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