Press release - ZAR Real Estate once again supports Net Zero Properties in acquisition as portfolio grows to more than 14,000 residential units

English translation of the German press release published in Germany on 1 April 2025:

Luxembourg, 01/04/25 – Net Zero Properties S.A., a portfolio company of ZAGA Capital Partners and exclusively advised by investment manager ZAR Real Estate, has successfully acquired a further residential portfolio comprising approximately 3,300 units from the ZBI Group. As a result, the total portfolio has grown to more than 14,000 residential units, providing homes for over 25,000 tenants and encompassing around 1 million square metres of lettable area across more than 70 economically strong locations, predominantly in Northern and Western Germany.

Net Zero Properties is a Luxembourg-based residential real estate platform that combines active asset management, technological innovation and a consistent ESG approach to deliver sustainable, affordable and future-proof housing within the German rental market. A defining feature of the platform is the systematic use of AI-enabled tools for the analysis, control and optimisation of the portfolio. This enhances operational efficiency and accelerates ESG transformation at asset level. In doing so, Net Zero Properties achieves significant efficiency gains and sets new benchmarks for “next generation” residential asset management.

At the heart of the ESG strategy is the “Manage-to-Green” programme, under which all existing assets are upgraded to energy efficiency classes A or B within 24 months of acquisition. This is underpinned by a fully financed investment plan covering energy-efficient refurbishments, modern heating systems, and the installation of heat pumps, solar panels and intelligent control systems. A pilot project in Remscheid—achieving an EPC upgrade from class F to A within twelve months—serves as a blueprint for rollout across the entire portfolio.

“ESG transformation is an operational reality for us—measurable, scalable and precisely managed,” explains Martin Hofmann, Chief Executive Officer of ZAR Real Estate.

Implementation is being carried out step by step and is secured through existing partner agreements and reliable supply chains. The full transformation of all 14,000 units is scheduled for completion in the first half of 2026. In parallel, Net Zero Properties is committed to social sustainability and cooperation with local communities to strengthen tenant retention and quality of life.

Against the backdrop of the ongoing shortage of housing in Germany, Net Zero Properties views its role as an active contribution to the creation and safeguarding of residential space. In addition to ESG transformation, the platform focuses on reducing vacancies, densification and the activation of underutilised areas.

In transactions, Net Zero Properties also pursues a clear off-market strategy with a focus on special situations. All acquisitions are structured on a bilateral or exclusive basis, drawing on long-standing relationships with owners, intermediaries, family offices and institutional sellers.

“Our pipeline is built on trust, speed and certainty of execution—this is what makes us successful in the current market environment,” says Andreas Hägele, Chief Investment Officer of ZAR Real Estate.
With an estimated 16% share of the German residential transaction volume in 2024, Net Zero Properties is, according to JLL, among the most active market participants. By the end of 2026, the portfolio is expected to grow to more than 40,000 units, with a substantial proportion of this growth already secured through transactions in due diligence or under exclusivity.

About Net Zero Properties S.A.

Net Zero Properties S.A. is a Luxembourg-based real estate group focused on the ownership and management of residential properties in densely populated regions of Germany. Through targeted investments in energy generation infrastructure and the use of advanced technologies such as heat pumps, photovoltaic systems and sub-metering solutions, the company aims to achieve significant savings and materially improve the energy efficiency of its buildings. In many cases, these measures are sufficient to deliver a net-zero balance even for older existing properties.
Further information on Net Zero Properties S.A. is available upon request or at www.n-z-p.com

About ZAGA Capital Partners

ZAGA Capital Partners Ltd. is a London-based private equity firm specialising in opportunistic and value-add real estate investments across Europe, with a particular focus on the German market. The firm selectively identifies investment opportunities in special situations as well as ESG-oriented strategies, pursuing an entrepreneurial approach combined with institutional investment expertise.
Further information on ZAGA Capital Partners Ltd. is available upon request or at www.zagacap.com.