PROPER TY I N P E R S P E CT IV E
ISSUE 17 -R
edevelopment, rezoning, repositioning:
does it lead to revaluation?
-E
xperiences of a fourth generation
residential real estate investor:
“Successful residential leasing combined
with social responsibility”
AUTUMN 2015
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isualisation and analytics of real estate
data are the future>   9
- Changes in portfolio
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Redevelopment, rezoning, repositioning: does it lead
to revaluation?
Let us start at the end: we all like positive revaluation.
For some real estate, especially old, obsolete, vacant and unattractive real estate, there is
no other choice than to fundamentally change the targeted users. Often, this involves substantial investment. For a real estate investor, these investments can only be justified if the
expected future return offsets the remaining value of the property plus the necessary investments to redefine a building. This article will highlight the fact that huge investments are
not always needed to drastically improve the value of your assets. But should you redevelop,
rezone or reposition? This article contains a few creative examples to inspire you and some
thoughts on three ways to add value to your real estate.
EXAMPLES
The 18th century lighthouse at Harlingen, a small town in the north of the Netherlands fell into disuse in 1998. Shortly after, it was transformed into a one-bedroom hotel / bed & breakfast.
A U T U M N 2 0 15
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The bridge-keeper’s house in Leiden, obviously not a job title you hear anymore, was transformed
into a tourist facility that rents out boats and provides on board catering.
Amsterdam’s ‘Westergasfabriek’, a gas plant that formerly provided the city’s energy, was transformed into a cultural attraction with a theatre and restaurants called “cultuurpark Westergasfabriek”.
Maastricht’s Dominican Church is now in use as a large bookshop.
The former savings bank ‘Rijkspostspaarbank’ and the former head office of the ‘Volkskrant’ newspaper in Amsterdam have become hotels; its rooms carry themes devised by the cartoonist, Opland.
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PROPERTY IN PERSPECTIVE
Hospitality often provides new ideas for tourist attractions: an old haystack that has been turned
into a Bed & Breakfast on a farm or the water tower in Dordrecht that dates back to around 1900
that has become a hotel.
IBUS recently acquired an old printing office that belonged to the former communist party, which is
being transformed into fashionable loft apartments in the centre of Düsseldorf.
Although partly theoretical, it is useful to discriminate between redevelopment, rezoning
and repositioning.
•
Operational: replacing management, adding
new functions to the building such as carports, bike sheds, a pantry, a washroom etc.
REPOSITIONING
A modern way to upgrade an office building
could be to transform it into an air-purifier.
This is exactly what a Dutch initiative is trying to realise. During a visit to Beijing, Daan
Roosegaarde, a Dutch designer, and his team
were triggered by the effect of smog on people’s
daily lives. They came up with the idea of creating the world’s largest air purifier: a Smog Free
Tower. Roosegaarde and his team of experts
have used patented nanotechnology to build
the world’s largest smog vacuum cleaner. The
Smog Free Tower produces smog-free bubbles
of public space, enabling people to breathe and
experience clean air for free. The first sevenmeter-high Smog Free Tower cleans 30,000 m3
of air per hour of ultra-fine smog, uses no more
electricity than a water boiler, and runs on green
Repositioning might seem to be the least drastic
in financial terms. Generally speaking, the use
of the building remains intact. The “look” of the
building will change to attract different kinds of
users. The investment strategy could be to upgrade the building in a way that would justify
higher rental levels. Upgrading could be:
•Cosmetic: the ‘look & feel’ are improved, e.g.
by painting, art works, design, a more modern
interior or by adding a garden.
•Structural: changing or replacing installations,
adding space, making buildings more energy
efficient or creating sport facilities or a swimming pool in the building.
A U T U M N 2 0 15
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energy. Roosegaarde also creates jewellery
from the smog particles collected, as a tangible
souvenir. The carbon-filled smog dust is compressed to produce high-end jewellery like the
Smog Free Ring and Smog Free Cufflinks. The
Smog Free Project is not only intended to be a
definitive local solution for clean parks, but also
as a sensory experience of a clean future. Along
with governments, NGOs and the clean-tech industry, people can become part of the solution
instead of part of the problem. The intention is
to take the prototype on a world tour to gain
supporters. In future, when office buildings are
upgraded, this could provide an opportunity to
implement the nanotechnology-based filters in
office buildings.
