PIMCO Prime Real Estate: Affordable Housing in Germany

PIMCO Prime Real Estate’s affordable housing portfolio in Germany comprises over 300 social housing units, of which more than 90% are subsidised. Located in well-connected neighbourhoods with access to schools and daycare centres, the homes serve lower income groups including young professionals, retirees, and single-income families. Tenants are classified into three income groups to receive subsidies. Various schemes, including public subsidized loans, have been employed to bridge property and tenancy cost gaps, and mitigate leasing risk. In addition to the social benefits of this portfolio, investor climate targets were reflected in the newly completed assets, adhering to standards such as KfW 55, EnEV (Energiesparverordnung), a regulation for energy use, and CREEM decarbonization pathways.