The exit factors may be summarised as follows:
- Strategy
- Expiry of the original holding period
- Changed exogenous or endogenous circumstances
- Other acquisition or consolidation options
- Individual property appeal or portfolio appeal
- Change of investor strategy in general
- Change of property appeal or portfolio appeal
- Tenant situation
- Vacancy rate situation
- Reduction of the holding period
- Property market cycle
- Supply and demand situation
- Property price trends
- Rent trends
- Physical property cycle
- Maintenance backlog
- Renovation / repair
- Imminent re-letting
- Investment requirements with a view to extending the holding period
- Financial property cycle
- End of a financing cycle
- Change in the interest rate trend
- Change in exchange rates for foreign currency mortgages
- Changes to the law
- Legal certainty of property ownership
- Tax law
- Abolition or reduction of land taxes (e.g. capital gains tax on property)
- Change to tax systems
- Transaction aspects
- Costs
- e.g. IPO
- e.g. property securitisation
- e.g. public to private
- Time involved
- Commitment of management capacities
- Costs
Depending on the portfolio, it may be necessary to create property categories, i.e. a “holding” segment and a “sale” trading option segment.