REZONING
Rezoning, as in the case of repositioning, normally leaves the structure of the building unchanged. However, what it does is give the
building a new function while retaining its original identity. The use and purpose of a building
change dramatically while its specific or historic
character helps to make the building or the site
special and authentic. Its special character reinforces the attractiveness of the building or
site with its new function. As the building remains architecturally and structurally intact,
the investment can be lower than in the case of
complete redevelopment, but is normally higher
than for re-positioning.
Although not a typical place for rezoning, the
New York High Line project is a high profile example of giving a new use and function to an
old site. A portion of the Manhattan West Side
Elevated Highway, which had opened to trains
in 1934, had fallen into disuse in the 1960s and
was closed in 1980. Construction work to repurpose the railway into an urban park began
in 2006 and the third and final phase opened in
2014. Dutch garden designer Piet Oudolf was
responsible for designing the layout of the park,
creating a unique landscape with 210 species of
plants including many that were formerly embedded in railway gravel. Stretches of the iron
track evoke its former use. This rezoning project
reinforced the gentrification of the Meatpacking District which has been transformed from a
criminal and drug traffic borough in the 1980s
into the New York’s ‘most fashionable quarter’.
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REDEVELOPMENT
When a building or site is redeveloped, its architectural structure is normally fundamentally
changed requiring its entire or partial demolition followed by new construction. This often
involves higher investment costs. In fact it could
lead to a building being valued at land value minus demolition costs before redevelopment.
A spectacular redevelopment of a site took place
at the new high-speed railway station in Liège,
Belgium. The city had been in the doldrums for
years but in September 2009 a new hyper-modern railway station, designed by the Spanish architect Calatrava, was opened. The iconic building helped the ‘rebirth’ of the city. Tourists are
attracted by the spectacular design of the station, thus creating an impulse for new offices,
retail and apartments as well as a new city axis
with many pedestrian zones and cycle paths.
How one building really became a catalyst for
the city and created spin-off for the social and
cultural climate in Liège.
DISRUPTION
Our world is changing rapidly and dramatically
through technology, including 3D-printing, a
globalised society, digital communication, the
“internet of things”, on demand co-workers
through online outsourcing and digital platforms to hire personnel, and online shopping.
New business concepts can be quite disruptive
to existing business models too. Kodak was
forced out of business by digital photography;
major airlines are suffering because of cost-cutters; V&D department stores are being squeezed
by formulas such as Action and Primark; taxi
companies are confronted with Über; hotels
have to cope with Airbnb, etc.
What will supermarkets look like in the future for
instance? Will they remain a traditional inner city
building where groceries are put in a shopping
cart or will they become a drive-through Pick Up
Point at an airport for example? Dutch grocery
store Albert Heijn has opened a Pick Up Point
that looks like a petrol station: after having ordered their groceries online and choosing their
desired pick up time-slot, shoppers go to the
airport pick up point, insert a special pass in a
pass reader, open the boot of their car and their
groceries are put in their car in a box that has
been specially prepared for them. The question
PROPERTY IN PERSPECTIVE
now is whether this will be the new way of grocery shopping in the future or whether it will remain a temporary fashion for the interested few.
Buildings, however, seem to change slowly.
This is logical because structures made from
concrete or bricks and mortar are built to last
50 years or more. Using the structural shell of
a building for new functions and purposes will
enable creative investors to generate a return
with new opportunities.
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5
Experiences of a fourth generation residential
real estate investor: “Successful residential leasing
combined with social responsibility”
An interview with Sieb Zeilstra – Zeilstra Beheer B.V.
Zeilstra Beheer B.V. (Zeilstra Beheer) is a family business which started in The Hague around
1900. The company is currently one of the leading residential property managers in the
Netherlands and is still privately owned. The accumulated experience of four generations
has provided input for a business model based on close interaction between asset managers
and property managers. This serves one goal: to know what tenants are experiencing with
respect to the property and translate that into strategic investment decisions. For over a century now, the asset focus has always been on main-stream, affordable housing.
