Evaluation of the real estate to be divested is based on the following aspects, whereby this list is not exhaustive:
- Owner Strategy
- Trading-oriented owner strategy
- Adjustment of owner strategy to trading weighting
- Overweighting in the property portfolio
- Geographically
- On the use side
- Residential
- Office
- Commercial
- Property obsolescence
- Change in the investor (risk) profile
- Switch to another form of investment
- Stock exchange or market cycle related
- Changes in the economic climate
- in Switzerland
- worldwide
- in the users’ line of business
- Land taxes
- Upon expiry of the holding period
- with reasonable tax consequences (e.g. canton of Zurich / 10 years holding period)
- with optimal tax consequences (e.g. canton of Zurich / 20 years holding period)
- upon the occurrence of an optimal constellation (current market value, holding period and price trend “20 years ago” in the canton of Zurich)
- Upon expiry of the holding period
- Life Cycle
- Tenants
- Aging tenants
- Higher tenant churn rate
- Change in the type of tenants
- Property-specific new tenant focus (low-income tenants, tenants with immigration background etc.)
- Property no longer meets the contemporary needs of users > disinvestment
- Residential
- No longer based on number of rooms, but on users, while still attracting a range of users (to prevent an overly narrow tenant focus)
- Apartments for single people, co-inhabiting couples or 60+-persons
- Dinkis (double income no kids)
- Elderly persons, who move from a detached house to an apartment
- Family apartments
- Larger rooms
- More rooms (double income three kids / room for au pair)
- Larger windows
- Possibility of combining living and working
- Multi-generational housing
- Retirement properties (combined housing and care)
- Commercial
- Large rooms, can be arranged individual by making tenant improvements
- Halls that can be customised for production, storage and transport
- Residential
- Requires substantial maintenance and renovation > disinvestment
- Decision by the owner to leave maintenance and renovation investments to a new investor
- Demolition situation > disinvestment
- Decision by the owner to leave the replacement newbuild to a new investor
- Tenants
- Portfolio location with result of the property/properties to be sold
- Increase in value despite difficult property / profit taking opportunity
- Funding requirements (permanent, temporary or cyclical)
- Consolidation
- Rent reductions
- Increased expenditure
- Exit strategy
- Occurrence of an exit condition
Further Information
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