Manage-to-Core
It is difficult to incorporate ‘core properties’ into a portfolio – that is, properties with excellent rental levels, stable returns, and manageable investment requirements. But that is no reason to avoid this asset class altogether. On the contrary, learn how experienced real estate experts can help you identify rough diamonds in the real estate market and develop them into core real estate.
How can you bolster your property portfolio?
- How do you find attractive properties in a market where there is no core real estate for sale?
- Are you in a position to purchase and develop high-yield properties in the second-tier market?
- How well are you positioned to undertake genuine redevelopment – projects that go beyond a simple paint job?
- Can you successfully reposition redeveloped established properties in the market?
You have to address the following points
Best yield opportunities with second-tier real estate
Core properties – well-leased buildings with a stable return that require little investment – are highly sought after. So it is rare for investors to have the opportunity to add such properties to their portfolio – or else the high purchase price reduces the anticipated return.
In such situations it is worth taking a look at second-tier properties, which are often a better choice than overpriced core properties. But only as long as you are not afraid of undertaking real project developments and are ready to completely rethink and reposition such established properties with blemishes. Drees & Sommer’s experienced real estate team accompanies investors in their ‘Manage to Core’ strategy, which allows them to develop suitable real estate into top-tier properties.
Our network allows us to cover all relevant aspects of the project. For example, we analyze the market, location, land, potential of the site, and cost efficiency. We also estimate the investment costs, assess utility costs, and carry out a review of building regulations. In the case of conversion projects, we develop concepts for indoor climate, building energy and building services equipment (BSE). And if you want the addition to your portfolio to be a Smart Building, we will be glad to help you achieve this. We plan the construction phase using Building Information Modeling
It’s all about the users? We absolutely agree. That’s why we provide you with a space and function programs, concepts for use, marketing and leasing, fitout, and workplaces.
The benefits for you
- You can make well-informed property decisions based on a feasibility study.
- You develop second-tier real estate with potential into high-yield top-tier properties.
- You benefit from the expertise of the Drees & Sommer Group covering all relevant technical and commercial aspects of Manage to Core and the repositioning of properties.