Asset management

REAL ESTATE ASSET MANAGEMENT - PROPERTY OPTIMISATION ON BEHALF OF CLIENTS

The remit of asset management includes targeted property development, optimised property management, professional marketing and acquisition of real estate portfolios for international investors, banks and companies with their own property portfolios.

CORPUS SIREO Real Estate asset management services include pro-active planning, management, implementation and monitoring of all value-optimising activities involving properties or property portfolios.

Whether for investors or owner-occupiers, whether it involves apartments, complex residential packages, diverse commercial portfolios or internationally recognised landmark properties, CORPUS SIREO Real Estate performs strategic and operational asset management in line with its Mandate.

The company draws on end-to-end expertise in all asset classes throughout the entire property lifecycle, from acquisition and development through to cost-effective and value-optimising management all the way through to the property sale.

With its consistent focus on its clients and comprehensive understanding of its brief, the company delivers optimal results via a customised package of services ranging from acquisition and property management through to potential property sale.

Asset Classes

Office

From single asset trophy properties to key regional cities: we develop, acquire, manage and sell office buildings throughout Germany and all attractive European real estate markets
 

Residential

We develop and manage urban and heterogeneous residential properties across the entire real estate live cycle all over Germany
 

Retail

Retail & business buildings, high street retail, retail center: We create investment opportunities and added value for investors and owners by actively managing retail real estate
 

Health Care

We create attractive, sustainable and profitable investment opportunities in a segment that is steadily gaining in importance: facilities in the health care segment
 

Light Industrial / Logistics

Manufacturing and logistics properties benefit from our experts’ comprehensive management and marketing expertise
 

Hotel

Generating attractive investment opportunities, also repurposing and even reconstructing properties: we are steadily enlarging our activities in the hotel sector

FINDING AND RETAINING TENANTS
Micro market analysis considering asset-specific features and attainable market conditions Execution of contract extensions Preparation ...
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PROPERTY MANAGEMENT: AN INTERFACE BETWEEN THE OWNER AND THE TENANT
With its range of property management services, CORPUS SIREO Real Estate is a one-stop shop for property management. When it comes to operational ...
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REFERENCES

Asset Management Commercial

COLLABORATION MARKED BY THE FINEST REFERENCES

Jointly Achieving Set Goals. Our clients differ in terms of size, plans, and specific requirements. They include major corporations along with renowned SMEs. They all work closely with their respective client manager at CORPUS SIREO in order to mobilise the potential of their real estate or else to exploit new investment opportunities.

Investors, Companies and Banks. Our clients are as diverse as the tasks that our client managers handle and solve: From transactions of every size, all the way to commercial and technical asset management of complex portfolios, and from independent valuation or demanding project development all the way to the disposal of individual properties.

 

CLIENTS

Deutsche Telekom Logo          DWS Logo          Brookfield Logo          CERBERUS Logo          DEVK Logo


Asset Management Retail

The Retail Real Estate Experts

CORPUS SIREO has expanded its position as a leading asset management service provider by adding the retail market segment and deploying a team of renowned retail experts for this purpose.

The formation of CORPUS SIREO Asset Management Retail GmbH as a specialised service provider represents the group’s response to the keen demand for German retail real estate among investors inside and outside Germany.


SCHWABENGALERIE

Since it opened in 2004, the SchwabenGalerie has been a popular destination for the whole family because of its contemporary atmosphere, attractive brands, perfect mix of departments, short distances and great service. More than 500 people work in 50 shops here to achieve this.

Shopping is especially fun when, in addition to attractive offers for every need, there are also different promotions and events that turn a shopping trip into an experience. A worthwhile destination for every season – the SchwabenGalerie.

HARBURG ARCADEN IN HAMBURG

Shopping is especially fun when, in addition to attractive offers for every need, there are also different promotions and events that turn a shopping trip into an experience. A worthwhile destination for every season – the SchwabenGalerie.


