Steering Model Institutional Investors

Challenges

Challenges for professional investors regarding the required risk-return-contribution of the asset class real estate have clearly increased
- Target yields are not achieved
- difficult portfolio clearance due to owner structures (indirect investments, pool funds)
- Missing influence and control opportunities from structures and processes of fund, asset and property management
- Potential divergence of interests (contractual agreements, financial incentive structures)
Indirect investments have to be repositioned
Existing contract structures with defined durations prevent an immediate adjustment

Formulation of targets and identification of potential conflicts of interest and targets
Portfolio analysis and deduction of measures for portfolio clearance
Definition of steering parameters for remuneration-related steering (incentives), controlling of main targets (e.g. vacancy rate) and for the control of sub-targets (e.g. maintenance costs)
Definition incidents, planning, forecasts etc. to be reported
Creation of blueprint-steering concept for depiction of investor interests for complete and timely observation
Definition of required structure organisation (sourcing line)
Preparation of a concrete implementation/migration plan

Measurement plan portfolio clearing/optimisation
More stringent assessment of managers (management quality) for establishing a more objective position towards the investment manager
Solution of goal conflicts and implementation concept for managing the manager
Relevant steering parameters for timely controlling (structured, condensed reporting contents)
System for regular measuring of investment-manager performance
TME offers on all relevant levels of action the relevant expertise as well as required tools to implement such a „Task-Force-Project“ successfully