Only properties from the medium-sized residential segment in Germany can be considered as fund properties. Luxury real estate does not fit into the fund's investment spectrum. After a property has gone through the investment process, in which sustainability criteria are firmly anchored, and has been able to be purchased for the fund, the detailed planning of investment expenditure begins and the decision is made as to which measures should be implemented for the holding period of each property. The decisive variables for sustainable capex planning are the quality of living, living comfort as well as living space and energy efficiency.
Since the energy requirements of each property are identified and analyzed during purchase, the strategy at property level is to achieve energy-related modernizations or measures to improve the energy balance of the property to a maximum of 200 kWh/m². By energy measures we mean renovations and modernizations that serve to reduce the energy consumption of a building. In order to achieve this goal, the property is first comprehensively analyzed and structural defects as well as potential savings in consumption are identified. This means that older properties can be developed up to the level of a new building in accordance with the Energy Saving Ordinance. These include, for example, efficient thermal insulation, the installation of modern insulating glass windows, the modernization of sanitary systems and the use of heating systems that are technically state-of-the-art. An individual action plan is then created for each individual building, which means that significantly better values than 200 kWh/m² can be achieved for parts of the portfolio.
Further measures aim to improve the quality of living. This means that outdoor areas are designed to be friendly and inviting and are continually managed. Planting is expanded wherever possible. Part of the strategy is to create additional living space wherever possible and economically sensible. If acquired land allows new residential buildings to be built or properties can be expanded, this densification creates new living space, which is urgently needed, especially in metropolitan areas.
Since the investment vehicle primarily purchases rental properties, the dii Group has adopted its own social charter, which regulates respectful and sustainable treatment of tenants. The Social Charter sets out the guidelines and principles that are intended to ensure compliance with social, ecological and sustainable obligations in the context of the investment and management of residential real estate. These include extended protection against dismissal for older or physically disabled existing tenants, hardship regulations for low-income tenants, a lifelong housing guarantee or the intention to continuously increase the proportion of barrier-free and age-appropriate apartments through investments in the context of vacancy renovations. Active additional cost management, transparent communication, sustainable neighborhood development and the exclusion of luxury modernizations are also part of the social charter.