A disinvestment decision is often triggered by the upcoming structural refurbishment, renovation or conversion. Every conscientious property investor needs to address the issues relating to his aging property. The factors are:
- Owner strategy
- Regular maintenance inspections
- Determination of the action required
- Decision on renovation project
- Structural measures
- Maintenance
- Maintenance (“facelift”)
- Repairs
- Renovation (restoration to a condition that is comparable to the original newbuild)
- Change
- Adjustment (adjustment to changed (new) building requirements)
- Enhanced comfort
- Adjustment to new regulations
- Adjustment to the bearing structure (earthquake-resistant)
- Energy-related building refurbishment
- Conversion
- Extension
- Annex
- Addition of a storey
- cf.
- Maintenance
- Demolition and replacement newbuild
- Investment volume
- Use during structural measures?
- Occupation during conversion
- Termination of tenancy / post-renovation re-letting at better conditions
- Usually more viable option for the owner
- Higher new rents increase the market value of the property
- Refinancing
- Subsequent returns