We spoke to Sieb Zeilstra, owner and director
of Zeilstra Beheer. His great-grandfather started
the business and from then on, experience and
knowledge were passed from father to son. This
interview offers an insight into the apparently
successful vision and strategy that has kept the
Zeilstra family business thriving. Sieb Zeilstra
is also a board member of ‘Vastgoed Belang’, a
branch organisation representing the interests
of private real estate investors.
Could you talk us through the greatest challenges since Zeilstra Beheer was founded?
The greatest challenges throughout the years
were the various economic crises; somehow it
seems that every generation has its own crisis
to deal with. My great-grandfather started in
business as a carpenter. Around 1900, there was
little work available in Workum (Friesland) and
the Zeilstra family moved to The Hague. At the
time, the family’s activities were mainly concentrated on the construction of houses. As money
was tight and the number of people who could
afford a house still limited, the Zeilstra family
ended up owning some of the houses they had
built themselves. These units were rented out
and this was in fact the beginning of the current management organisation. The second generation had two major crises to deal with: the
great depression in the 1930s and the Second
World War. In an environment characterised by
deflation, individual incomes were falling and
the number of bona fide tenants dwindled. By
implementing successful tenant retention programmes the company managed to stay afloat.
In fact the post-war period was also a time in
which the company was able to expand. My
grandfather was appointed as an appraiser for
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the Dutch state, to solve all kinds of land issues.
He was a predecessor of the current real estate
appraisers, a profession which did not exist in
those days. My father – third generation – had
to cope with the oil and energy crisis in the
1970/1980s and with towering interest rates.
He decided that the real estate values and low
cap rates in the 1970’s were no longer realistic and so he sold most of his properties. The
massive downturn in house prices as a consequence of interest rates of up to 14% gave him
an excellent opportunity to reinvest. He built
up a newly acquired family portfolio, which
partially contained the units he had sold some
years before. As a member of the fourth generation, I found myself coping with the results of
the latest financial and real estate crises. Prior to
2013, the residential market came to a standstill
when financing was difficult. By our tight implementation of the combination of property and
asset management, we retained a good feeling
for tenants’ demands and we were able to keep
vacancy low and prices at market level.
What are your thoughts on the challenges
and opportunities in the residential market?
First of all, there is a great difference between
the Amsterdam market and the rest of the
Netherlands. Residential properties in Amsterdam are in great demand among basically all
groups: tenants, owner occupiers and investors.
However, in a lot of other cities rent increases
are much more limited, especially in the lower
bracket. The majority of people cannot afford
to pay any more rent. Residential owners still
have to work hard to keep units leased in a
lot of places. Changing demographic patterns
is another big issue which has an impact on
PROPERTY IN PERSPECTIVE
the number of tenants and the type of houses
required.
Due to the considerable transparency of the market, tenants are becoming more and more aware
and critical of the price they pay for a certain
level of quality (finish, location, size, etc.). If the
price is perceived as being too high for the quality received, for example due to overdue maintenance or general outdatedness, there will be
an increase in tenant turnover and vacancy periods. This logic applies to both the subsidised
residential market and the open market. This
implies that residential owners are being forced
to invest in units with sometimes only limited
financial return. This is exactly the reason why
property managers are so important at Zeilstra
Beheer. Without sufficient knowledge about the
wishes and troubles of individual tenants, asset
managers cannot take appropriate action and
rental income will eventually dwindle and/or
cost of investment will get out of control.
We see opportunities in middle segment, nonsubsidised residential real estate. In our view,
this segment ranges from the liberalisation
level – a monthly net rent of EUR 710.68 – to
approximately EUR 850. Often people make the
mistake of defining this segment as going up to
EUR 1,000, but this is only the case in Amsterdam. Outside Amsterdam net rents in this segment are significantly lower. We focus on good
quality, smaller units in the vicinity of different
amenities (such as retail and public transport).
The difficult part is implementing rent increases
within the tight individual budget of middleincome tenants when both the government
– through legislation – and the market – through
transparency – are creating downward pressure
on rents due to the demand for quality.
Which tendencies do you see in the finance
market?
The finance market – the banks – is still struggling with the real estate market. Many of the
banks still have undesirable and overly financed
real estate-secured loans on their balance sheet.
