Because Real Estate Transactions and Real Estate Asset Management Require Holistic Strategies

Globalisation, changing usage requirements, ESG criteria and increasing regulation have significantly increased the importance and complexity of real estate transactions. Today, real estate transactions and real estate asset management are more than ever a key focus for institutional investors and capital providers, as well as for policymakers and the public. In addition, technological progress has further accelerated decision-making processes.

Against this backdrop, targeted real estate transaction strategies form the basis for sustainable value creation. Successful real estate transactions require careful analysis of economic value and risk drivers, robust structuring and the optimisation of financing approaches. At the same time, regulatory requirements, market changes and real estate-specific characteristics must be considered at an early stage. This is precisely where our advisory services come in: we combine transaction, financial, regulatory and real estate expertise and support institutional investors, regulated asset managers and funds throughout the entire transaction and asset management cycle.

Mann erklärt seine Strategie

Real Estate Transactions: Financial Due Diligence, Structuring and Financing

We support institutional investors in real estate acquisition decisions throughout all phases of the transaction cycle, combining transaction advisory with comprehensive expertise and a deep understanding of regulatory requirements. We advise on both buy-side and sell-side transactions and use well-founded market, valuation and structuring analyses to create a robust basis for successful, strategically consistent investment decisions.

At the outset, we analyse the economic framework of the real estate transaction, assess relevant value and risk drivers such as location and other parameters, and consider the proposed transaction and financing structure in relation to the respective investment objectives.

The results of these analyses are presented in a structured manner and provide a clear basis for investment decisions, further transaction structuring and the preparation of negotiations. This gives decision-makers a concise overview of the real estate transaction’s key economic drivers, identified risks and relevant areas for action.

As part of our transaction support, we assist with financial due diligence, thereby creating transparency regarding the economic and structural drivers of the respective real estate transaction. Depending on the situation, the results may be consolidated, for example, into a structured presentation of the key financial due diligence findings, an overview of the principal opportunities and risks, and an assessment of relevant value and earnings drivers. This provides you with a concrete basis for further review, pricing and transaction design.

Due diligence is particularly important in share deal transactions, because the entire corporate structure, including all rights, obligations and potential risks, is acquired. In addition to assessing the underlying real estate from an economic perspective, we therefore also include the corporate and structural aspects relevant to the transaction process in our analysis of share deals. This allows potential effects on the purchase price, transaction structure and risk allocation to be considered at an early stage of the process.

For subsequent decisions, the key findings are presented in a way that enables the effects on purchase price assumptions, structuring options and the allocation of identified property risks to be assessed transparently. This creates a robust basis for decision-making and for preparing the next steps in the transaction.

Our services also include structuring institutional real estate investments and developing efficient financing structures as part of our financing advisory. The objective is to optimally align investments across return requirements, regulatory frameworks and portfolio strategy.

To this end, we assess structuring and financing options in terms of their economic impact and integration into the portfolio and investment strategy. We consider return requirements, financing conditions, regulatory requirements and the long-term portfolio structure. The resulting options provide transparency on the effects on financing, return, risk and portfolio integration, supporting the assessment of possible courses of action.

We view every real estate transaction as an integral component of successful long-term portfolio development, thereby ensuring that decisions make a sustainable contribution to value creation. We therefore analyse how the transaction fits into the existing portfolio allocation, risk structure and long-term investment objectives. This provides a holistic basis for decision-making that considers not only the individual transaction but also its impact on the existing portfolio and risk structure.

In addition to supporting individual real estate transactions, we also assist regulated asset managers and funds with the ongoing management of their real estate investments. Our services focus on long-term portfolio development, robust valuation, and regulatory-compliant reporting and risk management processes.

Real Estate Asset Management: Valuation, Portfolio Management and Reporting

We understand real estate asset management as an ongoing management process in which the economic development of individual properties and investments is not considered in isolation, but in the context of overarching return, risk and portfolio objectives. In accordance with the relevant regulatory requirements, we value illiquid assets such as real estate and investments. In doing so, we combine advisory expertise and methodological precision with regulatory assurance and comprehensive market analyses. We also support asset management companies and institutional investors with independent valuations in accordance with Section 250 of the German Capital Investment Code (KAGB), thereby providing a robust basis for informed investment and management decisions.

Regular monitoring makes it possible to identify changes in the value development, performance and risk position of the properties and the portfolio at an early stage and to compare them with the underlying planning and investment assumptions. Forecasts and scenario analyses help to model different developments at an early stage and make their impact on performance, risk and investment strategy transparent.

Real estate asset management thus also becomes an important portfolio optimisation tool: structured analysis of individual assets and their contributions to the overall portfolio makes it possible to identify areas for action, derive priorities and compare different management options.

We analyse the property, market and financial information relevant to the valuation and consolidate it into a transparent assessment of value. In addition to the determined value, the underlying assumptions, key value drivers and potential risks are particular areas of focus. This gives asset managers and funds a transparent basis for further portfolio and investment decisions. It also enables changes to be assessed not only at the level of individual assets, but also within the overall portfolio. For example, concentrations, differing performance trends or changes in key value drivers can be identified at an early stage and taken into account in subsequent portfolio management.

Our range of services includes independent valuation using internationally recognised valuation methods as well as valuation oversight for asset management companies. Reliable scheduling, audit-ready documentation and structured reporting are integral parts of our approach and ensure the highest level of transparency for investors, supervisory authorities and other stakeholders.

As part of valuation oversight, we support the structured monitoring and plausibility review of valuation processes and help ensure that valuation assumptions, results and documentation are presented consistently and transparently. The information obtained can be used for both internal management processes and reporting and audit requirements.

Our valuation services also make an active contribution to portfolio management: they identify risks at an early stage, increase the comparability of decision alternatives and help position investments specifically as sustainable value drivers within the portfolio. Performance and portfolio management combine historical developments with current data and forward-looking assumptions. Regular review of valuations and relevant portfolio information enables changes in economic conditions and deviations to be identified at an early stage. This makes different courses of action comparable and supports the preparation of sound management decisions.

Beyond valuation, we support the ongoing management and monitoring of real estate portfolios through risk management and reporting, thereby strengthening regulatory assurance and transparency at fund level. Our services include risk management, performance and portfolio management, as well as look-through analyses that provide full transparency down to the level of the underlying assets. In this way, we create the conditions for consistent governance, robust reporting and forward-looking management of complex real estate structures.

Consolidating information at asset, investment and fund level creates a consistent view of the overall portfolio. This improves the comparability of individual investments, supports the identification of concentration and portfolio risks, and facilitates the assessment of performance in the context of the overarching investment strategy. Structured reporting brings together the key valuation, performance and risk information and makes it transparently available to internal decision-makers and other relevant stakeholders.

Our 360° Approach

Our experts combine in-depth real estate and industry knowledge with transaction, financial and regulatory expertise. Through close collaboration between specialised teams, we ensure an integrated advisory approach that takes equal account of economic objectives, regulatory requirements and real estate-specific characteristics. We support you as a reliable partner throughout the entire transaction and asset management cycle, addressing the complexity of real estate transactions with holistic advice and tailored solutions from a single source.