The Business

Our line of business has changed radically: the literally down-to-earth property markets were superimposed on by the international capital market within a short period of time – fundamental aspects became secondary and short-term business profits came to the fore. Financial instruments split up product and risk leading to the hitherto fairly predictable property business becoming highly volatile.

Now, however, fundamental principles are valid again: it is not the “deal maker” that is called for, but property experts versed in implementation. What counts is neat handiwork in the fields of management, restructuring and realisation.

In the mid-term, we expect the following:

  1. 1The turbulent financial markets have calmed down, to be sure, but outside capital will remain scarce and costly for the meantime. Deleveraging will thus play a central role in intelligent crisis management.
  2. 2Investors with a large amount of their own capital like family offices, insurance companies, pension funds and investment firms will be able to put their buyer’s advantage to good use.
  3. 3Commercial property markets are also suffering – somewhat delayed – from the economic slowdown. We therefore expect that yields, unoccupied or underused property and fire sales will be on the increase. The value of German real estate will, however, remain relatively stable when compared with developments in other countries.
  4. 4Property will be of interest again for private investors as a material asset. As a result, the privatisation of flats is regaining importance.
  5. 5Holding on to property assets passively will lead to real loss of value – active management is essential.