On top of this, staffing of real estate departments at banks has generally decreased, as
has their familiarity with the market. Together
with the extensive new regulations and reporting requirements imposed by the DNB/AFM, this
has led to a strict risk mitigating attitude that
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limits both new and current loans. As a result,
banks claimed a large part of residential investors’ free cash flow to reduce LTV. This reduced
investors’ opportunities to adapt and modernise
buildings, which had a negative impact on occupancy, rental income and cash flow. But it has
to be said that the climate seems to be changing
a bit. Foreign investors are exhibiting considerable interest in the Dutch housing sector. Some
banks are showing more appetite for new deals
and are beginning to recognize the attractiveness of the Dutch residential sector.
What are your thoughts on the governmentimposed tax on subsidised rental units (verhuurdersheffing)?
This tax measure is probably the biggest injustice imposed on private residential investors in
the last centuries. Of course there was a need
to restructure the financing of housing corporations. However the “verhuurdersheffing” was
also imposed on private residential investors
who, in contrast to the housing corporations,
never benefitted from state secured loans. And
in a lot of instances these private investors are
competing for the same tenants.
The rationale was that, as compensation for
these higher taxes, owners – both housing corporations and private/institutional investors –
would be allowed to increase their rent based
on tenant income. However, there is one flaw
in this line of thought. Housing corporations
generally lease their subsidised units at 70% of
the maximum rent, which means there is ample
room for increasing current rents to achieve the
compensation allowed. The majority of private/
institutional investors, however, were already
letting their units at either the maximum rent
allowed or at market rent. This means there is
either no legal base for a rent increase or it is
not possible from a market perspective to apply the rent increase without the risk of higher
vacancy. The new tax designed to recoup old
government funds is therefore being paid for
by the private sector, without compensation
for the most part. New investors have the opportunity to bring their investment models into
line with the new tax situation. The “verhuurdersheffing” came more or less at the same time
as the change to the banks’ financial criteria
and therefore had a substantial impact on the
free cash flow of private investors. The current
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levels of the “verhuurdersheffing” have been set
until 2017. We are making efforts to mitigate the
impact of these measures in conjunction with
Vastgoed Belang.
What would you say are the general trends
in the residential market?
First of all, cost control will become more and
more important. Due to increased market transparency, tenants are becoming more and more
price conscious and critical of the price of residential quality on offer. When rents are under
pressure but high quality still has to be provided, margins are squeezed, thus increasing
the need for tighter cost control.
Moreover, a higher proportion of equity in new
(but also in standing) investments will be required to reduce banks’ anxiety. This should lead
to better long-term conditions and relationships
with banks, although it will create downward
pressure on return on investment. A combination of cost control and low leverage in today’s
environment might enable a direct return of approximately 4% with a 2% upward potential for
indirect return. As of 2015 we are seeing a substantial increase in prices when assets are sold,
especially in de Randstad.
Finally, make sure you do not only invest in the
general quality of the property but also in the
sustainability of the properties. As mentioned
before, tenants are becoming ever more critical
about property quality. Interest in sustainability
may only be limited at the moment, but in the
near future, it is likely to become a more important feature if tenants’ perception of quality.
Tenants will move if they feel that there is an imbalance between price and quality. Professional
management will be of the utmost importance.
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PROPERTY IN PERSPECTIVE
Visualisation and analytics of real estate data
are the future
Interview with Arjan Knibbe – KR&A
Arjan Knibbe founded KR&A in 2014. After working for many years as a sell-side real estate
analyst with Kempen & Co, UBS and ING, Knibbe started his own firm. KR&A offers a broad
range of data solutions for real estate companies. In Knibbe’s view, the real estate sector is
failing to use data sufficiently for decision making. In contrast to many tenants, investors
and developers are lagging behind in the use of data-derived information. They are still only
using old-school, backward-looking research and experience for decision making.
Knibbe believes that
data analytics and the
resulting information
has become a competitive advantage to
real estate companies.
To give an example,
KR&A is able to make
a map of a city that
visualises all shopArjan Knibbe
ping centres by size
for each postal code zone, indicating, for instance the level of education, inhabitants per
square meter and degree of online shopping.
