Professional and sustainable portfolio development as a guarantee for success
Key Feature: Asset Management
Under rapidly changing market conditions, asset management is currently coming into sharper focus. Why? The three central pillars of real estate companies are investment, financing and asset management. Three corporate foundations whose performance increases to the extent that they are supported by marketing, communications and brand expertise.
Investment and financing face much more complex challenges
Investment and financing are under pressure as they have not been for many years. The phase of low-interest rates is a thing of the past. Financing has become much more complex. Meanwhile, real estate prices are in a state of limbo at the beginning of 2023. The price expectations of sellers and buyers are moving away rather than coming closer. A stalemate. So that neither side has to sacrifice its queen, transactions are taking place much less frequently.
Last Man Standing: Asset Management. Under these conditions, professional asset preservation and development play a much more important role. While in past decades the focus was on higher and further, the current key feature is the optimization of properties in order to leverage value even when the real estate market is supposedly at a standstill.
This is what we mean by professional asset management
As an advisory unit for the investment team, Asset Management is already an important player in the acquisition phase. With its professional expertise, it quantifies the value and development potential of properties in advance and contributes to the company’s success even at this early stage.
When purchased properties are transferred to the portfolio, companies that have an asset management team with a healthy mix of experience and new ideas have a clear advantage. André Bruchmann, Managing Director Asset Management at MÄHREN AG: “The housing industry and all related commercial and technical management processes have changed significantly over the past 20 years. Especially in recent times, there have been increasing demands with regard to housing policy requirements as well as new regulations with regard to energy-economic goals.”
This is what we mean by professional asset management
As an advisory unit for the investment team, Asset Management is already an important player in the acquisition phase. With its professional expertise, it quantifies the value and development potential of properties in advance and contributes to the company’s success even at this early stage.
When purchased properties are transferred to the portfolio, companies that have an asset management team with a healthy mix of experience and new ideas have a clear advantage. André Bruchmann, Managing Director Asset Management at MÄHREN AG: “The housing industry and all related commercial and technical management processes have changed significantly over the past 20 years. Especially in recent times, there have been increasing demands with regard to housing policy requirements as well as new regulations with regard to energy-economic goals.
The demands placed on asset management have changed significantly.
Professionalism, collaboration and digitization
The more professionally the team is set up here and the colleagues also continuously develop themselves for the requirements of the future, the better value creation is possible.”
The basis and essential for success: optimal cooperation with property managers. Bruchmann: “We rely on a uniform communication and reporting structure, which we have consistently expanded and improved digitally together with our partners in recent years. This includes, among other things, a common data system and a uniform jour fix system to stem the flood of e-mails and keep the focus on the essentials.”
Professionalism, collaboration and digitization
The more professionally the team is set up here and the colleagues also continuously develop themselves for the requirements of the future, the better value creation is possible.”
The basis and essential for success: optimal cooperation with property managers. Bruchmann: “We rely on a uniform communication and reporting structure, which we have consistently expanded and improved digitally together with our partners in recent years. This includes, among other things, a common data system and a uniform jour fix system to stem the flood of e-mails and keep the focus on the essentials.”
The goals of our asset management
The rapid and sustainable provision of housing with short vacancy periods for new tenants, the activation of undeveloped areas, such as attics, and the creation of new, additional living space – keyword: redensification – are the foundations of successful portfolio development.
Bruchmann: “With the help of maintenance and further development of the building substance, we increase the value of the real estate and at the same time make modernized living space available to the tenants. In doing so, it is important to build and maintain a well-functioning partner network, especially in the area of craftsmanship. Crucial to our strategy: the 100% integration of our construction department within the company, which closely coordinates all construction measures with the asset management team.
In addition, to carry out proper management and maintain the value of our residential properties, we ensure the maintenance and increase of rental income in compliance with rental law.”
How can value increases be achieved?
First, a comprehensive inventory and analysis is necessary. Existing space and potential for expansion must be examined in detail. Together with a location and market research, we then plan development measures. The key to success here is proper communication with all parties involved, such as tenants, property neighbors, commercial neighbors or authorities. True to the motto “communication is everything”, we bring the various requirements together in advance and thus avoid lengthy planning phases. The right steps for the development of the real estate portfolio can then be implemented in the form of sensible measures to increase the value of the properties.
Only with a lot of experience, new approaches, a lot of local knowledge, appreciation and a lot of foresight is it possible to manage properties satisfactorily for tenants and owners alike and thus achieve increases in value.
Our approach: thinking around the corner. Trying out new things in addition to common measures.
Our approach here: also think around the corner. Trying out new things. In addition to well-known and common measures such as covered bicycle parking spaces or car parking spaces, we rely, for example, on the installation of parcel acceptance boxes or ATMs directly at the property, the creation of tenant gardens or the rededication of underground parking spaces into practical carwash boxes.
Asset development in dense, urban areas
Functioning asset management is particularly important in dense urban areas. Here, it is primarily tenants and business operators who benefit from sensible portfolio development.
The energy component
When it comes to structural measures, we are increasingly asking: How can we develop the existing building stock in terms of energy? What measures are possible to improve energy efficiency? As asset managers, we are now thinking about how portfolio development can simultaneously improve the living situation of tenants, increase property value and reduce the carbon footprint.
Win-win: tenants and landlords with the same goals
We talk to tenants. Ongoing. Dissatisfied tenants quit and cause turnover, vacancies and rent losses. We exchange ideas with private and commercial tenants, even about the little things, so we can act quickly and sensibly.
We ask ourselves: what can we do for tenants to improve the residential or commercial situation and at the same time increase the value of the properties through sensible portfolio development? We listen and make sure that the rented space will function in the long term.
Win-win: tenants and landlords with the same goals
We talk to tenants. Ongoing. Dissatisfied tenants quit and cause turnover, vacancies and rent losses. We exchange ideas with private and commercial tenants, even about the little things, so we can act quickly and sensibly.
We ask ourselves: what can we do for tenants to improve the residential or commercial situation and at the same time increase the value of the properties through sensible portfolio development? We listen and make sure that the rented space will function in the long term.
We talk to tenants. Dissatisfied tenants quit and cause vacancies.
In the commercial sector, when it comes to new leases we check how well the industry fits into the neighborhood. Is it specialty retail, a social service agency, is it offices or services or a restaurant that is needed? Does the commercial tenant offer a reasonable local supply and does it fit into the milieu? This is the only way to ensure the success of the business and thus a long-term lease.
What can we basically do for tenants?
Consistent housing quality, functioning building services, as well as reliable contact persons and an open ear for tenants in property management should be the foundation of every real estate company. In appropriate areas, we also rely on a proven security and vandalism concept to guarantee tenant safety.
How do MÄHREN AG’s market advantages come about?
Dennis Rekittke, COO of MÄHREN AG: “We see the insourcing model as a competitive advantage. The Investment, Asset Management and Construction business units work as a joint team under the corporate umbrella of MÄHREN AG on jointly defined goals.”
We rely on synergies through optimally networked in-house teams and ongoing digitization.
This results in short and fast decision-making paths, a clear, shared understanding of the goals of our business activities, a targeted and efficient budget allocation, and a shared identification with our properties: “We all know our houses and apartment complexes.”
In addition, for some years now we have been focusing on consistent digitization of many of our work processes internally and with service providers. This enables us to achieve smoother processes, reduced susceptibility to errors, time savings and cost savings.
What our business partners say