backThe article analyzes the growing importance of military and defence-related real estate as Europe ramps up its defence capabilities. After decades of conversion to civilian use, significant investment is now required for new military infrastructure, including bases, production facilities, data centers, energy supply and cybersecurity assets. Institutional investors are increasingly considering this segment due to long-term state tenants, high payment security and attractive, relatively stable returns, despite regulatory, ESG and liquidity challenges. Axel Schilder highlights that structured models - such as long-term leasing and fund-based platforms, supported by recent regulatory changes - could make defence real estate a viable investment class for institutional capital. The article is available only in German.
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