Investors use this research to decide whether
or not to invest in a particular centre, whether
or not to add certain retail players, etcetera. We
spoke to Arjan Knibbe about his ideas of how to
use big data in real estate.
What triggered your fascination for a “different kind of real estate research” in 2014?
I always had a strong fascination for the way
map makers turn data into beautiful visualisations. And as an investment banking analyst,
I’ve been working with data for years. I was attending a course on Big Data in 2013 as part of a
management programme. And all the time I was
thinking: ‘Why is no one using this, not even the
real estate hedge funds?’ Then it struck me that
the vested interests in our industry, in particular
those of real estate agents, are so massive that
there is no incentive to innovate with data in our
industry. Sharing transaction data is compulsory
in most financial markets but a near-crime in real
estate. The non-commodity nature of real estate
does not help to generate interest in data either.
In addition, experience in real estate markets is
more valuable than experience in other markets
such as the telco or IT industry. Experienced
A U T U M N 2 0 15
leaders in real estate can feel threatened by
the new insights that data can offer. Data shifts
power to data analysts and that has political
consequences for many of the real estate alpha
males, especially those who are low on content.
I have been a real estate analyst since 1994 and
I really sympathize with this shift of power.
I also strongly believe that data can contribute
to a more effective allocation of the external effects of real estate and capital gains throughout
society. By using data we should be able to build
better, more efficient, more pleasant and more
sustainable cities. We are delighted to be working with institutional investors on this journey
towards incorporating data and using data to
increase the impact of financial investments on
society.
You worked most of your professional life
as a real estate analyst on stock exchange
listed companies. How did that approach
differ from your present perspective?
Nowadays I set my own agenda, in conjunction
with my clients. When you work for a boutique
firm like Kempen & Co or a global powerhouse
like UBS Warburg, you are part of a machine.
A machine needs to be managed but management layers often distort the optimal allocation
of time and energy, and most of the time they
reduce creativity, certainly in investment banking. A possible exception is financial engineering, where creativity seemed very present. But
we all know what that led to. The real estate
landscape can only change slowly. Cities change
very slowly and larger players change slowly.
Much of the perspective that I developed as a
sell-side analyst is still very relevant today.
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Is it difficult to make geo-visualisations of a
range of data?
Not anymore. The thing is to select the right,
relevant data from the big pool of data. It is also
remarkably cheap, if you keep large IT corporates out. Technology is democratising knowledge including geo-visualised knowledge. A
portfolio mapping system that cost an investor
EUR 100,000 just five years ago can be built for
less than 25% of that today, with at least ten
times the performance in speed and storage capacity. And prices are falling. That is bad news
for vested interests but it offers opportunities
for others like KR&A.
Much of the data you are using is public
data; some is private data: how do you work
to find this data?
By just putting in long hours working and searching and by conducting constant discussions with
data scientists and clients. It also takes time to
develop relations and understand quality differences between private data providers. Our
clients are public and private real estate investors, developers, institutional investors, including insurance companies and pension funds,
and banks. We also offer services to investors
that invest in listed real estate securities. They
all require different data. It is the combination of
a deep understanding of the real estate industry
and the computer science mindset and skill sets.
How is KR&A organised?
It’s very lean. We really try to benefit from all
the flexibility that comes with the Dutch ZZP
[self-employed] system. Effectively we have five
permanent contributors inside the company and
about five outside. On top of that we have external accountants and lawyers. We share more
information than strictly necessary, but try not
to waste each other’s time. ‘KR&A insiders’ have
backgrounds in Investment Banking, Computer
Science, Retailing and Architecture. We value international backgrounds and perspective when
we hire.
Our offices in Spaces Vijzelstraat in Amsterdam
accommodate our flexibility, as we rent far less
space than we would in a traditional setting, be
it at a much higher price per net square meter.
On a busy day, people just pick up their stuff
and find a comfy chair or a closed office cell to
work, read, listen or talk.
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Most of us work part-time, but any one of us can
quickly step up to 150% when clients so require.
We are all client-obsessed and we compete
on quality, flexibility and speed, not on price.
