Indirect Property Investement

Definition: Direct property investment

= Investor acquires one or more properties in his or her own name (also known as an asset deal)

Specifics

The following types of investors are involved here:

• Owner-occupiers
• Private capital investors
• Professional property investment companies (total solution providers, general contractors, property management companies and so on), which monitor construction output for end-investors such as insurance firms, pension funds and other institutional investors.

Property

“Direct investors” focus on the following transactions in their property investments:

• Property transaction to acquire ownership
• Property management to control performance
  • Real Estate Management
    • Level: investor portfolio
  • Portfolio Management
    • Level: property portfolio
    • Ensuing efficient use
      • Earnings growth
      • Risk reduction
    • Optimisation of property portfolio
      • Adjustment of property portfolio
      • Property mix
        • Location
        • Use
        • User
    • Refinancing and hedging strategies
  • Facility Management
    • Level: individual property
    • Technical operation
    • Letting / management
• Financing Real Estate Investments
• Hedging
  • Property value fluctuation
  • Property returns
  • Amortisation
  • Liquidity (insolvency risks)
  • Market and general conditions