Development applies to new property developments and redevelopment to the upgrading of portfolio properties.

Development: rather than reiterating the details, reference is made to:

Redevelopment involves upgrading an ageing portfolio property.

There are also investors who acquire problem properties with a substantial price reduction and subsequently increase their value with redevelopment measures. Investors who specialise in this area hold so-called workout portfolios. Adequate resources are essential.

The bases are:

  • Capital
  • Project idea
  • Know-how
    • Redeveloper or renovation team
    • Good workmen with experience of maintenance and repairs


  • Under the previous owner and hitherto higher market requirements, property-specific structure, management and shortage of capital combined to create a range of problems
  • Revitalisation
  • User-specific building > switch to a multi-purpose building
    • Administrative building > office building
    • Special-purpose property > industrial building


  • Portfolio property in a good location
  • Genuine alternative to new build activity


  • Adjustment to current market requirements
  • Flexible use
  • Use of spare space
  • Rent increase
  • Prevention of empty properties
  • Adding value to the portfolio (portfolio properties)


  • Definition of owner strategy
    • Buy and hold
    • Buy and sell
    • Exit planning
  • Viability analysis / feasibility check
  • Project development calculation
  • Business plan / refinancing adjusted to circumstances / track record
  • Risk allocation between investor and redeveloper
    • Forward contract
      • Acquisition of a project property at a fixed price, quality and deadline
      • Responsibilities
        • Redeveloper
          • Price, quality and deadline
        • Investor
          • Re-letting
          • poss. subsequent sale
    • Participation model
      • Wages based
      • Success-based fee
      • Profit sharing possible after debt repayment and interest on equity capital
  • Environmentally-sensitive planning and communication
  • Renovation of tenanted property or termination of tenancy in order to obtain higher rents upon re-letting?
    • Consideration of reputation
    • Consideration of image factor


  • Changes of use
    • Change of planned use
    • Conversion
  • Structural changes
    • Refurbishment
    • Demolition and replacement newbuild
  • Technical upgrade
    • Change of equipment and infrastructure (refurbishment, also revitalisation)
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