When we discuss real estate and data we are
completely at ease at board level and with the
largest institutional investors in the world. Our
products are consultancy, a research membership for institutional investors and real estate
web portals. We behave and approach problems
as a start-up, for as long as possible. But we
don’t mind wearing a tie when required. We’ve
been there.
Tenants often use turnover data per product; sales per location; impact of discount
offers; time related sales and related product sales per consumer to improve their advertising and marketing efforts and product
offer. What kind of data should real estate
investors use?
That is highly dependent on the investor’s markets, regions, property sectors and risk appetite. We have spent months designing a framework to address this question and we are more
than happy to discuss our framework with clients. It would be naïve and unfair to customers
to broadcast the answer to your important question here today. In contrast to many start-ups,
KR&A is not a very naïve place and we do have
many well-informed clients, whom we value
highly.
Is there a difference between private and institutional real estate investors?
Yes, there is a difference, but it diminishes the
larger the private investor becomes. Private
investors seem to be slightly less impressed
by 30-year-old Harvard MBAs explaining how
you should play European real estate markets.
Maybe this is because they seem to be thriftier
in the way they manage their own money, compared to those managing other people’s money.
Maybe some institutional investors enjoy the
back slapping, fame and glory at conferences
a bit more than private investors. Institutional
investors in the Netherlands are probably underpaid. Often private investors have less regard
for the academic approach to investment than
institutional investors.
PROPERTY IN PERSPECTIVE
You worked many years for big financial institutions; now you have founded a start-up.
What are the differences and what is your
start-up experience?
It is different in many ways. Banks were told
to stop being a utility and start outperforming
other banks. They tried and most failed. That
was hard for society as it had to bail many of
them out. So now banks are being told they are
utilities again, in the Netherlands much more
than in the rest of Europe. This is very sad in
my view, because the Netherlands used to have
a credible investment banking community position and we lost it. Not because of competition
but because of self-imposed regulation and, in
my opinion, a national intolerance for stellar
performance and pay.
are concerned about the quality of cities and externalities of their real estate portfolios, developments or loans. We want to have a truly PanEuropean perspective and become a thought
leader on data for real estate. Our most important ambition is to create tangible, clear and undisputed value for clients and society. I believe
that we will be rewarded once we prove that. In
order to perform we need to have fun and be
able to attract the best people.
My start up experience has been mixed. Some
people have been quite supportive. There is
a wlot of free riding going on. Investors are
used to getting information for free, because of
the investment banking and real estate agent
model, which arranges payment on transaction.
We do not do transactions. The Dutch entrepreneurial culture is supportive. When I tell my German or French friends I have a mortgage, and I
voluntary quit my job, they get very nervous. As
a start-up there is nowhere to hide. There is no
corporate brand or power that opens doors. You
have to perform.
Per capita cheese consumption
correlates with
Number of people who died by becoming tangled in their bedsheets
A U T U M N 2 0 15
Correlation: 94,71% (r=0,947091)
800 deaths
33 lbs
Cheese consumed
Bedsheet tanglings
Cheese consumed
31.5 lbs
600 deaths
30 lbs
400 deaths
Bedsheet tanglings
What are your ambitions for KR&A?
We want to be the data authority of choice, for
international real estate investors, developers
and financiers. We want to remain unconflicted
and align with real estate decision makers who
What is the funniest correlation of researchdata you have come across?
The US per capita cheese consumption has a
94.7% correlation with the number of people
who died by becoming strangled in their bedsheets, in the period 2000 to 2009.
200 deaths
28.5 lbs
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Data sources: U.S. Department of Agriculture and Centers for Disease Control & Prevention
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C HAN G ES IN PORT FOLI O
Acquisition and private placement of
redevelopment project in Düsseldorf
Following its first Düsseldorf project, IBUS
acquired and placed a second private placement together with its German development
partner, fitis. This private placement consists of a former hospital and an apartment
building in two desirable residential areas in
Bilk and Unterbilk in Düsseldorf. Both buildings will be redeveloped into apartments,
which will be sold individually. The Fund
will have an expected term of around 3.5
years. More information on the project can
be found at http://www.kronen-wohnen.de
and http://www.gogrevestrasse.de
Den Haag Opportunity Fund
IBUS worked on a new residential opportunity fund in the summer, consisting of a residential portfolio with several retail units,
near the centre of The Hague. The portfolio
was offered in an auction process. After the
equity had been placed with a small number
of investors in a very short period of time,
IBUS was overbid in the auction process by
another bidder.