Office, Retail and Logistics Real Estate Portfolio of the Profond Investment Foundation „Ostsee Park“ in Rostock

Asset Management Residential

SUCCESSFUL PORTFOLIO ACQUISITION WITH STRATEGIC PARTNER

(HAWK-PORTFOLIO, PAN-GERMAN)

Initial Situation

  • Pan-German diversified distressed real estate portfolio with approx. 1,000 assets and more than 22,500 units (residential and retail usage)
  • Low portfolio performance due to limited asset management and property management performance, high maintenance requirements and high vacancy requiring portfolio restructuring and the implementation of a new asset management strategy
  • Financing banks issued an invitation to tender for the sale of the portfolio to generate new equity for the portfolio turnaround

Approach
  • Cerberus and CORPUS SIREO entered the process as joint team (investor: Cerberus, real-estate advisor and asset manager: CORPUS SIREO)
  • During the acquisition process a full portfolio analysis on property level was carried out by CORPUS SIREO to identify and define a turnaround strategy, including business planning for individual properties
  • Creation of a task-force for restructuring the asset management activities after the acquisition
  • The asset management strategy comprises a letting strategy and sales strategy to reduce vacancy at short notice and to restructure the portfolio
  • Definition of efficient asset management and administrative processes (e.g. letting and maintenance processes)

Realised Outcome
  • Successful acquisition of the portfolio due to restructuring strategy satisfying all stakeholders
  • Rapid assumption of responsibility for asset management within six weeks as at mid-May 2012
  • Implementation of an integrated data management system at unit level
  • Reduction of more than 7% in vacancy levels within seven months and increase of € 0.06/m² in net cold rent
  • Sales coordination for single asset deals – first signing 10 weeks after take-over, 80 transactions closed within seven months (transaction volume € 125million)

GENERATING VALUE WITH PROACTIVE ASSET MANAGEMENT

(NUREMBERG)

Initial Situation

  • Property with 23,000 m² rental area (72% residential and 28% commercial)
  • High vacancy level due to inactive property manager
  • High level of tenant fluctuation in the residential spaces
  • 100% vacancy in commercial spaces since completion

Approach
  • Selection of new residential and commercial brokers
  • Assessment of property and facility manager and replacements
  • Establishment of a new business plan
  • Valuation of cost-effectiveness of possible modifications
  • Increase of total rental area by modification of commercial areas
  • Conversion of commercial premises to residential use (1,200 m²)
  • Investments to upgrade commercial areas (tenant improvements)
  • Renewals and new letting at market level
  • Implementation of new short-time parking system
  • Improvement of services for tenants and required maintenance

Realised Outcome
  • Between 2005 and 2012 increase in value of approx. € 4.9 million
  • Increase of 37.5% in net rental income
  • Increase of 60% in net operating income
  • Vacancy reduction of 19.5% (current vacancy rate < 2.0%)

SUCCESSFUL EXIT VIA STRUCTURED TENDERING PROCESS

(BOEHLER SIEDLUNG, DÜSSELDORF- MEERBUSCH)

Initial Situation

  • Purchase of a portfolio* in 2006 with approx. 1,700 residential units near Düsseldorf
  • Former working-class quarter, year of construction between 1955 and 1986
  • Severe restriction on rent increases and privatisation due to a social charter (valid until 2021)
  • Buildings have high maintenance requirements due to limited maintenance measures undertaken by the previous owner

Approach
  • Assumption of responsibility for asset management and creation and implementation of a new asset management strategy at the portfolio level to enhance value and to restructure the portfolio
  • Reduction of vacancy levels due to selective refurbishment of vacant units and successful letting
  • Restructuring of the portfolio by selling selected single-family houses and single residential units which are not concerned by the social charter

Realised Outcome
  • Increase of 7.5% in rental income by identifying under-rented units in accordance with the social charter and adjustments to market rent
  • Realisation of a structured selling process with five bidders
  • Identification of a purchaser who is able to handle the complicated political situation (social charter) and the ongoing maintenance issues
  • Successful sale for the designated selling price in December 2011

IMPROVED THE KEY PERFORMANCE DRIVERS BY STRATEGIC ASSET MANAGEMENT

(NATIONWIDE)

