistrale (master’s degree level) in Political Science from the University of Turin.