Asset-Management

Real estate asset management (REAM) generally refers to the active planning, management, implementation and controlling of all measures that influence the value of a property or property portfolio at the property level during the management phase. Selective actions along the entire value chain of a property investment are taken as measures to increase the value of the property in order to achieve an optimal return on the capital employed through its ongoing management and possible future sale.1
Asset management always operates in accordance with the specifications of portfolio management in order to meet the objectives of the owner.

Accordingly, real estate asset management is located at the strategic property level below investment and portfolio management.

 

Source: Gesellschaft für Immobilienwirtschaftliche Forschung e. V. (gif) (2011): Begrifflichkei-ten/Managementebenen/Funktionsbereich. Managementebenen. Abrufbar im Internet. URL: http://www.gif-wiki.de/w/Begrifflichkeiten/Managementebenen/Funktionsbereiche. Stand: 16.10.2015.

While real estate asset management operates only at the strategic property level, this can include the management of both individual properties and whole portfolios.2
From the analysis and valuation of properties and portfolios to management and optimisation to sales, real estate asset management is active throughout the value-adding phase of a property. Together with portfolio management, property strategies are prepared that are adapted and implemented over the entire holding period. Asset management even handles or assists in the sale of the property.

The respective services can differ greatly between individual companies. However, the following tasks in particular can be assigned to real estate asset management: 

  • Definition of a property strategy including continuous adaptation and ongoing implementation
  • Representing owners’ interests
  • Handling owners’ duties
  • Optimising and reducing running costs
  • Preparing business plans
  • Managing and controlling property management, facility management and possibly other services providers
  • Quality management with regard to external service providers at property level
  • Ongoing operating property reporting to portfolio management
  • Monitoring of ongoing property performance
  • Assisting portfolio management in portfolio analyses and asset reports
  • Identifying divestment opportunities and managing/implementing the sale
  • 1 Vgl. Hoerr, Pamela (2011): Real Estate Asset Management. In: Rottke, Nico B.; Thomas, Matthias: Immobilienwirtschaftslehre Band I. Management, Köln, S. 637.
  • 2 Vgl. Hoerr, Pamela (2011): Real Estate Asset Management. In: Rottke, Nico B.; Thomas, Matthias: Immobilienwirtschaftslehre Band I. Management, Köln, S. 637.
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: 25.06.2019