As a real estate valued add investor in German real estate, you make your profit from buying cheap assets with vacancy, you reduce vacancy in the asset and sell at the same or better caprate (if you hit the cycle right) you bought the asset for. Business plan timings are mostly 24-36 month.
The GP needs to deliver the right message to his operating partner/asset manager (internal and external) and makes them aware of the right type of investments into the property.
Managing this aspect is key to get to your target IRR.
Given the short business plan timing, the investor needs an asset manager who really cares and understands the financial mechanics behind these transactions.
BHPERE´s (Boris Hardi Private Equity Real Estate Consulting) founder managed >500 Real Estate professionals in the last 15 years for international private equity investors in Germany. Every asset class needs a different approach and investment/refurbishment strategy to be appealing for new tenants and to attract the right capital for the exit at the end of the businessplan lifetime.
BHPERE´s Soluvend™ method works with incredibly easy to use and teach tools, invented in and for the German commercial real estate market. Especially in the high yield, value add, opportunistic real estate space.
Soluvend uses an easy to use matrix based on:
- WALT
- Average sqm rent (whole building)
- Occupancy in percent
- Contact me to learn more about how to implement our approach to achieve short term results.
