Buy & Hold Strategy
Challenges
- Institutional real estate investors react with new product requirements to changing framework conditions
- This leads to new business models for investment managers
- The shift from buy & sell to buy & hold strategies due to
- Times of crisis and dropping of markets
- Increasing prices, decreasing purchase yield
- Shortage of equivalent properties as well as
- Change of statutory framework conditions
This leads to a change of paradigms
Project approach
- Analysis of significant and relevant units (asset management, letting etc.) regarding:
- Roles and tasks
- Value creation depth and mainly process efficiency
- Check of core elements investment processes as well as general property strategy („blueprint“)
- Benchmarking and comparison of KPI‘s with „best practice“
- Structure alignment of business design buy & hold with current organisation model
- Preparation of target structure as well as definition of spheres of activity
- Alignment of processes and interfaces as well as property strategy with the new target structure
- Implementation of modified structures and change management
Results
- Adjustment of Target Operating Models (TOM) with the objective of strengthening and optimisation of profit in the existing business
- Optimisation resp. adjustment of all respective management, core and support processes
- Adjustment steering, reporting, IT
- Adjustment property strategies
- Option of action regarding revenue model (fee model etc.)
- Implementation of effective and sustainable hold strategy including options of action resulting from this business strategy for the whole organisation
- Creation of a sustainable organisation in times of crisis