Active property management – References
Berlin-Neukölln – positive outcome despite difficult market conditions
Parts of the district of Berlin-Neukölln are proving particularly challenging in terms of property management. Active and targeted property management is particularly important in cases with complex profile requirements.
As business manager, SIEPERT IPM is responsible for overseeing a residential complex including 122 residential units in Berlin-Neukölln.
The status quo
We were entrusted with the management of a property with a vacancy rate of approx. 10% and an average rent of around €5.30/m².
Our task was to achieve a long-term reduction in the vacancy rate while analysing and utilising the potential for increasing the average rent.
After around two years, SIEPERT IPM was able to report a reduction in the vacancy rate to less than 2% and an increase in the average rent to around €6.10/m².
Positive operating income was thus generated, despite the difficult market conditions.
Restructuring a property portfolio
We were instructed by a real estate company to draw up a complex business plan for restructuring a property portfolio in the former East German states. In doing so, we worked in close cooperation with the company’s Asset Management department.
The status quo
The portfolio comprised 1,682 apartments and 13 retail units, spread across several properties at 11 different locations in the former East German states. Due to negative developments, the portfolio was no longer fully capable of meeting principal payments.
Our company was thus tasked with carrying out a target-performance analysis of the extensive portfolio. This was to provide the basis for developing a restructuring plan, which would offer the client a way out.
Implementation and outcome
SIEPERT IPM presented a structured overview of the estimated cost, showing the history, status quo and a five-year projection, based on an in-depth analysis of the portfolio.
Various parameters were taken into consideration in the analysis. The following were examined in detail:
- the management status quo
- the need for investment and repair
- the respective local rental market
The analyses provided the basis for creating a package of measures to strategically restructure the portfolio with the aim of providing a viable way out for everyone involved.
The business plan created by SIEPERT IPM was subsequently checked and approved by a renowned auditing company.