Auction portfolio the Netherlands
IBUS finalised the acquisition and placement
of a private placement in October, investing in a mixed commercial use portfolio
with buildings in the centre and south of
the Netherlands. The portfolio was acquired
from an auction process for EUR 12.5 million, all equity, which equals around 7x
gross rental income. The private placement
was established in a very short period of
time, with a small group of high net worth
investors. Our investment strategy is to optimize rental contracts and sell the buildings within the next three years.
Disposal of apartment assets in the
Rhineland area, Germany
IBUS sold 82 apartment units in Mülheim,
Germany in May 2015. The apartments were
sold to private investors in the Mülheim
area. The total sales price amounted to
EUR 3.4 million including costs. The apartment units were part of the Rhineland portfolio, which holds assets in Mülheim and
Remscheid. The remainder of the portfolio
will be sold in the years to come.
Asset Management for third parties
IBUS was recently asked to give its opinion
on a German office and retail portfolio for
a large Anglo-Saxon investment manager.
An investment quick scan was performed
within a week, analysing the market, rents
and yields for 12 properties in Berlin, Bonn,
Dresden and Frankfurt.
VGF Maastricht – Wyck
IBUS is currently in the process of acquiring a
retail and residential portfolio, consisting of
nine high street retail properties with aboveground residential units in the picturesque
shopping district of Wyck in Maastricht,
alongside the main road between the railway station and the lively Vrijthof Square.
After completing the acquisition process,
the strategy will consist of lease optimization and an exit within a maximum of eight
years. Subscription will be open to private
investors, the minimum investment amount
being EUR 100.000. For more information
on participating in this private placement,
please contact the IBUS office through
info@ibus.nl or +31 (0)20 755 9000.
Bergedorfer Strasse, Hamburg-Geesthacht, Germany
Krijgsman 6
P.O. Box 8010
Pre-financing facility
IBUS operates in very competitive markets.
Transactions are usually successful when
the buying party has been able to arrange
its financing at a very early stage. In order
to be able to compete in these markets,
IBUS has set up a pre-financing facility for
investors who can offer a bridging loan, for
a very short period of time, in return for
an attractive return, in order to facilitate
the acquisition process. More information
on this pre-financing facility can be obtained by contacting the IBUS office through
info@ibus.nl or +31 (0)20 755 9000.
1180 LA Amstelveen
IBUS to host Nyenrode workshop
Following several workshops for High Net
Worth investors and family offices between
2010 and 2015, IBUS and Nyenrode University (Centre for Wealth Management) organised a follow-up workshop on the topic of
‘What can private investors do better than
institutional investors’. During the workshop, small groups will work on realistic
cases and dilemmas based on this theme.
Previous themes have included ‘Real estate
as a necessary instrument for capital preservation’, ‘Real estate as an asset class for
generations’ and ‘Social media: a threat or
an opportunity for retail investments’. Participation in the workshop is by personal
invitation only.
The IBUS Company is an independent
T. +31 (0)20-755 90 00
F. +31 (0)20-755 90 90
E-mail: info@ibus.nl
www.ibus.nl
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Management on Linkedin
group established in 1992 by Onno Husken,
former Chief Executive Officer of Wereldhave
N.V. and Kempen & Co. IBUS develops and
invests in office, retail, residential and
hotel properties in the United States,
Europe and Asia. Since inception, 64 real
estate funds, with a total investment
consideration in excess of
1.6 billion,
institutional investors. Over the years,
more
than
half
of
these
investments
were successfully sold. IBUS also uses its
real estate knowledge and experience
to
advise
companies
financial
and
institutions,
institutional
listed
investors.
These assignments are directed towards
portfolio analysis, asset allocation policy,
investment strategy and second opinions
on direct and indirect real estate investments. IBUS is based in offices in
Amstelveen (The Netherlands) and New
York City (United States).
12
€
have been introduced with private and