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