Demand up for asset and property management mandates

The number of requests for asset and property management mandates is increasing dramatically as investors seek to reorganise their real estate portfolios acquired in the last few years, according to the German arm of independent real estate consulting group NAI. Frankfurt-based NAI apollo said that its property management has recently taken on the management of 250,000 m² of new properties.

The company said the capital investment boom of the past few years has brought about substantial changes in the structure of the real estate marketplace in Germany. As the money market gradually moved closer to the real estate market, every real estate property was suddenly 'up for grabs', NAI apollo said, adding that even B- and C-locations were capturing prime rates. Real estate holdings are now being regrouped on a large scale in both large as well as less active segments.

The financial crisis has accelerated the pace of regrouping, noted Axel König MRICS, CEO of NAI apollo. 'We are observing that the number of requests for Asset and Property Management bids has increased dramatically. More and more property owners and investors are currently rethinking the management structures for all of their asset classes and are strongly realigning themselves in order to ideally improve the financial performance of the properties and real estate portfolios.'

He said that often the banks offering financial support act as the ‘driver’ for the optimisation of asset and property management activities, especially as soon as they notice that renters, either partially or in whole, often fail to comply with their obligations for due diligence.