Initial Situation

  • Residential portfolio with approx. 6,400 units, assumption of responsibility for asset management by CORPUS SIREO in 2007
  • The major type of usage is residential with a percentage of approx. 80%
  • The portfolio is diversified, with main focus on Berlin and Dresden (approx. 50%)

Approach
  • Define AM/PM strategy for individual locations and individual properties according to market and property condition
  • Review property management and caretaker performance and replace where necessary to reduce tenant fluctuation and to keep property in proper condition
  • Adjust letting activities by selecting real estate agents with strong local market presence and an adequate client base, who are motivated and have commitment to letting success
  • Implement regular conference calls, perform marketing activities and check performance of estate agent, assume responsibility for commercial lettings
  • Optimisation of maintenance cost structure through combined contracts for maintenance and other services on a local basis, assess performance regularly
  • Short term PM change on 01.01.2013

Realised Outcome
  • Major reduction of structural vacancy (-3,2% within one year)
  • Net operating income increase (+8% within two years)

SUCCESSFUL PORTFOLIO STABILISATION AND PREPARATION OF EXIT

(NATIONWIDE)

Initial Situation

  • Nationwide, regionally diversified residential property portfolio with approx. 3,700 residential units and two commercial assets
  • Securitised loan, non-performing portfolio, assumption of responsibility for asset management on behalf of the special servicer
  • Significant maintenance backlog, vacancies and inefficient management require new asset management concept

Approach
  • Analysis of strategic and operational aspects of portfolio
  • Development of strategies for specific clusters and SPV*; focus on sub-clusters within residential segment and separate consideration of commercial assets; "optimising cluster" (vacancy reduction based on cash sensitive tenant improvements) and "sales cluster" (minimisation of expenditures and costs)
  • Necessary replacement of service providers (property management and brokers)
  • Implementation of efficient claim management (rent arrears and deposits)
  • Reduction of open items after negotiations with creditors
  • Preparation of exit through comprehensive data processing (set-up of data rooms)

Realised Outcome
  • Development of comprehensive asset management concept for successful stabilisation of the portfolio
  • Significant reduction of vacancy within "optimising cluster"
  • Minimising expenditures within "sales cluster" (maximum € 2,675 per unit)
  • Avoiding opening of insolvency proceedings and successful sale of the portfolio in regional cluster

ENHANCED CASH MANAGEMENT FOR INSOLVENCY ADMINISTRATOR AND CREDITORS

(NATIONWIDE)

Initial Situation

  • Nationwide residential property portfolio of approx. 6,500 residential and commercial units
  • After opening of insolvency proceedings, assumption of responsibility for asset management mandate on short notice
  • Mandated by insolvency administrator and creditors
  • Focus on securing high cash conversion (ratio of net operating income and base rent)
  • Maintenance backlog, vacancy levels and inefficient management require restructuring of portfolio and deliberate asset management approach

Approach
  • Analysis of strategic and operational aspects of portfolio
  • Development of asset management strategies (business plans) at the asset and cluster level
  • Gradual replacement of some service providers (property management and brokers)
  • Cost saving solutions for exceptional issues such as fire protection deficiencies
  • Optimising operating costs based on renegotiations with service providers
  • Intensive monitoring and reporting of key performance indicators
  • Cost and cash sensitive construction measures in order to make rental area marketable (< € 2,000 per rental unit)
  • Preparation of exit through comprehensive data processing (set-up of data rooms)

Realised Outcome
  • Stabilisation of cash conversion (> 70%) in spite of low rents and difficult tenants
  • Reduced loss of rent ("Collection loss" - difference between effective and contractual rent) of less than 2% due to efficient claim management

Michael Belau Asset Management Corporates

Stefan Korthals Asset & Property Management

Heiko Schulz-Berresheim Asset Management Residential

Karsten Burbach Asset Management Commercial/Retail

Christoph Jauck Asset Management Shopping Center

© 2017 CORPUS SIREO
https://www.corpus-sireo.com/en/services/asset-management?sc_lang=en
: 23.10.2017