1. 4How do we sell a commercial property portfolio under pressure of time and in a difficult market environment?

A large German insurance company wanted to sell part of its property at short notice to lower the share of real estate in its total assets. On the books, the property was valued highly and to sell it after the end of the transaction boom of 2007 was a real challenge …

The property was scattered widely, predominantly in less desirable cities and locations, partly difficult to let and badly documented.

We supported the project from early preparations to the final sale. As a first step, we had to optimise the marketability of the objects – for example, through a renegociation of the leases, new leases and technical measures. In addition, we assisted in the fulfilment of legal requirements and drew up a vendor due diligence. The outcome of these measures and our own market value studies were summarised in separate papers and a 260-page sales memorandum.

We handled a limited number of bids in the process of selling the portfolio and supported the negotiations right up to the act of registration. Throughout the whole period of the project’s life, we had to satisfy three important demands:

  • The portfolio had to be put together in such a way that at least its book value could be held.
  • There were more than 300 weak points and unanswered questions concerning various properties that had to be dealt with to attain the highest possible selling price.
  • The presentation of the portfolio had to be perfect so that the limited number of prospective buyers would be able to examine it easily and at minimal cost to themselves.