International real estate advisor Savills has launched a new team in Germany focused exclusively on value-add sales and acquisitions across the country in response to growing investor demand for such product. The team is headed by associate director Alexander Zahrt and sits within the wider commercial investment department at Savills Germany.

The firm’s research has identified increased investor demand for value-add opportunities across German commercial property markets. This trend is reflected by the hardening of secondary yields for non-CBD offices across Germany’s top six markets to 6.6% in Q3 2013, from 6.7% in the previous quarter.

Nonetheless, Savills notes that the risk premium for secondary product continues to be significantly higher than prior to the financial crisis, when yields for secondary non-CBD ofices reached an average of6.0%. With positive financial and economic forecasts in Germany, the firm believes now is the time to invest in secondary stock and for this reason it has set up a dedicated consultancy team to advise on such transactions.

Alexander Zahrt, associate director at Savills Germany, says: “Foreign investors, particularly those from Anglo-Saxon countries, tend to be more risk-embracing and are increasingly interested in opportunities to acquire secondary assets in order to raise their value and rental income through targeted and effective asset management. We find that these more opportunistic investors are often fully focused on the non-core segment, and with the creation of this team we can assist them in the acquisition and sales process of this asset type.”

Andreas Wende, COO and head of investment at Savills Germany, adds: “It is our goal to provide the best advice and highest possible level of service for our clients. This includes meeting our clients’ requirements with tailored real estate products. We firmly believe that by creating this specialist team which will work from within the national investment department but focus solely on value-add sales and acquisitions, we are further expanding this service offering and will increase our market share.”